A Better Climate in Brexit Talks, but Only Modest Progress

The negotiation environment between the European Union and the United Kingdom is improving, with both sides making moves to buy their negotiators more time. But the lack of significant progress on disputes related to fishing rights, as well as London’s future alignment with EU rules on issues such as state aid to companies, means that a no-deal British exit from the single market in January is still possible. In recent days, London and Brussels have exchanged proposals on both issues, but have not reached a deal. There will not be a free trade agreement unless these issues are resolved. EU and U.K. officials have said that the parties are considering moving to the so-called “tunnel phase” of the negotiations, where technical issues are discussed without issuing updates to the media. If confirmed, this would be a strong sign that an agreement is probable.  ...