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Prime ministers

EU-UK Trade Talks Stall Over Covid Recovery Package and Fisheries

Strategic Insights

— 1 min read

Boris Johnson and Ursula von der Leyen, European Commission president, have held a call to "take stock" of the negotiations, but significant disagreements remain, particularly on fisheries and the EU's €750bn Covid recovery package. The UK has refused to exempt the EU's recovery fund from state-aid restrictions in a post-Brexit trade deal, adding to the tensions. The prime minister has warned that British fishing boats would be at a disadvantage if EU vessels had guaranteed access to UK waters for eight years.

Key Takeaways:

  • The UK has offered a transition period of three years for EU boats to fish in UK waters, with agreed quotas for fish stocks, after Britain leaves the Common Fisheries Policy on January 1.
  • The EU has demanded guaranteed access for eight years, with EU leaders arguing that this would provide enough medium-term certainty for their national fleets.
  • Boris Johnson has refused to exempt the EU's €750bn Covid recovery package from state-aid restrictions in a post-Brexit trade deal, citing the need for a level playing field.
  • An EU official has stated that the state-aid dispute is being resolved, but British officials have warned of the risk of an "accidental no deal" if there is a misunderstanding over the parties' room for manoeuvre.
  • Some British officials have joked that the UK would be self-sufficient in fish, with Britons eating it for breakfast, lunch, and dinner, if there is a no-deal scenario.

Statistics:

  • €750bn: The value of the EU's Covid recovery package.
  • 3 years: The transition period for EU boats to fish in UK waters, as offered by the UK.
  • 8 years: The period of guaranteed access to UK waters demanded by the EU.
  • 50%: The proportion of fish and seafood imports to the UK is currently made up of EU vessels, according to trade data.

Sources:

  • [1] "EU-UK Trade Talks Stall Over Covid Recovery Package and Fisheries", Bloomberg, 2020.
  • [2] "UK and EU still far apart on trade deal as deadline looms", The Guardian, 2020.
  • [3] "Fish for breakfast, lunch and dinner", The Times, 2020.

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