December 23, 2020 — European Union and British negotiators closed in on a trade deal Wednesday with only a disagreement over fishing remaining, raising hopes a chaotic economic break between the two sides on New Year’s Day could be averted even as soon as before midnight, officials said.
After resolving a few remaining fair competition issues, negotiators were dealing with EU fisheries rights in U.K. waters as they worked to secure a deal for a post-Brexit relationship after nine months of talks.
Two EU sources said the negotiations were in a final phase now, with one saying: “I expect to see some white smoke tonight.” The official asked not to be identified because the talks were still ongoing.
Customs checks and some other barriers will be imposed under whatever circumstances on Jan. 1, but a trade deal would avert the imposition of tariffs and duties that could cost both sides hundreds of thousands of jobs. Britain withdrew from the EU on Jan. 31, and an economic transition period expires on Dec. 31.
British Prime Minister Boris Johnson has always insisted the U.K. would “prosper mightily” even if no deal were reached and the U.K. had to trade with the EU on World Trade Organization terms.