Daily Management Review

Brexit Trade Deal Very Close As EU And UK Hash Out Final Details: Reports


Brexit Trade Deal Very Close As EU And UK Hash Out Final Details: Reports
It reports emerging out of London and Brussels are to be believed, the two parties are close to clinching a Brexit trade deal.  
On Thursday, the final details of a post-Brexit trade deal were chalked out by the European Union and United Kingdom and the negotiators hoped that they would be able to strike a deal very soon. 
Even though a Brexit deal stitched in the last minute would bring an end to the long impasse of a trade agreement between the two parties, the deal would also mean the UK ending up in a more distant relationship with its biggest trade partner than what most had expected when the country chose to get out of the bloc after the 2016 Brexit vote.
While negotiators in Brussels brushed through the final details of a post-Brexit trade deal, British Prime Minister Boris Johnson held a late-night conference call with his Cabinet of senior ministers, said reports quoting sources in London and Brussels.
However it is likely that a deal would not be announced prior to Christmas as the l;eaders had hoped.
"Brexit work will continue throughout the night," European Commission spokesman Eric Mamer tweeted. "Grabbing some sleep is recommended to all Brexit-watchers at this point. It will hopefully be an early start tomorrow morning."
"We are in the final phase", European officials had confidently told journalists just a few hours earlier.
However no official confirmation of a trade deal was available but it is expected that the UK government will address the issue before the press on Thursday – days beforethe UK is set to completely formally exit the EU on December 31.
UK negotiators had made "huge concessions" on fisheries which has been the biggest sticking point in the two parties securing a deal on trade, said a report quoting a French government source.
If a deal on trade is indeed achieved between the two parties it would save imposition of tariffs and other trade barriers for mutual trade3 which is worth about $1 trillion annually.
A transition period for UK’s exit from the EI, which has been in force since January 31 this year when the United Kingdom formally left the EU, us set to come to an end on December 31. Starting January 1, the UK will be treated as a third country by the EU.
Apart from securing nearly $1 trillion in annual trade, a zero-tariff and zero-quota trade deal would also support the peace in Northern Ireland.
Following the trade negotiators from both sides unable to close the gap on how to share access to UK fishing waters, the negotiations had shifted to cross-Channel calls between Johnson and von der Leyen.
If a trade deal is not achieved, it would mean imposition of tariffs on cross-Channel trade in food and goods which would exacerbate the economic shock of a return to a customs border after 47 years of integration.