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

A guide from John Rentoul to the problems that have to be overcome if there is to be a post-Brexit trade deal

David Frost (left) with his counterpart from the European Union, Michel Barnier (Reuters)

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.