Brussels, Belgium – February 3: EU Chief Brexit negotiator Michel Bernier will address a press conference in Brussels, Belgium on February 3, 2020.
Anadolu Agency
LONDON – The UK and the EU have their poker faces as post-Brexit trade talks hit a new stalemate, with both sides arguing that their opponents needed new concessions.
The allegation game is not new to those following the Brexit process, but it has resurfaced at a crucial time for the future relations between the European Union and the UK, which voted to leave the bloc in 2016.
A trade agreement is required before the end of the year – without a deal by January, the UK and EU businesses will default on WTO rules, and face costs and barriers to trade.
Government Minister Michael Gove told Sky News on Sunday that the probability of a deal was less than -0%. Earlier this month, he handed it a 66% probability.
To ratify the deal before the end of the year, a political settlement will probably be reached in the next three weeks.
“Let’s see if the European Union appreciates the importance of reaching a deal and the importance of moving forward,” Gove said. The ball was in the court of Europe, Gove said.
His comments came after the EU statement on Thursday called on the UK to “take the necessary steps to make the agreement possible.”
EU and EU chief negotiators David Frost and Michelle Barnier will discuss on Monday what kind of “constitution” their talks will take, an EU spokesman said.
“With only 11 weeks left until the end of the transition period, time is running out. To ratify a deal before the end of the year, a political settlement may be reached in the next three weeks,” Bernberg said in a note on Monday morning Assign the probability.
Prepare a deal
The blame game lies with new remarks by UK Prime Minister Boris Johnson, who advised British businesses to prepare for a deal.
“I conclude that we should be ready for January 1 with more arrangements like Australia based on the simple principles of global free trade.” Johns said Friday.
His comments suggest that businesses need to be prepared for a trade agreement with the EU, as trade between the bloc and Australia is conducted under WTO rules.
A group of more than 70 British businessmen called on politicians to “find a way in both directions.”
“The clarity that comes with the ambitious deal will have an immediate impact on companies’ preparation efforts. It will help invest by eliminating the risk of tariffs and quotas. The service is important to the industry, they said in a statement on Sunday.
Trade talks on three key issues of the month have stalled for months: fisheries, competition rules and the rule of their futures contracts.
In addition, negotiations were hit last month when the UK decided to override previously agreed legislation with the EU. Europe has said on several occasions that it will not sign any trade deals if the status quo continues.
“Despite the noise, and it’s loud, the fundamentals have not changed for both parties: a second coronavirus wave makes trade deals more necessary for the UK and the EU to avoid a double economic blow to business,” said research firm Eurasia Group. In a note on Friday.
“Johnson also needs a contract for political reasons, as he has growing difficulties with the coronavirus.”
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