"Progress has been made in a huge number of areas, but ... there is still one or two sticking points on state aid, the level playing field and fisheries," Gove told parliament.

"But I think with goodwill on both sides, we can achieve resolution, and I certainly know that this government is determined to do. But of course, we have clear red lines that we will not cross."

(Reporting by William James and Michael Holden, writing by Elizabeth Piper; editing by Guy Faulconbridge)