No new deadline was announced on Sunday, but Van der Leyen said he was responsible for “going the extra mile” and had a “constructive and effective” phone call with Johnson.
Speaking in London, Johnson warned that both sides were “far behind on important issues” and that “it is now quite possible that we should be prepared for WTO rules and Australian rules.”
Australia does not have a free trade agreement with the European Union, although negotiations are underway to secure one. The expression “Australian words” was widely used by Johnson and his government as a term for Brexit without an agreement.
But the term is misleading because Australia and the European Union already have a mutual accreditation agreement, which makes it easier for manufacturers to obtain the regulatory approvals required to sell their products. However, the UK has no such agreement with the EU.
If no agreement is reached, it will be forced to trade with the alliance in accordance with the rules laid down by the World Trade Organization. This could mean new fees and other restrictions such as regulatory checks and paperwork.
The British Prime Minister said his government would continue to work to reach a trade agreement, but warned that there should not be a resolution by the January 1 deadline. “I think a deal needs to be done, but we’re far from important things.
“We need to regain control of our fisheries,” Johnson said.
The EU and the UK have been trying for months to reach an agreement before the Brexit “transition period” ends at midnight on December 31. Earlier this week, a joint report by Johnson and Van der Leyen cited three “important” implications: fishing rights, the UK’s ability to differentiate EU standards and the legal oversight of any agreement.
Failure to reach a trade agreement will be economically painful for both the EU and the UK, although the UK’s impact will be huge in proportion as the EU is its largest trading partner. Loss of access to its single market would cut off UK businesses from Europe’s 450 million consumers, burdening them with extra charges and red tape.
The UK Office for Budget Responsibility (OBR) estimates that Brexit, which has no contract, will hit $ 40 billion ($ 53 billion) or 2% of the UK’s economic output by 2021 and will lay off more than 300,000 people in the second half. Next year.
However, even if London and Brussels reach an agreement in November, their new trade relationship is expected to lose about 4% of production over the long term compared to the rest of Britain in the EU.
He said Ireland, the United Kingdom and the European Union “absolutely compelled” to reach a post-Brexit agreement, which would cause more losses on the EU side. The Irish prime minister, either Taoist Michael Martin, told the BBC on Sunday that any deal would “have a huge impact on workers” in the UK, Ireland and across Europe, and would mean a “terrible failure of statistics”.
Johnson said on Thursday he had instructed his cabinet to prepare for the failure of the talks, and that the EU had announced plans to open its borders to commercial aircraft, trains and lorries.
The UK Ministry of Defense has said that the UK will have “a variety of strong enforcement measures” at the end of the Brexit transition period, including “numerous” maritime patrol vessels available on its territorial waters.