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NEW: Michel Barnier has told EU member states there has been some movement on the level playing field, and on dispute resolution, but that fisheries talks remain "very difficult" @rtenews understands. Sources say this could go through this week and beyond...
2/ Acc to one senior source, Barnier said there was acceptance that the EU could take retaliatory measures against the UK if it diverged from EU standards but that it would not be "autonomous", in other words, before taking action there wd need to be some dialogue with the UK
3/ "It's the operationalisation of that principle that is now under discussion," acc to source. The EU see this is progress as for a long time the UK refused to accept that if they diverged the EU had a right to do something, says the source
4/ "That principle has now been accepted, but how it is implemented is the nub of the dicussion."
5/ From the EU perspective the concern is the UK might change its rules to make it more competitive, says the source. "Barnier seemed positive that the principle of couter-measures had been agreed."
6/ It seems there has been movement on both sides, therefore, as originally the EU wanted the autonomous right to react without reference to the UK. Now there has to be some sort of dialogue, acc to the source
7/ On governance, the principle of cross-sectoral retaliation appears to have been agreed, acc to source. ie, either side could retaliate in another sphere if it felt there was a trade distorting divergence
8/ Michel Barnier said there had been no real developments on fisheries and talks have been "very difficult".
9/ The latest stumbling block is a UK proposal on ownership of UK vessels. UK is proposing tighter restrictions on where fish are landed and the nationality of crews, ie the UK wants the right to regulate where fish caught in their waters would be landed
10/ Currently a lot of fish caught in UK waters are landed in Spain or France for processing - London proposing to repatriate that practice. UK also wanting tougher regulations on who crews the fishing boats.
11/ Barnier said these discussions were "extremely difficult". Spain and the Netherlands said to be very unhappy about these latest measures.
12/ Following Mr Barnier's briefing of EU ambassadors, a number of member states brought up the issue of the provisional application of the treaty if negotiators run out of time.
13/ Barnier said there could be a short period in January of No Deal and this was countered by a number of capitals who suggested that Provisional Application of the treaty could get around this problem
14/ This will antagonise the European Parliament however. It's understood the European Commission President Ursula von der Leyen has given a political commitment to the EP that this would not happen.
15/ It's understood that the Council legal service intervened this morning to say that the Lisbon Treaty makes it clear that the sole right of deciding whether or not to provisionally apply a treaty belongs to the Council (ie member states) at the moment of signature.
16/ "All hell might break loose in the parliament, but you could legally do it," says source.
17/ Mr Barnier did not spell out when the talks would conclude. However, I understand member states are assuming that this process could go on till the end of this week. "Through this week, then we'll see where we are," acc to source
