MNI SOURCES: UK Fish Offer Improves Chances Of EU Trade Deal

The UK has moved a long way towards EU demands on fisheries, improving the prospects of a trade deal, although Brussels is expected to hold out for further concessions, according to sources in touch with both sides of the negotiations.

The UK is now understood to accept a 35% cut in the share of fish caught by EU boats in UK waters at the end of a five-year transition period – a significant move from the 60% reduction, brought down to 45% at the weekend, and the three-year transition it had long insisted on.

There are indications that the UK offer is closer still to the EU position, with sources referring to it as a 30% cut or a 30-35% reduction. The EU had improved its offer of an 18% cut in its quotas fished in UK waters to 25%, and trimmed a seven-year transition to six years.

FISHING FOR MORE

One source told MNI that the EU-27 were likely to interpret the erosion in the UK government's position as evidence that Prime Minister Boris Johnson does not want to walk away from a trade deal, giving France and other EU coastal states who fish in UK waters every incentive to press for more.

"The Dutch have told me it's still no at 35% for (Dutch Prime Minister) Mark Rutte," this source said.

He also pointed to continuing difficulties in a third area of contention on fisheries between the two sides – the framework for what happens to quotas beyond the fisheries transition period. The Dutch are among EU member states demanding "a much bigger bazooka against British misbehaviour on quotas at the end of the transition than just tariffs elsewhere to the same value," according to this source.

EU sources told MNI earlier today that Brussels could reduce the transition period to six years and that outstanding level-playing field issues were nothing more than a distraction. Reports on the UK side have raised concerns about the EU seeking to exempt Covid recovery funds channelled through the European Commission from state aid rules.