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Michel Barnier, the EU’s chief Brexit negotiator, has told opposition MPs at Westminster that Brussels remains “open” to extending the transition period by up to two years, as talks on a future trade deal continue to founder. Mr Barnier’s letter, sent on Monday, came as David Frost, his British counterpart in talks on a future UK/EU relationship, admitted that both sides remained far apart on issues including fisheries and Brussels’ demands for a “level playing field” on state aid, tax, environmental and labour laws.
Mr Frost, giving evidence to MPs on the parliamentary committee on the future relationship with the EU on Wednesday, admitted that agreement on a post-Brexit fishing regime — viewed as crucial to unlocking a trade deal — was unlikely to be secured by the target date of June 30. “It’s not an absolute requirement,” he told the MPs. “I’m beginning to think we might not make it by June 30 but we will keep on trying.”
Against the economic chaos caused by coronavirus, Mr Barnier again offered Britain the chance to avoid further business upheaval by extending the transition period, agreed as part of Boris Johnson’s Brexit deal last year, until the end of 2022. Mr Barnier wrote to Westminster opposition leaders and said a two-year transition extension was still available © European Commission/Twitter In his letter to opposition leaders including Ian Blackford of the Scottish National party and Ed Davey of the Liberal Democrats, he said: “Such an extension of up to one or two years can be agreed jointly by the two parties. The European Union has always said that we remain open on this matter.”
But Mr Frost told MPs he was working under the “firm” instruction from Mr Johnson, the UK’s prime minister, that the transition period would not be extended beyond December 31. Mr Frost was flanked by Michael Gove, cabinet office minister, who faced tough questioning on whether British business would be ready for a new customs and regulatory regime for trade with its biggest partner by the end of the year. Hilary Benn, the Labour MP who chairs the committee, raised a Financial Times article in which freight industry leaders warned that Britain was likely to miss targets to hire and train the 50,000 new customs agents industry estimated would be required to handle the new bureaucracy....