Brexit trade deal is within reach, says Michel Barnier

A Brexit trade deal is “within reach”, Michel Barnier said before offering to meet all of the UK’s conditions to reboot negotiations with Brussels.

The chief negotiator said that both the UK and EU would have to compromise to get the agreement done in a conciliatory speech to the European Parliament in the Belgian capital.

Mr Barnier said, “We want a deal that will be mutually beneficial to both parties in respect of the autonomy and sovereignty of both sides. A deal reflecting a balanced compromise."

He added, “Despite the difficulties we've faced an agreement is within reach. If both sides are willing to work constructively, if both sides are willing to compromise.”

The speech was intended to satisfy a British demand that Brussels makes clear it will compromise, as well as the UK, to get a deal before negotiations resume.

UK Ministers welcomed Mr Barnier’s recognition of UK sovereignty, as the pound jumped to a one week high against the US dollar.

Mr Barnier also repeated his promise that the EU would negotiate “day and night” on all subjects, and on the basis of common legal texts, which were the UK’s other conditions before returning to the negotiating table.

The EU has an end of October deadline for the deal to be agreed. That will give time for the agreement to be ratified in the 10 weeks before the end of the year and the Brexit transition period and so avoid no deal.

Mr Barnier said, “We will seek the necessary compromises on both sides. In order to do our utmost to reach an agreement, we will do so right up until the last day that it's possible to do so, our doors will always remain open right up until the very end.”

Boris Johnson declared he was ready to “embrace” no deal on Friday, and that trade talks were over unless there was a “fundamental change” of approach from the EU.  It was not immediately clear if the speech was enough for Britain to return to trade negotiations.

Lord Frost, Britain's chief negotiator, is expected to speak to Mr Barnier again by phone today - the third day running they will have spoken - with one Whitehall source saying they were "cautiously optimistic" that negotiations could be back on.

Ministers are currently studying the text of Michel Barnier's speech.The British optimism comes from Mr Barnier's public admission that there needs to be "compromise on both sides".

It is the crucial concession Number 10 has been looking for since EU leaders called on the UK to “move” on the major sticking points of fishing, the level playing field guarantees and the deal’s enforcement.

“It sounds incredibly positive that he’s talking about the sovereignty of the United Kingdom,” UK Business Minister Nadhim Zahawi told Bloomberg television.

The Telegraph exclusively reported on Tuesday that Mr Barnier could be in London for negotiations as early as Thursday.  A Brussels source added that Mr Barnier could come on Thursday but "it is not confirmed".

One senior UK Government source said yesterday ministers were "hoping to hear more from the EU" before the end of this week. A second source said Mr Barnier could be in London on Thursday.

Ministers have some reservations about Mr Barnier’s tough language over the level playing field guarantees. He said it "remains a fundamental concern".

But Mr Barnier also praised British negotiators for exploring ways to soothe EU anxieties over fair competition.

“The past few weeks we've seen the UK are willing to look at this demand and to move forward and shift. They're willing to do things in a different way to what exists in current trade deals among other countries,” he said.

Mr Barnier also warned the EU “would remain firm and determined when it comes to defending the principles and the interests of each of the EU Member States and the European Union itself.”

He said that there would not be a trade deal unless a compromise was reached on fishing rights.

“There will not be a trade deal without a fair solution for fishermen on both sides and we will insist on this right up until the very end,” he said.

He added, “There needs to be mutual access to waters, and there needs to be a fair distribution of quotas for fishermen on both sides.”

Charles Michel, the European Council president, said, “Brexit was not our decision. And it was not our fishermen's decision. Stopping access to UK waters would cause extraordinary damage to our fishing fleets.”

“Yes, we want to keep access to UK waters for fishermen. Exactly like the UK wants to have access to our huge and diversified markets for companies.”

“The UK has a big decision to make,” Mr Michel said, “We want to deal, which is fair and balanced, but we’re also ready in case of no deal.”