Coronavirus latest: Michael Gove claims Covid-19 crisis could ‘increase chances of EU trade deal’ The Chancellor of the Duchy of Lancaster rejected suggestions the transition period would need to be extended

The outbreak of the coronavirus pandemic should “concentrate the minds of EU negotiators” and increase the chances of the UK and Brussels hammering out a trade deal, Michael Gove has claimed.

The Chancellor of the Duchy of Lancaster rejected suggestions the transition period would need to be extended, insisting the Covid-19 crisis would instead strengthen the case for striking a deal by 31 December.

Asked by the Future Relationship with the EU Committee of MPs whether it would be possible to stick to the existing timetable for negotiations, Mr Gove replied: “We believe it is still entirely possible to conclude negotiations on the timetable that has been outlined.”

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Limited progress

He then added: “I think the coronavirus crisis should concentrate the minds of EU negotiators, underlining the vital importance of coming to a conclusion.”

Mr Gove admitted, however, that only “limited progress” had been made after the second round of trade talks, amid growing concerns in Brussels that the UK is “not engaging” on the key issues.

The Government has repeatedly stressed it will not seek an extension to the transition period despite the ongoing coronavirus emergency, and the significant impact it will have on the economies of both the UK and EU member states.

Explaining the stance, Mr Gove told MPs extending the transition period would mean “we would have to pay the EU money, which many of you might think would be better spent on the NHS or supporting our economy”.

But the Brexiteer appeared to distance the Government from its threat to walk away from the trade talks by the end of June if the “shape of a deal” could not be seen.

Asked whether the UK was still planning to abandon the talks in just two months’ time, Mr Gove said he did not want to “pre-empt” the Government’s response.

His comments came as the latest round of talks hit a fresh impasse, with warnings from Brussels that the negotiations are on course to fail.

‘Political realities’

But Downing Street accused the EU of failing to grasp the “political realities” of the UK’s status as an independent sovereign state, and demanded leaders of member states to intervene to push the talks forward.

“We are ready to keep talking but that does not make us any more likely to agree the EU’s proposals in areas where they are not taking into account the UK’s status as an independent state,” the Prime Minister’s official spokesman said.

“All we are seeking is an agreement based on precedent which respects the sovereignty of both sides.

“Clearly there will need to be political movement on the EU side to move negotiations forward, particularly on fisheries and level playing field issues, in order to help find a balanced solution which reflects the political realities on both sides,” the spokesman added.