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UPDATED: UK and EU abandon deadline to continue Brexit trade deal talks

Britain's Prime Minister Boris Johnson and EU chief Ursula von der Leyen have agreed to carry on post-Brexit trade talks after a call between leaders on Sunday.

UPDATED: UK and EU abandon deadline to continue Brexit trade deal talks
An EU flag and Union flag flying near Big Ben, London. Photo: AFP

In a joint statement, Boris Johnson and European Commission President Ursula von der Leyen said it was “responsible at this point to go the extra mile”. The pair discussed “major unresolved topics” during their call.

The two sides had said Sunday was the deadline for a decision on whether to continue with talks, with Britain due to leave the EU single market in 19 days.

On Saturday, Britain took the dramatic step of announcing that armed naval vessels will patrol its waters from January 1 to exclude European crews from the fisheries they have shared, in some cases for centuries.

Brussels' tone has been less bellicose, and von der Leyen has made it clear that the EU will respect UK sovereignty after Britain's post-Brexit transition period, but neither side is yet ready to compromise on its core principles.

Without a trade deal cross-Channel trade will revert to WTO rules, with tariffs driving up prices and generating paperwork for importers, and the failed negotiation may poison relations between London and Brussels for years to come.

On Wednesday, after what von der Leyen described as a “lively and interesting” working supper with Johnson in Brussels failed to find a breakthrough, the EU chief said they had agreed to “come to a decision by the end of the weekend”.

But if the talks are to be extended again, it would only be for “for a maximum of a few days”, France's Minister for Europe Clement Beaune told the newspaper Journal du Dimanche. “We're already in extra time,” he warned.

Much of the text of a possible trade deal is said to be ready, but Britain has rejected Brussels' insistence on a mechanism to allow it to retaliate if UK and EU law diverge in a way that puts continental firms at a competitive disadvantage.

Poisoned ties

“The defence of the single market is a red line for the European Union. What we have proposed to the United Kingdom respects British sovereignty. It could be the basis for an agreement,” a senior EU source said, echoing an earlier von der Leyen statement.

In London, a government spokesman stressed Britain was ready to leave the union and handle its own affairs after 47 years of close economic integration and that “as things stand, the offer on the table from the EU remains unacceptable.

“The prime minister will leave no stone unturned in this process, but he is absolutely clear: any agreement must be fair and respect the fundamental position that the UK will be a sovereign nation in three weeks' time,” the source said.

On Saturday, Downing Street had said the government had a playbook that “maps out every single foreseeable scenario” for potential problems after December 31, and “no one needs to worry about our food, medicine or vital supply chains”.

Johnson has said it is “very, very likely” talks will fail, and EU officials have expressed similar pessimism, but Frost and Barnier talked late into Saturday night and resumed on Sunday.

As talks continued in Brussels this weekend, some hardline UK Conservative MPs sought assurances from Johnson that the navy would be deployed to protect British waters. But others warned against needless provocation.

“We need to be building alliances not breaking them apart,” said Tobias Ellwood, a former army captain who heads the UK parliament's defence select committee.

Border bureaucracy

WTO terms would mean tariffs and quotas, driving up prices for businesses and consumers and the re-introduction of border checks for the first time in decades.

That has already raised the prospect of traffic clogging roads leading to seaports in southeast England, as bureaucracy lengthens waiting times for imports and exports.

Transport companies have also warned that EU member Ireland could see import volumes shrink in the event of new customs procedures for goods routed through Britain.

REMINDER: What Brits in Europe need to know about travel after December 31st

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TRAVEL NEWS

France may cut Channel islands ferry service after post-Brexit collapse in visitor numbers

Visits to the Channel islands from France have halved since Brexit, and French local authorities say they may be forced to cut the regular ferry service, asking for the passport requirement to be waived for French visitors.

France may cut Channel islands ferry service after post-Brexit collapse in visitor numbers

Travel to and from the Channel islands – which are British crown dependancies – has reduced significantly since Brexit, when passports became a requirement for those travelling in and out of the islands and their ports.

Now the president of the local authorities in the Manche département of France has asked that passport requirements be lifted, with hopes of increasing travel to and from the islands.

Jean Morin told Ouest France that there has been a “considerable reduction in the number of passengers on routes between the Channel ports and the islands” and as a result the ferry service between France and the islands was seriously in deficit.

“On these lines, we will never make money, but we cannot be in deficit”, explained the Morin. 

He added that if a solution is not found by the deadline of May 1st, 2023, then local authorities will stop funding the shipping company DNO, which runs the Manche Îles Express ferry service.

“If the passport requirement is not lifted by then, we will have no choice but not to renew the service contract for 2024-2025”, Morin told Ouest France.

Only around half of French people have a passport, since the ID card issued to all adults is sufficient to travel within the EU. 

READ MORE: Ask the Expert: How Brexit has changed the rules on pensions, investments and bank accounts for Brits in France

DNO re-launched operations in April and since then, the company, and by extension the département – who plays a large role in funding it via a public service delegation – has been losing significant funds.

According to Franceinfo, the number of passengers has been cut in half since passport requirements were introduced. Franceinfo estimates that for one ticket for one passenger costing €30, the département spends €200.

According to Morin, the ideal solution would be to require a simple ID for tourists seeking to take just day-long or weekend-long stays on the islands – which reportedly represents at least 90 percent of the boats’ usual passengers.

“The Jersey government is working hard on the issue and is waiting for an agreement from London and the European Union. There is the possibility that things could move quickly”, Morin told Franceinfo on Tuesday.

Prior to the Covid-19 pandemic and Brexit, boats going to and from the French mainland carried at least 110,000 people per year. In 2022, only 40,000 passengers made the journey, Olivier Normand, the sales manager of Manche Îles Express, told Actu France.

Normand had expected the decline, however. He told Actu France that the company had taken a survey, which found that almost half (between 40 and 50 percent) of their clientele did not have a passport. 

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