Publishedduration10 minutes ago
image captionUK chief negotiator Lord Frost (L) is set to continue talks with his EU counterpart, Michel Barnier
Talks between the UK and EU are due to resume later in a final bid to agree a post-Brexit trade deal.
After a weekend of tense negotiations, EU sources told the BBC an agreement on fishing was close – but this was disputed by Downing Street.
The UK’s chief Brexit negotiator, Lord Frost, will continue talks with his EU counterpart, Michel Barnier.
And PM Boris Johnson will speak later to European Commission President Ursula von der Leyen.
The BBC has learned that Mr Barnier briefed EU ambassadors early on Monday morning that “divergences” remain, also telling them that he was neither optimistic nor pessimistic, but “realistic” about the prospects of a deal being reached.
Cabinet Office Minister Michael Gove is also going to Brussels for a meeting with European Commission Vice-President Maroš Šefčovič.
UK-EU negotiations resumed on Sunday, with the issues of fishing rights, competition rules and how to enforce agreed rules still causing problems.
EU sources suggested on Sunday evening that a breakthrough in talks on fishing was close to being made.
Brussels wants EU fleets to have ongoing access to UK waters, and the two sides have been discussing a transition period where access could be reduced over time.
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One senior EU diplomat told the BBC that fishing “was definitely not the issue the talks are stuck on”.
But this was quickly followed by a No 10 source saying there had been “no breakthrough”, adding: “Nothing new has been achieved on this.”
Both sides are clear that disputes remain on the two other sticking points – the so-called “level playing field”, and governance.
What is known as the level playing field relates to a set of shared rules and standards to ensure businesses in one country do not have an unfair advantage over their competitors in others.
Brussels wants the UK to adhere to EU rules on issues like workers’ rights, environmental regulations and state aid, but the UK says the goal of Brexit is to break free from following common rules and reassert national sovereignty.
Border checks and taxes will be introduced for goods travelling between the UK and the EU if a trade deal is not reached and ratified by the end of the year.
The British Chambers of Commerce has warned traders are unprepared for changes that will come when the Brexit transition period ends in 24 days’ time.
Deal or no deal? ‘It’s 50-50’
Irish Taoiseach Micheál Martin described negotiations as being on a “knife edge” and said he hoped “common sense prevails” to allow a trade deal to be struck.
“My gut instinct is that it is 50-50 right now.