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Xinhua News Agency, London, October 16(International observation) Negotiations between the United Kingdom and the EU: the difficult road ahead still has hope
Xinhua News Agency reporter Wang Huihui and Li Jizhi
The leaders of the EU countries held a meeting on the 15th to discuss the British “Brexit” issue. British Prime Minister Johnson declared on the 16th that since the EU summit ruled out the possibility of reaching an agreement similar to the EU-Canada Comprehensive Free Trade Agreement with the United Kingdom, the United Kingdom will be prepared not to reach a agreement with the EU.
Analysts noted that Johnson previously set Oct.15 as the deadline for Britain and Europe to reach a trade deal, while the European Union set Oct.31 as the deadline. Britain’s “Brexit” transition period is about to end on December 31. Faced with a possible “no-deal Brexit” double-loss situation, the two sides still hope to reach an agreement before the deadline.
Harsh speech
Britain officially “Brexit” on January 31 this year, then entered an 11-month transition period. Britain and the EU began negotiations on future relations with the free trade agreement as the core in March, and they hope to reach an agreement during the transition period. Johnson declared in early September that October 15 is the deadline for the UK to reach a trade deal with the European Union. If no agreement can be reached by then, “the two parties should accept this fact.”
European Union leaders met in Brussels on the 15th and issued an announcement that evening, calling on the United Kingdom to take the necessary measures to advance negotiations on future relations between the United Kingdom and Europe. The announcement stated that on some issues of concern to the EU, the results of the negotiations were insignificant and were not yet sufficient for the two sides to reach an agreement; the EU is ready to work hard to reach an agreement with the UK, “but not at all costs”.
The British side responded strongly to the EU statement. The British prime minister’s spokesman said that the EU summit marked the end of negotiations between the two sides and that there would be no need for further discussions if the EU did not fundamentally change its position. Johnson also asserted that unless the European Union changes course and makes “fundamental” changes, the UK is prepared to leave the European Union without a deal.
In this regard, Barnier, the main European Union negotiator responsible for Britain’s “Brexit” issues, said the negotiations are not over yet and the EU will work hard “until the last day.” He suggested that the British side continue negotiations until the end of October. European Commission President Von der Lein said on Twitter that the EU is ready to continue negotiations, but not at all costs. He said that the EU negotiating team will travel to London to continue negotiations next week.
Three big differences
According to the above statement issued by the UK and Europe, the negotiations between the two parties have advanced recently, but there are still “significant” differences, especially in the areas of fishing, level playing field and performance management. The leaders of both sides instructed their main negotiators to intensify their work to try to bridge these differences.
Regarding the issue of fisheries, the conflicts between the two parties focus mainly on the access and quotas of fishing vessels from EU countries in British waters, and France is considered the least willing to compromise. French President Macron said that the interests of French fishermen should not be sacrificed. The UK needs a free trade agreement more urgently than the EU and must do more.
Analysts noted that although the economic importance of fishing is not prominent, it is a political issue related to votes in the UK and in some EU countries. If the EU-UK deal is “stranded” due to differences in fisheries, it will harm the interests of both parties.
On a level playing field, the EU believes that the UK must comply with EU rules if it is to enter the EU single market with a population of over 400 million. Otherwise, UK companies can gain an additional competitive advantage through their own looser supervision and excessive national subsidies. The UK responded that the EU is trying to impose rules on the UK and that the EU does not have these requirements for other free trade partners.
In addition, the British government announced the Internal Market Act in September, in which provisions involving Northern Ireland are deemed to nullify the controversial “Brexit” deal. The European Union questioned that the bill violated the “Brexit” agreement and international law, undermining mutual trust between the two parties, and stated that if the United Kingdom does not modify the relevant provisions, the European Union will not approve any treaty of free trade, but the British side refused to do so.
Still hopeful
Both the United Kingdom and the European Union acknowledged that with the rebound in the new corona epidemic, reaching a trade agreement will help prevent both sides’ economies from worsening. Allie Renison, Senior Policy Adviser at the British Institute of Directors, said: “No one doubts how difficult it is for companies to prepare for a ‘no-deal Brexit’ during the epidemic.”
If the UK and Europe fail to reach a trade deal during the transition period, bilateral trade will return to the WTO framework from 2021 and border inspections and tariffs will have to be re-implemented, resulting in an increase in business costs. Supply chains for UK and EU companies will be affected, trucks will have to queue for customs clearance and some manufacturers will even have to switch suppliers.
Ian Wright, executive director of the British Food and Drink Federation, said: “If no agreement is reached, consumers will pay a high price. Food and drinks imported from the EU will face a high average tariff of 18%. , which brings the prices of animals. ” On the rise. And the epidemic will magnify the impact of ‘no-deal Brexit.’
Well-known investment bank Goldman Sachs previously predicted that if Britain and Europe fail to reach a trade deal, coupled with the overlapping impact of the new corona epidemic, the two parties may have nearly $ 1 trillion worth of trade “in chaos” as of 2021.
However, the British media recently revealed that David Frost, the British side’s chief negotiator, advised Johnson not to withdraw from the negotiations on future relations between Britain and Europe, arguing that there is still a way to go. an agreement in the next two weeks. Reuters also cited Goldman Sachs analysis that it believed the UK-EU trade deal could be reached in early November.
