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Original title: Negotiations or postponement of Brexit,GBPWith the rebound, the fishing problem is still the key!
The UK and the EU have been working hard for months to come up with a new deal. With only eight days left until the UK leaves the single market and the EU customs union, progress in negotiations remains slow and the issue of fisheries remains an obstacle in negotiating a trade deal. Although the economic impact of the fisheries issue is negligible, on their own account, both parties attach great importance to this issue and are not willing to give in easily.
Negotiations between the UK and the EU are at a critical juncture and a deal is possible on Wednesday.
Barnier, the EU Brexit negotiator, was originally scheduled to brief the 27 EU envoys on Brexit on Tuesday (December 22) at 1500 GMT, and then address the European Parliament. Before reporting to the EU ambassador in Brussels, he told reporters: “We are really at a critical moment. We are making the last effort.” Officials from both sides said a deal could be reached on Wednesday (December 23).
According to diplomats with knowledge of the situation, Barnier told the ambassadors meeting in Brussels that the negotiations were progressing.
If the UK agrees to commit to fishing rights, the two parties can reach an agreement before Christmas.
Barnier told the ambassadors,
If necessary, his team is willing to continue negotiations with the country after the Brexit transition period ends on December 31.
The two parties have been working hard for months to reach a new agreement that will cover everything from trade and transportation to energy. Negotiations are now in the final stage, but to control the spread of new strains of the new coronavirus, the European Union and other countries have suspended most travel to and from the UK.
The UK will complete its Brexit on December 31, when it will leave the European Union’s single market and customs union, which means the country’s current free trade agreements with the European Union will expire.
The fisheries issue is the key, the EU rejects the latest British concessions
A diplomat, who asked not to be named, said after a closed-door meeting to update consultations that the fisheries issue remains a roadblock in negotiations with the UK on a post-Brexit trade deal. The latest proposal to reduce EU fishing in British waters after 2021 is “completely unacceptable”. The European Union rejected the latest British fishing concessions; Efforts by the two parties to reach a Brexit trade deal were thwarted.
British Prime Minister Boris. Johnson had two phone calls with the president of the European Commission, von der Lein, on Monday to try to break out of the deadlock in the negotiations. Fishing rights are the main obstacle the two parties have encountered in reaching a broader trade agreement. The UK on Monday expressed hope that the European Union would reduce the value of fishing in British waters by 30%, a significant concession from the 60% proposed last week. However, officials familiar with the discussion noted that the EU is only willing to accept 25% at most, and said that even this range is difficult for countries like France and Denmark to accept.
In addition to the question of the value of fishing, the two sides continue to fight to give fishermen time to adapt to the new regulations. The UK previously proposed three years and now requires the EU to agree to a five-year transition period. While the EU originally proposed ten years, it has now been changed to seven years.
The two parties also discussed what sanctions should be accepted if one of the parties breaches the contract. The EU hopes that if the British government restricts its entry to British waters in the future, it will be able to impose tariffs on the UK. In the latest pledge, the UK stated that it can accept fishing tariffs but cannot accept tariffs imposed in other areas such as energy. Officials said the European Commission is currently discussing the British proposal with member states and a compromise is still possible.
With just eight days left for the UK to leave the single market and the EU customs union, there is little sign that a deal is close.
If there is no agreement on the amount of fish that EU vessels can only catch in British waters, the entire trade agreement can also be broken entirely.
The economic impact of the fishing problem is negligible. Are the two parties “losing a lot due to small losses”?
Although the fishing problem is economically insignificant compared to the general trade agreement, the annual fishing value is approximately 33 millionEUR40 million US dollars. But the UK sees the issue of water control as a key issue related to sovereignty and the recovery of control after Brexit. The EU must preserve the right to fish; otherwise it is unwilling to grant access to the UK single market.
Johnson said: “The key is for everyone to understand that Britain must be able to fully control its own laws and we must also be able to control our fisheries.” He reiterated:
Even if an agreement cannot be reached, trading with the EU under the terms of the World Trade Organization (WTO) is “satisfactory enough”.
According to media reports, EU governments are preparing to continue Brexit negotiations after January 1, 2021. The British pound, which has fallen sharply due to concerns about the lockdown and trade restrictions trip caused by the new corona virus mutation in the UK, has recovered and the market still believes that the gradual promotion of the vaccine will drive a full rebound in the global economy next year, pushing the pound higher. Wednesday, once it bounced to near the 1.34 mark. But even if negotiations between the UK and the EU reach a final agreement, due to the worsening of the epidemic, there is still limited room for the pound to recover.
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