Understanding Brexit: a visual guide to the negotiations between the UK and the European Union

Britain left the EU in January, 2020. Since then, the two have been locked in negotiations on implementing their divorce settlement and finding a new trade partnership.

Divorce talks started after the 2016 Brexit referendum. Arranging customs and other checks on the sensitive Irish frontier was arguably the main stumbling block. In the end, the two sides agreed Northern Ireland would continue following some EU rules to avoid extensive border controls on the island of Ireland.

Since then, however, British Prime Minister Boris Johnson proposed a new law known as the Internal Market Bill. London says it’s needed to allow the four UK nations to trade freely if there is no new pact with the EU.

But, if adopted, it would undermine parts of the Brexit treaty by simplifying trade between Northern Ireland and the British mainland in a way the EU fears could hurt its own market.

This could put the fragile peace in Northern Ireland at risk if it leads to heavier border checks with the Republic of Ireland, an EU member. The bloc hence says it will not enact any new trade arrangement with Britain if the Internal Market Bill stands as is.

A trillion euros worth of trade a year is at stake if Britain and the EU fail to agree new trade provisions by the end of the year. That’s when current arrangements to trade without tariffs or quotas end. There are three main sticking points in trade talks: ensuring a level playing field, safeguarding fishing rights and settling future trade disputes.

Level playing field is about fair competition. It covers social, labour and environmental standards, as well as state aid regulations. If both follow the same rules, they can trade freely. While Britain wants the liberty to set its own policies, the EU wants London to commit now to rules that would guide future decisions.

Fisheries is crucial to France. The EU wants guarantees of how much it can fish in UK waters. But Britain demands full control of its waters and who fishes there from 2021.

And how will future disputes be solved? The EU seeks the right to curb UK exports if London flouts their new trade partnership. Britain says such retaliation would be excessive.

Both the EU and Britain say time is almost up to get an agreement. But they would go on talking into November, as neither wants to take blame for any damaging economic split.