London Daily

Focus on the big picture.
Friday, Jan 02, 2026

'Serious differences remain' over UK-EU trade deal

The UK and EU have said serious differences remain over a post-Brexit trade deal, following the latest negotiations in Brussels.

EU negotiator Michel Barnier said the bloc's position needed to be "better understood and respected" by the UK if an agreement is to be found.

His UK counterpart David Frost said "significant" disagreement remained on "a number of important issues".

The UK has ruled out extending the December deadline to reach a deal.

The latest round of talks, the first to be held in person since the Covid-19 crisis struck, came after both sides agreed to "intensify" negotiations last month.

Negotiations have continued throughout the pandemic via video link. An additional five weeks of in-person talks are planned for July and early August.

BBC Europe reporter Gavin Lee said the latest round of talks had broken up a day early, with a discussion between the two chief negotiators tomorrow cancelled.

Mr Frost said the face-to-face talks had given "extra depth and flexibility" to discussions on a "full range of issues" over trade and a future partnership.

"But they have also underlined the significant differences that still remain between us on a number of important issues," he added.

"We remain committed to working hard to find an early understanding on the principles underlying an agreement."

Equally, Mr Barnier said "serious divergences remain" after the four days of talks, although the EU believed an agreement was still possible.


'Equivalent engagement'

"The EU engaged constructively, as we had already done during the fourth round of negotiations in June," he added.

"The EU expects, in turn, its positions to be better understood and respected in order to reach an agreement.

"We need an equivalent engagement by the United Kingdom."

Mr Barnier underlined that the EU expects "parallel progress" in all areas of the negotiations.

This is a point of difference with the UK - which wants to negotiate separate agreements in areas such as fisheries, alongside a basic free trade deal.

Mr Barnier also reiterated the EU would not agree to a deal without "robust" guarantees on the so-called "level playing field" for competition between business.

He added this would include the area of state support for companies.

Just like when it was an EU member, the UK remains tied to the bloc's "state aid" rules during the 11-month transition period due to end in December 2020.

The UK has not yet unveiled plans for its post-Brexit state aid regime, but PM Boris Johnson has previously said he wants to make it easier for the UK government to provide assistance to struggling firms.

The two sides also remain deadlocked over the issue of fishing rights - an area where they had previously pledged to find agreement by last month.

The EU wants to uphold its existing access to British waters for vessels from member states, to avoid economic disruption for their fishermen.

But the UK wants to hold annual talks with the bloc over access to its waters, as it currently does with nations such as Norway.

Newsletter

Related Articles

0:00
0:00
Close
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
×