(Bloomberg) -- The U.K. may have already given up on the prospect of getting a trade agreement with the European Union, one of the bloc's most senior officials said, adding to signs of increasing friction in the negotiations.
“We're not making much progress at the moment,” EU Trade Commissioner Phil Hogan told the European Parliament's trade committee on Thursday in Brussels. “Perhaps the United Kingdom has come to the conclusion that there's not going to be a deal.”
Negotiations on the future relationship resume next week with neither side expecting significant movement and the risks growing of a rupture at the end of the year. Unless they can bridge their differences before then, Britain will leave the EU's single market and customs union without a trade deal in place. That would lead to disruption and extra costs for businesses and consumers already reeling from the coronavirus.
“We hope that we will see a bigger effort than we have seen to date from the United Kingdom side to move on certain issues, because we stand ready to move toward some of the solutions that are required as well on many issues of concern to both sides,” Hogan said. “Speed is of the essence because time is short.”
Read More: EU Has Bigger Problems to Worry About Than Brexit Gridlock
Hardly anything has shifted on the most fundamental disagreements since talks began in March. Britain won't countenance limits on its regulatory powers, which the EU says are necessary to ensure a level playing field for businesses. Meanwhile, the EU says it won't agree to a trade accord if the U.K. refuses to rule out undercutting the bloc's standards.
“We have a spirit in the European Union to try and do a deal, but we're not getting much traction from the United Kingdom negotiators to date,” Hogan said. “Perhaps this is more strategy than substance, but we certainly need confidence-building measures in the next round of negotiations next week.”
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