British Prime Minister Boris Johnson is preparing new legislation that will undo previous agreements with the EU regarding a trade treaty. This suggests that current negotiations on a British-European trade deal have failed.
The Johnson government is reversing agreements on the 'level playing field' for companies (no unfair competition through government support) and customs provisions for (the British province) Northern Ireland. According to the usually well-informed Financial Times, Prime Minister Johnson will make a statement on Wednesday.
Last October, Johnson and the EU reached an agreement on the terms of the UK's departure from the EU. London and Brussels are now trying to reach an agreement on a 'post-Brexit' trade deal, but there appears to be little progress. "If we cannot agree by [October 15], then I do not see a free trade agreement between us coming, and we must both accept that and move on," Prime Minister Boris Johnson said on Monday.
He compared the future British trade situation without an EU trade deal to that with Australia, where both countries are bound by global WTO trade tariffs. The British industry and agricultural sector call this a nightmare scenario because they risk losing a large part of their exports to EU countries and will have to pay high import tariffs on EU products.
Yesterday, Brexit hardliners within the Conservative Party hinted at a break because the previous British government under Theresa May supposedly made the âwrong agreementsâ with the EU right from the start, causing the British to remain tied to EU agreements after Brexit. They want to let Johnson now push for a hard no-deal Brexit, although the House of Commons rejected this three times last year.
If no agreement is reached, the UK would have a trade relationship with the EU like that with Australia, which would be "a good result," Johnson will say on Wednesday. "As a government, we are preparing at our borders and in our ports to be ready. We will have full control over our laws, our regulations, and our fishing waters."
EU diplomats were appalled and warned that such a step would damage the global prestige of the United Kingdom and increase the chance of a tumultuous Brexit on December 31. It also effectively means that the trade negotiations, which continue this week in London, are doomed to fail.
One insider told the Financial Times that the move will âclearly and deliberatelyâ undermine last Octoberâs agreements on preventing a hard border in Northern Ireland. Politicians in Northern Ireland have already expressed shock at Johnsonâs âbacktracking.â
A deal must be reached before the end of the year, as that is when the transition period that began after Brexit earlier this year expires. During this transition, the UK still adheres to EU rules.
In a statement released by the Prime Ministerâs office on Sunday, it was stated that Johnson will inform the EU on Monday that October 15 is his deadline for reaching a deal. In doing so, he reiterates once again that London does not want to extend the current transition phase.