Brussels, Belgium – February 3: EU Chief Brexit negotiator Michel Bernier will address a press conference in Brussels, Belgium on February 3, 2020.
Anadolu Agency
Sterling surged more than 0.8% against the US dollar on Wednesday after the European Union indicated that a trade deal with the UK was still possible.
“Despite the difficulties we have faced, if both sides are willing to work constructively, if there is a compromise between the two and if we can make progress in the next few days on the basis of legal texts, an understanding can be reached.” “If we are ready to resolve some difficult issues, difficult issues in the next few days,” Michelle Barnier told the European Parliament.
His remarks gave traders some optimism that a trade deal would be struck between the UK and the EU, although their negotiations have been stalled for months on three similar issues.
On Friday, UK Prime Minister Boris Jones struck a gloomy tone when he warned exporters not to make any deals with the EU. A government spokesman said earlier in the day that European negotiators would not have to travel to London this week if the EU did not change its approach to negotiations.
British officials were disappointed last weekend when European leaders called on the UK to “take the necessary steps to make the deal possible.”
Negotiations have stalled since the tensions, but the European Union has now said it is ready to return to the table as soon as the UK government chooses to do so.
‘Find the Necessary Solution’
“We will do our best to reach an agreement and find the necessary compromise with both parties, and we will do so until the last day,” Bernier told reporters on Wednesday.
“Our doors will always be open until the end but … we will remain firm.”
The UK withdrew from EU membership in January but will abide by EU rules by the end of the year so that both sides can work on a new trade arrangement. This will be different from the zero-tariff regime in place at the moment. Failure to develop new trade rules would mean that exporters face higher costs and barriers when selling goods between the two groups.
UK Government Minister Michael Gove told Sky News on Sunday that the chances of a deal being struck were less than 50%. Earlier this month, he handed it over with 66% probability. Negotiators have not found a compromise on the future of fishing, competition rules and their potential deals.
In addition, the EU has said it will not sign any new trade agreements while the UK government will not fully comply with the withdrawal agreement signed earlier this year, which paved the way for secession from the UK group. In London the government has introduced a bill that overrides parts of the previous agreement and the EU has demanded that the next law be amended to honor their previous deal.
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