Britain And European Union Enter Critical Brexit Negotiations As Deadline Looms

Dec 07, 2020 ( via COMTEX) --

Post-Brexit trade talks hang in the balance as Britain and the European Union make a last-ditch effort to reach a deal and avoid a disorderly exit that could take place in less than a month.

With growing fears of “no-deal” chaos after the United Kingdom leaves the European Union on December 31, formal talks are resuming in Brussels as British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen meet to review the current situation.

Irish Prime Minister Micheal Martin said on Sunday the chances of a deal were 50-50. Investment bank JPMorgan said odds of a no-trade deal exit had risen to one-third (33%) from 20% previously.

The British pound fell in trading Monday on concerns that there would be no agreement covering annual trade between Britain and the European Union worth nearly $1 trillion.

European Union Chief Negotiator Michel Barnier was pessimistic on the prospects of an agreement on Monday. In London, the British government said France has to make concessions on fishing, and the European Union has to drop new demands on fair competition.

Britain, which joined the European Union in 1973, formally left the bloc on January 31 but has been in a transition period since then under which rules on trade, travel and business remain unchanged. For weeks, the two sides have been haggling about fishing rights in British waters, ensuring fair competition for companies and ways to solve future trade disputes.

Failure to secure a deal could result in clogged borders, upset financial markets and disrupted supply chains across Europe and beyond as the world tries to cope with the vast economic cost of the COVID-19 pandemic.

The British Pound Sterling fell 1% against the U.S. Dollar to $1.328. With just days left for a deal to be reached, European Union diplomats said it a decisive moment for both the United Kingdom and the European continent.

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