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‘Strong Chance’ that UK-EU trade talks will fail — Boris Johnson

Britain’s trade talks with the European Union confront the”strong potential” of ending with no arrangement, Prime Minister Boris Johnson cautioned after fulfilling his ministers on Thursday.

Johnson said that the UK should prepare an”Australian affair with the EU compared to a Canadian connection with the EU.”

The reference Australia is Johnson’s favorite phrasing to describe that a no-deal exit. Australia doesn’t have a free trade arrangement with the EU, whereas Canada does.

The new arrangement will start on January 1, 2021, once the transition period which followed Britain’s departure from the EU concludes.

A no-deal split could attract tariffs and other obstacles that could damage both sides, but many economists believe the British market would require a larger hit since it does nearly half of its commerce with the EU.

European leaders meeting in Brussels on Thursday were both cynical about the prospects of an arrangement.

“I’m a little more gloomy now, so much as I can hear,” Swedish Prime Minister Stefan Lofven said in an EU summit where European Commission President Ursula von der Leyen briefed the 27 leaders onto her failed supper with Johnson.