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The UK formally left the EU in January this year, but until the end of December it belongs to the EU internal market. The future of trade will depend on whether the EU and the British agree to a new trade deal.
But negotiations between the EU and the UK have stalled and neither EU Commission President Ursula von der Leyen nor British Prime Minister Boris Johnson seem to believe they will reach an agreement before the deadline. . Without a deal, the EU and UK will act on the basis of the World Trade Organization rules, with increased tariffs and tighter controls as a result.
“Get ready for an Australian model”
Boris Johnson has previously said that the British and businesses must prepare for a difficult Brexit and similar trade conditions as Australia’s with the EU.
– We do not interrupt the talks, the negotiations continue. But given our position, it is important for everyone to prepare now for the Australian model, the Prime Minister said yesterday.
Johnson is warned
Johnson is now being warned by Malcolm Turnbull, the former prime minister of Australia. In an interview with BBC Turnbull says:
– Be careful what you want. From a trade perspective, Australia’s relationship with the EU is not a relationship that Britain wants.
The EU is Australia’s third most important trading partner, around eleven per cent of the country’s goods are sold to the EU and the country’s government wants to negotiate a new trade deal.
The British are even more dependent on the Union, where about half of the country’s exports go, he writes The Guardian. This means that the UK without a trade deal would be affected significantly more than Australia today.
“No deal is better than a bad one”
Boris Johnson has said that he believes that no deal is better than a bad deal. But Carl Bildt also thinks Johnson should rethink and writes on Twitter:
“Someone should tell him that Australia is really interested in negotiating a trade deal with the EU.”
