The UK’s Chief Brexit negotiator David Frost said that with less than six months to go until the end of the Brexit transition period, the UK must “continue preparing for all possible scenarios” for once that deadline passes.
His EU counterpart, Michel Barnier, said an agreement “at this point” is “unlikely”.
The comments came after the conclusion of the latest round of talks in London.
Mr Frost said in a statement that “considerable gaps remain in the most difficult areas” – the so-called level playing field and fisheries.
“We have always been clear that our principles in these areas are not simple negotiating positions but expressions of the reality that we will be a fully independent country at the end of the transition period,” he said.
“That is why we continue to look for a deal with, at its core, a free trade agreement similar to the one the EU already has with Canada – that is, an agreement based on existing precedents.
“That is why we continue to look for a deal with, at its core, a free trade agreement similar to the one the EU already has with Canada – that is, an agreement based on existing precedents.
“We remain unclear why this is so difficult for the EU, but we will continue to negotiate with this in mind.”
But he said “despite all the difficulties” he still thought a deal could be reached in September.
EU negotiator Michel Barnier said the UK’s current stances on a number of issues mean a deal at this point is “unlikely”.
He highlighted in particular London’s demands on fisheries, telling a news conference: “The UK is effectively seeking for near-total exclusion of fishing vessels from the UK’s water. That is simply unacceptable.”
He said the “time for answers is quickly running out”, adding: “If we do not reach an agreement on our future partnership there will be more friction.”