No new deadline was announced on Sunday, but von der Leyen said it was “responsible” to go “further,” adding that she made a “constructive and helpful” phone call to Johnson.
Speaking in London, Johnson said the two sides were still “diverging from the key issues” and warned that “the most likely thing now is that we have to prepare for the WTO terms, Australia’s terms.”
Australia does not have a free trade agreement with the European Union, although talks continue to secure it. Johnson and his government have used the term “Australia terminology” extensively as a mod to a no-deal Brexit.
But the term is misleading, because Australia and the European Union already have a mutual recognition agreement, making it easier for manufacturers to obtain the necessary regulatory approvals to sell their goods. However, the UK has no such agreement with the European Union.
If no agreement is reached, he will be forced to trade with the bloc according to rules set by the World Trade Organization. This could mean new definitions and other barriers, such as regulatory checks and paperwork.
The British prime minister said his government would continue to try to hammer out a trade deal, but warned that there might not be a solution by the January 1 deadline. “I think there is a deal to be made but we are still far from some key issues:
“And we have to take back control of our fisheries,” Johnson said.
The European Union and the United Kingdom have been trying for months to agree on a trade deal before the end of the “transition period” for Britain’s exit from the European Union at midnight on December 31st. Earlier this week, a joint statement by Johnson and von der Leyen indicated three thorny “critical” points: fishing rights, the UK’s ability to disagree over EU standards, and legal oversight of any deal.
Failure to reach a trade agreement would be economically painful for both the EU and the UK, although the impact on the UK would be disproportionately greater, given that the EU is by far its largest trading partner. Losing access to its single market will cut off the UK’s business from 450 million consumers in Europe, burdening them with additional customs duties and protein.
The United Kingdom’s Office of Budget Responsibility (OBR) estimates that a no-deal Brexit will wipe out 40 billion pounds ($ 53 billion), or 2%, of the UK’s economic output in 2021, leaving more than 300,000 people unemployed. Work by the second half. Next year.
However, OBR said in November that even if London and Brussels could reach an agreement, their new trade relationship was expected to result in a long-term production loss of around 4% compared to Britain’s remaining in the European Union.
Ireland, which has lost the most on the EU side, said it was “absolutely essential” for the UK and the European Union to reach a post-Brexit deal. Irish Prime Minister Michel Martin told the BBC on Sunday that the scenario of failure to reach an agreement would be “very harmful to workers” in the UK, Ireland and across Europe, and represented “a horrific failure of governance”.
Johnson said on Thursday that he had instructed his cabinet to prepare for the failure of talks, and the European Union had issued plans aimed at keeping its borders open to commercial planes, trains and trucks.
The British Ministry of Defense said on Saturday that the UK will have a “string of enforcement measures” available at the end of the Brexit transition period, including “many” maritime patrol vessels available in its territorial waters.