Michel Barnier: Serious issues remain over trade deal

There remain “serious” differences between the UK and EU after the first round of trade talks, the bloc’s chief negotiator has said.

Michel Barnier said “very difficult” areas needed to be resolved, but a “good agreement for both sides” remained possible.

He said there were disagreements over competition rules, police co-operation, and how a deal would be enforced.

Mr Barnier also dismissed UK proposals on fishing as “impractical”.

A UK government spokesperson said there were “significant differences” between the two sides in some areas, but talks had been “constructive”.

“These are going to be tough negotiations – this is just the first round,” they added. “We now have a good idea where both parties are coming from.”

Speaking to reporters in Brussels at the end of this week’s first round of trade negotiations, Mr Barnier said points of difference had “come as no surprise”.

Talks will move to London later this month for the second round. Both sides set out their respective positions in opposing strategy documents last month.

The UK has warned it will walk away from trade talks in June, when both sides are due to review progress, unless there is a “broad outline” of a deal.

More than 100 British negotiators are heading home from Brussels after the first week of talks with the EU over the future relationship with the UK.

The two sides sound quite positive and appear to agree on some technicalities in areas like transport and energy.

But there are some big disagreements about some big things.

The post-Brexit transition period, under which the UK will continue to follow EU rules, will end in December and Prime Minister Boris Johnson has vowed not to extend it.

Mr Barnier warned the UK against under-estimating the challenges posed by the end of the transition, which he said would be “very different” to those which accompanied the UK’s exit from the bloc at the end of January.