Daily Management Review

No Brexit Trade Deal Yet As Issues Remain Between EU And Britain


No Brexit Trade Deal Yet As Issues Remain Between EU And Britain
The negotiations on a Brexit trade deal between the United Kingdom and the European Union hangs by a threat just 24 days prior to the end of the transition period even as the EU tried to secure a deal at the last minute by bridging significant differences between the two parties so that a disorderly exit does not happen.
The current state of negotiations is slated to be reviewed by British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen on Monday even as there are growing fears of a possible no-deal Brexit that will disrupt trade between the tow two trading partners after the UK officially leaves the common market of the EU on December 31.
The chances of a deal were 50-50m said Irish Prime Minister Micheal Martin on Sunday. The odds of a no–deal Brexit has increased from 20p per cent to two third, said Investment bank JPMorgan.
While speaking to national envoys in Brussels on Monday morning, the EU chief negotiator Michel Barnier was “rather downbeat as to the prospects of agreement”, one diplomat was quoted in some reports as saying. The ultimate call on a deal will have to be taken by Johnson, the diplomat reportedly said.
“The ball is in BoJo’s (Johnson’s) court,” the diplomat, who was taking part in the briefing, reportedly said, the reports claimed. “Differences persist on all three issues.”
Since Britain officially left the EU on January 31 this year, it has been on a transition period with the rules on trade, travel and business with the EU have not changed.
There are three major sticking points that is preventing a trade deal between the two parties - fishing rights in British waters, the issue of fair competition for firms on both sides and ways mechanisms to address future disputes.
Britain had failed to make the “necessary choices” on fishing and fair competition for making a deal possible on trade, an EU diplomat reportedly told the news agency Reuters in Brussels. The total value of the trade between the two parties is about $1 trillion annually.
France will need to make some concessions on the issue of fishing and the demand for a level playing field has to be given up by the EU, a British lawmaker in Johnson’s ruling Conservative Party said in London.
International borders would get clogged in addition to causing turmoil in financial markets and significantly disturb the delicate supply chains of companies spread across Europe and beyond if there is a no-deal Brexit. It will also be a hit to the global economy even as it tries to get out of the economic hit of the novel coronavirus pandemic. 
“Decisive hours for the future of EU-UK relations,” said Sebastian Fischer, an EU spokesman for Germany, the current holder of the EU presidency.
“I still think it is more likely than not that we will find a way of getting a deal done but I won’t be shocked if it falls apart,” Irish Foreign Minister Simon Coveney was quoted as saying by the Irish Times. “If we don’t get a deal in the next few days, then obviously there are serious problems around ratification and timelines.”