Hopes grow for post-Brexit trade deal

A post-Brexit trade deal between the United Kingdom and the European Union became more likely on Wednesday after the EU chief said a "narrow path" to an agreement had opened up, and as reports surfaced of British lawmakers being told to prepare for a crucial vote next week.

The rare glimmer of good news follows months of wrangling between London and Brussels over the trading arrangement that should follow a transitional period that ends on Dec 31, which ensured trade flowed freely following the nation's January exit from the bloc.

With the deadline days away and the two sides at an apparent impasse, EU Commission President Ursula von der Leyen said the "next few days are going to be decisive".

The EU's most senior politician told lawmakers in the European Parliament that negotiators will work night and day to agree a deal.

"As things stand, I cannot tell you whether there will be a deal or not," she said. "But there is a path to an agreement now-the path may be very narrow, but it is there."

The tone of her comments was more optimistic than official observations have been in recent days and followed a report from the BBC that Prime Minister Boris Johnson had told his Cabinet on Tuesday he still wants a deal.

Members of the British Parliament have been told they may have to attend previously unscheduled sessions of the House of Commons next week.

The Financial Times said the sessions suggest a post-Brexit trade deal could be ready for debate and a vote before Christmas.

The value of sterling rose on the news on Wednesday and was trading at $1.352 at one point, which was close to its 2020 peak.

Andrea Leadsom, a member of UK Parliament who was a prominent hard-line advocate of the country leaving the EU during the 2016 referendum campaign, seemed to indicate that euro skeptics such as herself could even end up supporting a trade deal with the bloc.

She told the Financial Times:"The key has always been to make sure that any deal is fair to both sides and doesn't give one side undiluted power and is a relationship between two sovereign bodies."

Earlier, Michel Barnier, the EU's chief negotiator, said on Monday during a video call with ambassadors from the bloc's 27 member nations that a deal could be approved before the Dec 31 deadline, if one is struck soon.

The Guardian newspaper said on Wednesday it understands an agreement is now more likely, in part, because Downing Street has "watered down" its demands around fishing rights.

The British Parliament was scheduled to begin its Christmas break on Thursday, but could be recalled at short notice and as early as next week to legislate if a deal is reached.

Agencies contributed to this story.