MNI SOURCES: UK Seen Set On Running Down Brexit Talks Clock

--London Still Unwilling To Engage On Level Playing Field, Sources Say

By David Thomas

     BRUSSELS (MNI) - Some officials in Brussels are becoming more convinced the

UK does not want a free trade deal after the end of its Brexit transition period

in December, as London continues to stonewall the EU negotiating team on the

subject of a level playing field, sources close to the negotiations told MNI.

     One official said there might be a possible landing zone in efforts to

finesse the language on the difficult issue of agreeing common rules and

standards to prevent UK businesses undercutting their EU rivals or vice versa,

but added that the British strategy was unclear.

     "There is no possibility to discuss the substance of this with the UK. We

just have the rhetoric about not accepting EU rules," the EU source said. "But

this is not really what we are proposing, we just want the UK to commit to the

same high standards that they have now."

     The source noted that London could be manoeuvring to "do a deal based on

softer language around the level playing field," but there had to be political

willingness from the UK to engage on the issue.

     The best reading of the UK game plan might be to allow talks to fail while

"blaming it all on Covid,'" another Brussels-based official said, although he

also noted there was still room for compromise.

     "Where there is a will there is a way. We are very good at this type of

exercise," the official said.

     Recent talks between chief negotiators Michel Barnier and David Frost have

shown at least an awareness of the need to compromise on other key sticking

points, such as fisheries and governance.

     --TIMING

     Even if some movement can be achieved on level playing field rules, it may

take time to politically prepare the ground given the strength of UK

politicians' opposition to concessions, the first official said, adding "I don't

think the UK will want to move on that yet"

     The first EU source also rejected ideas of a so-called 'Australian'-style

deal mooted by UK Prime Minister Boris Johnson, under which there would be no

overarching FTA but a series of industry-specific agreements.

     "One of those things we always made clear we would never do. Absolutely

not," adding that such a solution would only work as a mitigation effort in the

event of a no-deal scenario.

     The same official noted much preparation had already been made for the

contingency of no-deal and that this would intensify if there was still no

agreement by October.

     Following this week's talks in London, a further round of trade

negotiations between the UK and the EU will start on July 20, with another

scheduled for August.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

[TOPICS: M$B$$$,M$E$$$,MC$$$$,MT$$$$,MX$$$$,MGB$$$]