What are the sticking points in EU trade talks and can they be resolved?

David Frost, the UK’s chief negotiator in the post-Brexit trade deal talks, says that the EU side refuses to discuss legal texts on other subjects until there is agreement on state aid and fisheries, so those are the two sticking points at the moment.

If those are resolved, other problems may emerge when the two sides start to discuss legal wording on subjects on which they currently think there is broad agreement. So what are the problems that need to be resolved (by October, for ratification at the end of the year) in order to reach a deal?

The level playing field. EU jargon for rules against unfair competition. These include everything from minimum employment conditions to environmental standards, but the problem area is the rules on state aid. There is a lot of EU law on what state subsidies are allowed, including on the definition of subsidy in the case of state-owned enterprises, and the EU wants the same rules to apply to imports from the UK.

Fisheries. The UK side accuses the EU of insisting on “arrangements that are like the Common Fisheries Policy”, whereas it says it is looking for a relationship like the EU’s existing deal with Norway. Although the issue of fisheries is an obstacle to the EU discussing anything else, the British accuse the EU of refusing to discuss any other aspect of fisheries until there is progress on the question of quota sharing.

Energy. There is no reason why electricity shouldn’t continue to be traded across interconnectors with France and Ireland.

Road haulage. Michel Barnier, the EU negotiator, accused the UK of wanting its lorries to have access to EU roads without having to follow EU rules, such as those on minimum periods of rest. The British side says it seeks only reciprocal rights. Hard to see this as a deal-breaker.

EHIC cards. The EU seems willing to agree to reciprocal healthcare arrangements that would in effect continue the European Health Insurance Card scheme, which already covers non-EU countries Norway, Iceland, Liechtenstein and Switzerland.

Governance. There are complicated questions about the institutions that would oversee UK-EU trade, and the enforcement of rules, but these should be soluble, as such arrangements are common in free-trade agreements, and the EU has agreed that the European Court of Justice would not have a role.

If the first two questions can be agreed, therefore, it looks as if a deal is possible.