The EU and UK see chance to reach a trade pact and agreed to continue talks

The EU and UK, despite missing several deadlines, agreed to give talks another chance and try to break the deadlock on stalled talks over state aid provisions, fisheries and corporate fair play rules and avert turbulent split on no-deal Brexit.

European Union chief negotiator Michael Barnier said that reaching a trade pact is still possible and next few days of talks would be critical.

The transition period ends on Dec 31 when the Britain will finally break with the Euro-bloc, with both sides putting their efforts to give talks any chance and keep the narrow path towards the agreement.

Senior EU diplomats said that there was limited progress in talks about the way of settling any future trade disputes, but prospects for a deal are still limited.

Two sides face chaotic divorce if they fail to clinch a deal before Dec 31, as the damage worth one trillion dollars in annual trade, would significantly hurt both economies and shake financial markets.