Reports indicate that a post-Brexit trade deal could be struck between the UK and EU before the end of year after prime minister Boris Johnson agreed to a major concession on competition rules.
The EU’s chief negotiator Michel Barnier informed MEPs in Brussels that Johnson had shown a willingness over the weekend to accept a treaty-level mechanism to guarantee fair competition as regulatory standards diverge over time, which had given way to the resuming of talks.
However, major sticking points such as fisheries remain a barrier to an agreement and must be overcome if both sides are to strike a deal by the end of the transition period on December 31.
During his address, Barnier suggested that the UK government had, for the first time in the talks, “accepted a mechanism of unilateral measures” in case of systemic divergences over a prolonged period of time.
Both parties are said to now be discussing the “architecture” of such a mechanism, including a “rebalancing mechanism” which would redress fair competition in the event that UK standards diverge too far from those of Europe. UK negotiators are reportedly focusing on the “belts and braces” of such a system to ensure the country is not left liable to damaging legal action.
Although Barnier said a “narrow path” to a deal was now in sight, he admitted that fisheries remained a stumbling block with no movement in negotiations over the issue.
Barnier tweeted: “The next few days are important, if a UK-EU deal is to be in place on 1 January 2021. Fair competition, and a sustainable solution for our fishermen and women, are key to reaching a deal.”
Speaking in Paris, European Commission president Ursula von der Leyen said: “First of all there is movement. That is good. We are talking about a new beginning with old friends. We are on the very last mile to go. But it is an essential one. We want a level playing field, not only at the start, but also over time.”
Yet, while indications are that negotiations could continue until as late as New Year’s Eve when the transition period is due to end and a no-deal outcome remains a possibility, businesses in a variety of industries remain in a state of limbo where they are unable to properly plan for the near future which will greet them on January 1 as rules on UK-EU trade change.
In the fishing and fish wholesale industries, many firms remain fearful of regulations which could follow a no-deal scenario if a compromise cannot be found in the negotiations.
One business that remains wary of the future is Norscot Seafoods, a fish wholesaler specialising in white and deep-water species, based in Kinlochbervie, Scotland [pictured].
Norscot Seafoods anaging director Donald Morrison told The Parliamentary Review that uncertainty on a sector wide basis had left many operators worrying about what a no-deal scenario could bring, including his own business which exports its produce to the continent.
Morrison said: “On a sector-wide basis, many businesses have been impacted by the uncertainty surrounding the UK’s departure from the EU. No-one is able to properly predict how things will change and many of us fear the effects of new regulations that could follow a no-deal scenario.
“For us, as an exporter to Europe, our produce could be held up at customs and also subject to more paperwork. This would make a large part of our trade more difficult and the ongoing lack of clarity means we aren’t able to plan.”
However, the uncertain nature of the industry means that the sector comes with a natural resilience, and it is this resilience that has grown over many years which Morrison believes will help carry the industry though, whatever outcome the trade negotiations will bring.
“Regardless of Brexit, wild fishing will always be a difficult sector to plan for. When dealing with a non-controlled environment, fish stocks can thrive and then dwindle without warning and you have to adapt and re-evaluate. There is little certainty, but our experience of nearly 50 years helps us find a way through.”
It may prove the case that his business could have mere hours of notice to ready itself for a change in rules, but Morrison was adamant that his company will continue to operate as it always has to the same high standards in any given scenario and is as prepared as it can possibly be for any outcome.
“We don’t have any plans to change how we work and will instead continue to operate at the same consistently high level. We are as prepared as we can be for a worst-case scenario and at this stage can only continue doing what we do best.”
