U.K. sees Brexit progress as Von Der Leyen says deal is possible

The U.K. government said a round of informal EU trade talks this week were “useful,” as European Commission President Ursula von der Leyen told the Financial Times she’s “convinced” a deal is possible.

The discussions “covered a broad range of issues and some limited progress was made,” the government said in a statement late Thursday.

The positive noises from both sides contrast with the saber-rattling in recent days, as Prime Minister Boris Johnson’s government introduced a draft law to Parliament that tore up sections of the Brexit deal he reached less than a year ago, and the EU threatened to retaliate with legal action.

Even so, the U.K. said “significant gaps remain in key areas, including fisheries and subsidies.”

The two sides are trying to reach a trade deal to take effect once Britain’s post-Brexit transition period closes at the end of the year. But they’ve become snarled over the U.K.’s desire to curb the access of EU fishing vessels to its waters, and over the so-called level-playing field—in particular, what EU state aid rules the U.K. will have to follow after leaving the bloc.

“We will continue to work hard to bridge those gaps in talks next week, without compromising our fundamental position of being an independent country,” the U.K. said.

Von der Leyen told the FT that while Johnson’s decision to introduce legislation allowing his government to breach the terms of the Withdrawal Agreement struck between the two sides was “a very unpleasant surprise” and a “distraction,” the focus should remain on striking a trade deal. “I am still convinced it can be done,” she said.

Negotiators are trying to come to an agreement by mid-October in order to provide time for it to be ratified by year-end.