Fish, subsidies remain critical in Brexit talks, EU says

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FILE PHOTO: EU leaders summit in Brussels
FILE PHOTO: EU leaders summit in Brussels

BRUSSELS (Reuters) - A deal on fisheries and rules governing state subsidies are the two critical issues in negotiations with Britain, European Commission President Ursula von der Leyen said on Thursday following a video conference with Canada's prime minister.

"We are making good progress but the two critical issues, level playing field and fisheries, there we would like to see more progress," Von der Leyen told a news conference.

"We are now deep into how we would construct a system that is fair for both sides ... which is a sine qua non for the UK to have access to the single market that is tariff free and quota free," she said.

(Reporting by Robin Emmott; Editing by Alison Williams)