Michel Barnier

Both sides have confirmed a trade deal on Thursday afternoon. "The deal is there," the British government announced. EU Commission chief Ursula von der Leyen and negotiator Michel Barnier announced a joint press conference. The agreement appears to have averted a harsh economic rift at the turn of the year.

The trade agreement is to regulate economic relations between the island and the continent from January 2021. The most important point is to avoid tariffs and ensure the smoothest possible trade. However, the agreement also covers fishing as well as cooperation on energy, transport, justice, police and many other issues.

The latest talks between European Union and United Kingdon on post-Brexit trade seem to have have ended with limited progress.

While the EU chief negotiator Michel Barnier stated there were no "significant areas of progress", his UK counterpart, David Frost, claimed that "Progress remains limited but our talks have been positive in tone,".