Post-Brexit deal: EU asks UK to overcome obstacles

The European Union warned that the UK hasn’t moved sufficiently to overcome the three main obstacles to a post-Brexit trade deal as three of the bloc’s leaders called for contingency plans to be stepped up in case one isn’t reached. At a meeting in Brussels on Friday, envoys from the EU’s 27 member states were told that progress has been slow, and negotiations could now slip into December, according to people in the meeting who asked not to be identified because they weren’t authorized to speak publicly. The pound trimmed its earlier gains. “We are working hard to get an agreement and to find solutions that fully respect U.K. sovereignty” a British official said.

Late on Thursday, the leaders of France, Belgium and the Netherlands called on the bloc to make contingency plans in case a deal fails to materialize. If that happens, businesses and consumers will face disruption as tariffs and quotas return. Officials said talks are at a delicate stage and envoys were not briefed in detail so as not to undermine the negotiations and put possible compromises at risk. Some progress has been made on state aid, two EU officials said, but on other so-called level playing field issues, the U.K. is still resisting EU pressure include ratchet clauses -- which would force Britain to raise its legal standards in areas including environment and social protection if EU legislation changes in the future.