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No deal on Brexit trade 'very very likely', Johnson says

Published 11/12/2020, 07:35
Updated 12/12/2020, 11:05
© Reuters. Puzzle with printed EU and UK flags

© Reuters. Puzzle with printed EU and UK flags

By Guy Faulconbridge and Gabriela Baczynska

LONDON/BRUSSELS (Reuters) - Britain is likely to complete its journey out of the European Union in three weeks without a trade deal, British Prime Minister Boris Johnson and European Commission chief Ursula von der Leyen said on Friday.

Britain quit the EU in January but remains an informal member until Dec. 31 - the end of a transition period during which it has remained in the EU single market and customs union.

Both sides say they want to agree arrangements to cover nearly $1 trillion in annual trade but negotiations are at an impasse, with Britain standing to lose zero-tariff and zero-quota access to the huge European single market.

"It's looking very, very likely we'll have to go for a solution that I think will be wonderful for the UK. We'll be able to do exactly what we want from Jan. 1. It will obviously be different from what we set out to achieve," Johnson told reporters.

"If there's a big offer, a big change in what they're saying then I must say that I'm yet to see it," said Johnson, the face of the "leave" campaign in Britain's 2016 Brexit referendum.

He later held a meeting with senior minister Michael Gove and officials to assess the country's preparedness for a no-deal departure, a government official said.

Von Der Leyen was quoted by an EU official as telling leaders of the bloc's 27 member states attending a summit in Brussels on Friday that prospects for a deal had worsened.

"The probability of a no deal is higher than of a deal," the official said on condition of anonymity.

Johnson and von der Leyen have given negotiators until Sunday evening to break the deadlock over fishing rights and EU demands for Britain to face consequences if in the future it diverges from the bloc's rules.

Johnson must decide whether the deal on offer is worth taking or the future freedom and domestic political benefits afforded by leaving without one outweigh the economic costs.

A Brexit without a trade deal would damage the economies of Europe, send shockwaves through financial markets, snarl borders and sow chaos through the delicate supply chains which stretch across Europe and beyond.

NO DEAL?

As EU leaders lined up to warn of the failure of talks, investors started to price in the risk of a chaotic finale to the five-year Brexit crisis.

British stocks fell, euro zone government bond yields fell and sterling fell about 1% against the dollar and euro.

Italian Prime Minister Giuseppe Conte said there were still fundamental issues unresolved in the trade talks.

"Time is running out and we need to prepare for a hard Brexit," he said, referring to an abrupt rupture in trade arrangements.

EU leaders rejected a proposal from Johnson for a Brexit call with German Chancellor Angela Merkel and French President Emmanuel Macron on Monday, EU officials said.

Johnson is under pressure from Brexit supporters in Britain not to cave to any EU demands that they say could undermine his promises to regain Britain's sovereignty.

Macron also faces domestic pressure, with French fishermen urging him to ensure the EU defends their fishing rights.

Asked by a reporter about an EU proposal for a one-year contingency plan, under which EU fishermen would keep access to Britain's fishing waters, he said: "I'm not asking to have my cake and eat it, no. All I want is a cake that's worth its weight. Because I won't give up my share of it either."

© Reuters. British government Brexit information campaign advertisement is seen along the M25 near Westerham

The Bank of England said it had taken steps to keep banks lending through 2021 as Britain prepares for any market disruption from a big change in the trading relationship with the EU, while also dealing with the COVID-19 pandemic.

Latest comments

Wish we had someone like Borris from the start, we would have had our no deal years ago and had our trade deals with US and the rest of the world by now. Anyway, better late than never.
Europe, Wales, Scotland and Ireland do not want England. Pity they can’t stand on their own two feet.
don't be so sure. thanks to people like u and the EU tactics you have created more brexiters than remainers. keep up ur good work.
what the EU are fully demanding is not altogether normal in a trade deal. ie if you were asking for a simliar trade deal with the US they would and have told you where to go. There is always give and take with any trade deal, thats life in trade, but the EU are all take especially in the main areas. The EU know that, but they need to be seen as being strong to prevent other EU stats from following UK's requirements to be a sovereign country again. that is plainly seen by educated indivduals in the know.
ger ber, there are many forms of trade deals through out but there's not one where they demand control of a countrys or stat law makers and demand acces rights to their commodities (fishing in Uk in this circumstances). fair trade deals can be done without free access to all commodities. but thats for next year. trade negotiations just stop on Dec. the EU have already said their going play the waiting game if a deal can't be done. Now that's a risky game to play nut thats politics for u. but like i say that's for next year after.
You can take our fish but you will never take our freedom!!
Britain f-off! Good riddance. Bojo doesn't even deserve any respect - he's a typical daily telegraph columnist, suitability to be a PM : 0%.
the eu is like an overbearing step mother. good riddance!
Thanks for all the fish. This is mid to long term good news for the uk. WTO rules for the eu and free trade agreements with the rest of the world. Let's rebuild our relationship with the commonwealth nations and forgot about protectionist eu policies.
Look at the comments, European like to bully British.
🤡
not all europeans, just the pro EU ones. the rest are sound
I'm wondering what precedence this sets for those still in the EU, pretty sure they will lose confidence in their collaboration and9 may well be UK first in the queue, which means the grasp by EU will be much tighter going forward thus resulting in unrest throughout the nations included
My body is ready o/
The EU acting as their normal Bully self.They are attempting to bully and belittle Britain into un scrupulous terms which only benefit them.Lets face it. EU are trying to use Britain to create an example to stem the collapse of their dictatorship which is quickly being found out around Europe to be nothing more than a farce which only benefits 2 countries. Britain will flourish and the EU hates to see it.
I'm wondering what precedence this sets for those still in the EU, pretty sure they will lose confidence in their collaboration and9 may well be UK first in the queue, which means the grasp by EU will be much tighter going forward thus resulting in unrest throughout the nations included
Brexit is brexit, England wanted ti, just let them go, they need more the EU than us from them, soooo tyring this endless talks, just stop and let them go with no deal !!
off course, and in a foreseeable time the UK will flourish away from the protectionist superstate cult EU
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