Brexit trade negotiations blocked by the EU until Xmas

Reuters

• EU confirms that while "internal" talks about a Brexit trade talk will begin, formal negotiations will now not start until the end of the year.

• EU leaders agree that the UK has not made "sufficient progress" on divorce issues, required to move onto the next phase of talks.

• Theresa May says talks are within "touching distance" of agreement on EU citizens rights and other issues.

• Next phase of negotiations now not expected until Xmas, two months after originally tabled.

LONDON — Brexit trade talks have been delayed until the end of the year after EU leaders agreed that there had not been "sufficient progress" on Britain's divorce from the EU.

European Council president Donald Tusk confirmed that the EU would begin internal talks about trade but would not begin formal negotiations with Britain until later in the year.

In a statement, the European Council agreed that trade talks should begin "as soon as possible" but stated that a "firm and concrete commitment" on the financial settlement was required before formal negotiations could begin.

Tweet Embed:
https://twitter.com/mims/statuses/921308246127857664?ref_src=twsrc%5Etfw
Brexit conclusions adopted. Leaders green-light internal EU27 preparations for 2nd phase. #EUCO

It added that the council would "start internal preparatory discussions" on a trade deal.

EU leaders, who met without May this morning, reportedly took just 90 seconds to agree their position.

Speaking at a press conference in Brussels, May acknowledged that they "still have some way to go" in negotiations but said they were within "touching distance of a deal" on EU citizens rights and other issues.

Watch May: 'We are within touching distance' of a deal.

May added that both sides should take the time to "assess and reflect" on how they could make further progress.

"We must work together to get to a result that we can stand behind and that works for all of our people," she said.

The prime minister has reportedly privately agreed with EU leaders to pay up to a €40 billion divorce bill.

Although the UK has made no official commitment to pay the extra money, the prime minister has reportedly privately assured EU leaders that Britain will ultimately agree to pay up once talks progress onto trade.

May told a select group of EU leaders that she is prepared to pay an additional sum of around €20 billion in order to cover commitments which will stretch into future budget rounds.

NOW WATCH: Meet the three women who married Donald Trump

See Also:

• Angela Merkel was 'furious' after Brexit leaks about Theresa May

• Michel Barnier: A post-Brexit free trade will be limited and take 'several years' to negotiate

• May's government reportedly now wants a Swiss-style Brexit deal

SEE ALSO: Theresa May privately agrees to pay up to €40 billion Brexit divorce bill