This week we saw the EUs position start to crumble quite dramatically. The EU finally had to admit that No Deal is the only option left, unless the EU drop it’s redlines on the “Level Playing Field” finally offering a real trade deal. Michel Barnier also said this about fisheries which didn’t go down very well.
With the EU conceding that No Deal is a real potential outcome for these negotiations, many in the EU business sector have started to speak out about what could be an economic disaster looming on the horizon.
Joachim Long, who is the Director of Germany’s BDI industry lobby, stated that major economic problems could occur if the EU and UK don’t resolve their differences on a future free trade deal. It’s well known that if no deal is agreed, the only other possible option to trade would be through World Trade Organisation rules.
Mr Long stated that the two sides need to start to “prepare for bilateral trade without an agreement under WTO rules”.
Long added: “German industry does not expect the UK to complete the infrastructure for cross-border trade-in time.”
Mr Lang added: “Companies face the threat of new tariffs, additional bureaucracy, and an economic disaster.”
Mr Barnier on Thursday looked deflated and out of options. In essence, he couldn’t see how the two sides could go forward without putting No Deal exit in the frame as a real potential outcome of these negotiations.
Barnier also took to blaming the UK, claiming the UK has been halfhearted during these talks, and that “big differences” remain meaning that a solution to these talks is now “unlikely”.
Mr Long backed up Barnier sentiment with a statement he made on Bloomberg.
He said: “London has repeatedly deviated from the political declaration on crucial issues, such as future competition regulations.
“It’s imperative for the German government and the EU to join forces and give full focus to the necessary emergency measures.”
With all the doom and gloom predictions from those in the EU, Boris Johnson has always considered No Deal to be a real option from the beginning of this year. In February, he stated that the UK would be taking part in a “multi-dimensional game of chess in which we engage in more than one negotiation at once.”
The UK, right now, is actively arranging trade deals from all over the world to be signed the very day after we leave the transition period. This wouldn’t be possible if the UK were actively seeking a “Level playing field” outcome from the EU. This is why Mr Barnier is so frustrated.
He knows his only option going forward is to accept a No Deal exit unless the EU drop their redlines on the “Level Playing Field” opting for a real free trade deal.
What’re your thoughts?
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