UK Prime Minister Boris Johnson on Friday said British firms must be prepared for a potential no-deal Brexit. A UK exit from the EU with no deal will bring consequences to British companies doing business with EU countries, including tariff-based trade under the World Trade Organization (WTO) terms. UK voters decided to exit the bloc in June 2016. However, the process was delayed repeatedly until the country finally left the union on January 31. It remains under a transition period which is due to expire on December 31.
With only 11 weeks left, the trade negotiations appear to have stalled on key issues, including fair competition rules, dispute resolution, and fishing rights. Both the UK and the EU are aiming to sign a free trade agreement (FTA). However, they seem unwilling to make any compromises. French President Emmanuel Macron said that the EU is ready for an agreement, but not at any price. Macron’s statement was echoed by Ursula Gertrud von der Leyen, the President of the European Commission.
Ursula also added that the negotiations would be intensified this week. UK and EU chief negotiators David Frost and Michel Barnier will speak on the phone to discuss the structure of future negotiations. A no-deal Brexit will disrupt operations of British manufacturers, retailers, farmers, and nearly other economic sectors, adding blow to the UK’s virus-hit company. More than 70 UK industry groups last week urged politicians to continue the talks and strike a deal.
