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There is a “great chance” that a trade deal with the EU will not be reached after Brexit, Boris Johnson warned.
The prime minister told British citizens and businesses to “make the necessary preparations” for the scenario, which would take effect on January 1, 2021.
He added that the current offer from Brussels “is not suitable for the UK” and that a no-deal divorce, which he described as a business relationship like Australia’s with him I – would still be “very good”.
The stakes were raised as the negotiations approach the brink of the transition period, which will end in a few weeks.
A showdown between Mr johnson and President of the European Commission Ursula von der Leyen Last night he failed to break the dead end. Both leaders have set Sunday as the deadline to decide whether the talks should be withdrawn or continued.
In a brief interview from Downing Street on Thursday, the prime minister promised to “go ahead” and “go the extra mile” towards a deal.
“The UK has been incredibly flexible,” he said. “We are trying very hard to advance in all sorts of things.”
But he continued: “I think we need to be very clear.
“Now there is a great possibility, a great possibility that we will have a solution that is more like an Australian relationship with the EU than a Canadian relationship. [trade deal] with the EU.
“That doesn’t mean it’s a bad thing, there are many ways we can turn that to both our advantage.”
He added: “Now is the time for the public and businesses to prepare for January 1, because believe me there will be changes either way.”
Johnson identified the two main remaining issues as fishing and the EU’s bid for the UK to adhere to its demands for business competition known as “level playing field”.
Earlier, Ms Von der Leyen said: “We are ready to grant access to the single market to our British friends – it is the largest single market in the world – but the conditions have to be fair.”
“They have to be fair to our workers and our companies, and so far this delicate balance of fairness has not been achieved.”
The UK left the EU on January 31, but has continued to abide by most of the bloc’s rules to give negotiators time to try to reach a trade deal and limit disruptions for businesses and travelers.