Talks to reach a trade agreement between the parties are taking place in March, without agreements between the parties. • If the agreements are not reached, a rise in prices is expected to have serious consequences for the economy • British Prime Minister Johnson: "It seems necessary to prepare for World Trade Organization sanctions"
About a year after the United Kingdom officially left the EU, the chances of reaching a trade agreement between the two sides seem extremely slim.
The agreement that would regulate trade relations between Britain and the EU at the end of the post-Brexit transition period was due to enter into force in early January.
Negotiations on the terms of the agreement began in March, but since then the parties have not been able to formulate agreements, and they have placed the responsibility for this on each other.
Negotiations were due to end today (Sunday), but due to the failure of talks so far, European Commission President Ursula von der Lane and British Prime Minister Boris Johnson decided in a phone call to give the negotiating teams an extension to reach an agreement. The extension.
Archive photo: Reuters
The agreement is due to be approved by the Houses of Parliament in Brussels and London before it enters into force, and due to the end-of-Christian holidays the time limit for completing negotiations and approval procedures is very limited. .
To the extent that this scenario does occur, a significant increase in the prices of products traded between the two parties is expected due to the imposition of new taxes.
This rise in prices will have serious consequences for the British economy, which is already suffering from the effects of the corona plague.
The British National Farmers' Union has warned of "serious disruptions" in agricultural sector activities if no agreement is reached with the EU.
"Negotiation teams worked day and night"
The two main issues that depend on the parties and prevent an agreement from being reached are the issue of the level of taxation on products traded between the two parties and fishing rights.
The EU is demanding that EU fishermen be allowed to fish in the UK's territorial waters, and no - the EU will not allow the UK to sell fish in EU markets.
After the phone call with Johnson, von der Lane said: "We had a helpful conversation. It would be responsible at this point to go another mile. We discussed key issues that have not yet been resolved. Our negotiating teams have been working day and night for the past few days.
Despite the exhaustion after a year of contacts, even though the deadlines have been missed time and time again, we think it would be responsible to go another mile at this point.
Therefore, we instructed the negotiating teams to check whether an agreement can be reached even at this late stage. "
Johnson said: "Where there is life, there is hope. Britain will certainly not leave the talks, but it seems more certain now that we need to prepare for the application of the World Trade Organization's regulations."
British Foreign Secretary Dominic Raeb had previously warned that the EU would pay a heavier price if no agreement was reached.
"In his opinion, the EU is creating difficulties in the talks because it fears that the Brexit will succeed and that other countries will ask to leave."