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One of the main obstacles to negotiations is disagreement over fair competition provisions. London does not agree to a mechanism that would allow the Community to react quickly if UK and EU trade rules become different in the long run and European companies find themselves at a disadvantage.
During Wednesday’s dinner, UK Prime Minister Boris Johnson and European Commission (EC) President Ursula von der Leyen agreed that a decision would be made on Sunday on whether to continue negotiations on trade relations after of Brexit.
“Scanpix” / “SIPA” nuotr./Borisas Johnsonas ir Ursula von der Leyen
“Now there is a good chance … that we have a solution that is more like Australia’s relations with the EU than Canada’s,” Johnson said Thursday.
Der der Leyen told the bloc’s leaders on Friday that expectations for a trade deal with the UK were “low”, according to Reuters sources.
VIDEO: Final decision on Brexit: UK withdraws from EU
What problems can arise?
The BBC notes that without a deal, the prices of goods bought and sold by the UK in the EU could rise. This is because the UK and the EU will trade under the auspices of the World Trade Organization (WTO), the essential rules that apply to non-trading countries.
The EU would introduce tariffs on goodsfrom the UK. On average, that would be around 2.8 percent. for non-agricultural products, 10 percent. automobiles and more than 35 percent. dairy products. Tariffs will put pressure on some industries.
The UK would also introduce tariffs for some EU products, they could become more expensive. However, products imported into the UK from other parts of the world could become cheaper if London decides to abolish the tariffs.
UK Exporters there could be problems with food standards. Without an agreement that UK rules are acceptable to the EU, UK sales could be suspended at the border, leading to delays, the BBC writes.
Long lines of trucks are expected, as more controls will be carried out at the border. The UK postponed full control of goods arriving from the EU until July 1. However, there are fears that EU truck drivers will try to avoid the UK altogether if the delays begin.
AFP / Scanpix Photo / Fishermen in Bridlington Harbor
Some UK supermarket chains warn of a smaller range of foodsthat fresh produce may be particularly affected. It is possible to find a replacement elsewhere, but that would drive up prices.
According to the BBC, negotiations are crucial the theme of fishing. Without an agreement, EU vessels will lose access to UK waters and vice versa. It is feared how clashes could arise if the boats continue to fish where they always have. There are also concerns that the tariffs will have a strong impact on UK fish exports to the EU.
Security cooperation and data exchange it will become more complex, there will be problems with international investigations. The UK will immediately lose access to fingerprints, criminal records and wanted databases.
There are questions about services.. The UK is still awaiting a decision on whether the EU will recognize the UK’s financial services rules. Without such recognition, it would be difficult for UK companies to operate in the Community. Some banks have already moved offices and staff to EU countries.
Medication supply may be affected through the ports of the English Channel. Particularly concerned about drugs with a short shelf life, writes the BBC.
What if there is no agreement?
If an agreement is not reached before December 31, it does not mean that it will never be achieved.
As this will cause problems for both parties, they can try to reach an agreement as soon as possible. It is true that both sides claim that negotiations could only be resumed in a few months, writes the BBC.
VIDEO: Brexit Day: what should emigrants and travelers know?
For those who want to travel and work in the UK.
Some of the changes expected from January 1 are already clear.
Citizens of the EU, the European Economic Area (EEA) and Switzerland will no longer need a visa if they come to the UK on holiday or for a short period of time. They will need a valid passport or identification card.
Duty-free shops will be open, but there will be a limit to the amount of alcohol and tobacco that can be brought into the UK from the EU without additional tariffs.
A new immigration system will come into effect in the UK: those who want to work in the country will be valued. 70 points will be needed to obtain a visa.
A qualified job offer from an approved employer will award 40 points, the ability to speak English another 10 points. Those who are promised at least 25.6 thousand. British pounds (€ 27,954) per year can earn another 20 points.
Additional points may be awarded for higher qualifications or for work in an area where there is a labor shortage in the UK.
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