The UK will have to prepare for a Brexit without a trade deal with Europe.
British Prime Minister Boris Johnson commented on Thursday that he sees a “strong possibility” that negotiations between Britain and Europe for a post-Brexit trade deal will not bear fruit.
“Now there is a strong, strong chance that we will come to an agreement more akin to the relationship the EU has with Australia than the EU has with Canada.. That is not a bad thing. There are different ways, as I said, for this to be beneficial to both parties. There are quite a few opportunities for the UK, ”he said in an interview he posted on his official Twitter account.
Nor does the European Commission see an open path towards a trade pact. Its president, Ursula von der Leyen, declared early Thursday that “there is no guarantee that when and if a commercial pact is reached, it can be activated in time. We must prepare, even for the possibility of not having a deal by January 1”.
Negotiators from the European Union and the United Kingdom have until December 31 to finalize a post-Brexit trade deal. However, the obstacles persist.
While Europeans point to a relationship similar to the pre-breakup (the so-called “Canadian option”), Johnson is looking for a less compromised deal (the so-called “Australian option”).
The Canadian model would result in an agreement with higher tax benefits (less fees), but with greater commitment. In contrast, the Australian would give both parties greater commercial independence, albeit without the benefits.
Negotiations continue, but both sides of the conversation asked to be ready for a scenario without a trade agreement.
“Now is the time for the public and businesses to prepare for January 1. Because believe me, there is going to be change […] Now we have to start preparing for that Australian-type deal, ”Johnson said.
To reduce the levels of uncertainty, on January 1, the European Commission announced that basic measures will be implemented to maintain air and land connectivity between the two territories, in addition to fishing access and mutual waters, regardless of the outcome of the negotiations.
Now is the time for the public and businesses to get ready for the Australian option on January 1st. pic.twitter.com/lLJfmIy9XI
— Boris Johnson (@BorisJohnson) December 10, 2020
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