EU optimistic, UK less

The EU's chief negotiator yesterday said there had been good progress in trade talks with Britain that aim to prevent a turbulent finale to the Brexit crisis in two weeks' time. 

As talks go down to the wire, optimism has risen that a deal is imminent to keep the goods trade that makes up half of annual EU-UK trade, worth nearly a trillion dollars in all, free of tariffs and quotas beyond Dec. 31.

British Prime Minister Boris Johnson, the face of the 2016 Brexit referendum campaign, must ultimately decide whether to accept the narrow deal on offer from the EU or risk the economic chaos and domestic political applause from eurosceptic supporters that walking away would trigger.

"Good progress, but last stumbling blocks remain," EU chief negotiator Michel Barnier tweeted. "We will only sign a deal protecting EU interests and principles."

Britain however sounded a more pessimistic note over the outcome, saying a "no-deal" scenario was still on the cards.

Johnson's spokesman said negotiators from both sides were working to "bridge the gaps that remain", as the EU indicated a deal was "difficult but possible" by today.

But he added: "Australian WTO (World Trade Organization) exit remains the most likely outcome still."

An EU official, who declined to be named, said disagreements over fisheries were not yet resolved, and many more minor issues still required "polishing". They said that while sealing a deal was possible by the end of the week, they "wouldn't bank on it."

The European Parliament said it could hold an emergency plenary in late December should a deal come together by Monday. If it came later, however, EU diplomats said the bloc might still put it in place from Jan 1 without lawmakers' consent.

Britain joined the EU in 1973, and formally left on Jan 31. Since then, it has been in a transition period under which rules on trade, travel and business remain unchanged, with the country remaining within the EU customs union and single market.