Calm the EU and make a love call to the US … UK gears up for ‘Post Brexit’

Concession to controversial internal market law … Possibility of ending even with positive momentum

[아시아경제 정현진 기자, 권재희 기자] After Brexit (the withdrawal of the United Kingdom from the European Union), the internal market legislation that had come under heavy pressure during the negotiation process was practically neutralized and the punitive tariffs imposed on the United States had to be abolished. With the end of the transition period at the end of this month, it seems that the ‘Post Brexit’ contains the intention to open all possibilities, including the No Deal, as the situation rarely predicts the outcome.

According to the BBC broadcasts on the 8th (local time), Michael Gove, Head of the UK State Coordination Office and Maros Sefković, Vice President of the EU Commission, announced that they had reached an agreement on the procedures customs clearance and quarantine at the border between Ireland and Northern Ireland. The content focuses on the details of trade between the borders of Ireland and Northern Ireland, the most controversial of the current EU withdrawal agreement. The UK proposed an internal market law last September to neutralize the EU withdrawal agreement, which Northern Ireland agreed to comply with EU regulations, but this time removed the basic provisions of the legislation to determine which declarations of export are necessary and medicines and food products. They agreed on how to proceed with the rules related to the supply and the procedures of animal and plant quarantine.

This agreement is independent of the negotiations on future relations between the two parties, which are currently being discussed. However, this decision is attracting attention because it appears that future relations negotiations may act as “a boost” in the face of a no-deal crisis. In particular, given that the British government has strongly insisted on the bill, there is hope that changes in the EU’s negotiating attitude can be expected.

Interest in the negotiations during the transition period is the face-to-face meeting between British Prime Minister Boris Johnson and EU Commissioner Urzula Ponderaien, scheduled for the 9th. Both sides made a phone call on the 7th. But since negotiations were still slow, Prime Minister Johnson heads to Brussels, Belgium. With the EU summit scheduled for 10-11, the UK government believes that if the dialogue is positive, negotiations between the two sides can resume on the 11th.

However, it is difficult to reach a dramatic consensus on the main issues that have created a deadlock, so a full agreement seems difficult in reality and there is the possibility that there will be no agreement. EU negotiator Michel Barnier predicted that the chance of an agreement between the two parties that day is extremely low. Bloomberg, citing several EU officials, said: “The final deal will depend on whether Prime Minister Johnson makes a political decision.”

The British government is also accelerating work to prepare for the post-Brexit transition period. British Minister for International Trade Leeds Truss said in a statement today that “we want to enter into a deep business relationship with the United States” and that the EU will abolish punitive tariffs on aircraft subsidies imposed on US-made products. Previously, the EU imposed tariffs of up to 25% on US-made products worth $ 4 billion in retaliation for the US government’s illegal subsidies to Boeing.

The UK move is interpreted as a cornerstone for bilateral trade negotiations with the US after the transition period. However, it is unclear whether a trade deal between the UK and the US will be concluded in the short term, even on the UK love call. US President-elect Joe Biden said in a recent interview with the New York Times (NYT): “We will be in no rush to close a new trade deal.” I will not do it “.

As the chaos continues, the exchange rate of the British pound has fluctuated. The main foreign media reported that the expected volatility of the pound for the next four weeks is the highest since last March, when the new coronavirus infection (Corona 19) hit.

Reporter Jeong Hyun-jin [email protected] Reporter Kwon Jae-hee [email protected]