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BRUSSELS, Dec. 23 (Reuters) – The United Kingdom and the European Union appear to be on the verge of finalizing a trade deal that has not been reached for a long time on Wednesday, raising hopes that divided allies will avoid unrest on the first day. of the new year. Economic decoupling.
A reporter for the British “Daily Mail” said the deal has been reached and there are rumors that British Prime Minister Johnson will announce the news on Wednesday night.
However, the two sides of Great Britain and Europe have not officially confirmed that the tortuous consultations that have lasted several months have taken place.
A source at the European Commission said that although it has entered the “final stage”, consultations are still ongoing. An EU official cautioned that the risk of a “no-deal” Brexit on January 1 cannot be ruled out, saying: “Both outcomes are possible.”
A British government source is also cautious, saying: “Consultations are ongoing.”
Despite this, three EU diplomatic sources told Reuters that EU member states have already started the process of preparing for a new trade agreement with the UK from January 1 next year if it is reached. an agreement.
An anonymous diplomat said that EU member states must approve a provisional application for the agreement to enter into force on January 1, because there is not enough time for the agreement to be approved in the European Parliament.
Housing, Community Affairs and Local Government Minister Robert Jenrick said that two important issues, fisheries and fair competition, remain to be resolved and that not enough progress has been made to reach an agreement.
However, a French official told Reuters that the UK had made “huge concessions” in the last 48 hours of negotiations, mainly on the issue of EU fishing in British waters.
The European Commission declined to comment.
The pound rose more than 1.1% against the US dollar in one day as the market believed a deal was possible. Government bond yields in the UK, Europe and the US rose and prices of government bonds went down.
** Is it time to reach an agreement? **
Previously, France closed its border with the UK for 48 hours due to concerns about the mutated strain, prompting thousands of angry European truckers to stay in southern England and disrupt food supplies, exposing chaos. caused by disorderly Brexit. .
Irish Prime Minister Micheál Martin said the two sides are still very divided on the issue of EU vessels fishing in British waters. This is one of the most controversial issues in the negotiations.
However, he told the Irish national TV station RTE: “I think considering the progress that has been made, a deal must be reached … ‘No deal’ will have a terrible impact on the economy that has already been hit by the epidemic. ” (The end)
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