'No progress' in latest Brexit talks as UK economy reels from pandemic

The European Union's chief negotiator says the latest round of talks between Britain and the EU have made no significant progress this week, saying London and Brussels remain far apart on fisheries and other matters.

"This week, there have been no significant areas of progress... We cannot go on like this forever," Michel Barnier said on Friday (local time) at a media conference.

Mr Barnier says both sides must agree on a deal before October 31.

Britain's chief negotiator says progress had been limited on a free trade deal.

"Progress remains limited but our talks have been positive in tone," David Frost said.

"Negotiations will continue and we remain committed to a successful outcome."

"We are close to reaching the limits of what we can achieve through the format of remote formal," Mr Frost said.

"If we are to make progress, it is clear that we must intensify and accelerate our work."

Following four days of video discussions because of the coronavirus pandemic, the two sides remained at loggerheads on a number of issues, including on regulations for businesses.

The UK left the political institutions of the EU on Jan 31 but remains inside the EU's tariff-free economic zone until the end of the year.

That so-called transition period can be extended by two years but a request to do so has to be made by July 1. Prime Minister Boris Johnson has repeatedly said he won't ask for an extension.

The most likely prospect for an imminent breakthrough in talks now rests on a high-level political meeting between Mr Johnson and the EU's top official, European Commission President Ursula Von der Leyen, scheduled for later this month.

Though that looks set to be another video conference, the hope, particularly on the UK side, is that more face-to-face discussions can move things forward in the months ahead.

"We are close to reaching the limits of what we can achieve through the format of remote formal rounds," Mr Frost said.

If the two sides don't reach an agreement by the end of the year, tariffs and quotas will be slapped on trade between the two sides.

That would represent another economic shock – on top of the pandemic – that most economists think would affect Britain more. Cars exported from one side to the other, for example, would face a 10 per cent levy.

With AAP and Associated Press.