Johnson threatens no deal, the UK businesses beg for one

Big Ben and British Flag

Prime Minister Johnson keeps turning up the pressure in the negotiations for a trade deal between the United Kingdom and the European Union. Around this time the negotiations should be heading into their final stages. Ideally, an agreement should be in place before the end of this month, to give both sides the time to get it ratified. All 27 European Union's member states need to ratify the deal. 

UK Businesses Urge Johnson to Make a Deal

More than 70 British industry groups have urged their government to make a deal with the European Union. The organizations represent more than 7 million workers. The industry groups are fearing the loss of many jobs if there will be a No Deal Brexit.

EU Leaders: UK Needs to Move

After European Union leaders met last week Thursday to discuss the progress in the Brexit negotiations, they concluded that the United Kingdom needed to be more flexible in the negotiations and move towards the end goal.

Boris Johnson: EU Needs to Change Stance

On Friday Prime Minister Johnson responded to this by saying that the European Union needed to change their rigid stance. Johnson stated that the United Kingdom is ready to go for a No Deal Brexit if the EU doesn’t move.

Both parties in the negotiation are digging in.

Like Canada or Australia

Johnson wants a trade agreement similar to the one the European Union has in place with Canada, but the European Union is not prepared to trade with the United Kingdom on those terms. If the European Union refuses the Canada approach, Johnson is suggesting a similar relationship as the one the United Kingdom has with Australia, which is a no deal situation.

Still Room to Manoeuvre

While both parties are using strong language to tell the other to move and change stance, there still seems room to manoeuvre and reach an agreement. European Union negotiator Michel Barnier was scheduled to fly to London today to continue talks, but his British counterpart David Frost told reporters on Friday that talks on Monday would be useless.

At the start of this week, Barnier and Frost will speak again and see if they see enough room to reach an agreement in time to get it ratified before the transition period ends December 31st 2020.

Be Prepared Whatever the Outcome

Companies in both the United Kingdom and the European Union should get themselves ready for a Brexit on December 31 2020. The fact that a trade deal has not yet been agreed upon, doesn’t change the fact that there will be a border between the United Kingdom and the European Union. Companies trading between the UK and the EU will need a lot of additional customs documents and permits.

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If you have any questions about Brexit preparations, pleasecontact one of our specialists. Customs Support is ready for Brexit and our people are happy to help you prepare as well.