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Home / World

Going 'the extra mile': UK, EU keep up Brexit trade talks

By Raf Casert, Jill Lawless
AP·
13 Dec, 2020 07:17 PM7 mins to read

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European Union flags, seen through Christmas decoration lights, flutter in the wind outside the European Commission headquarters in Brussels, Belgium. Photo / AP

European Union flags, seen through Christmas decoration lights, flutter in the wind outside the European Commission headquarters in Brussels, Belgium. Photo / AP

Teetering on the brink of a no-deal Brexit departure, Britain and the European Union stepped back from the void today and agreed to continue trade talks, although both downplayed the chances of success.

British Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen ditched a self-imposed deadline and promised to "go the extra mile" to clinch a post-Brexit trade agreement that would avert New Year's chaos and costs for cross-border commerce.

"Where there's life, there's hope," said Johnson, offering little else as rationale to keep on with talks that have struggled to make headway for most of the year and need to be finished before January 1, when the transition period for Britain, which left the EU last January, ends.

London and Brussels agreed to 'go the extra mile' to try to reach an elusive trade agreement despite missing their latest deadline to avert a turbulent exit for Britain from the European Union at the end of the month https://t.co/i5ded0KRHo pic.twitter.com/9yOYwZL8qL

— Reuters (@Reuters) December 13, 2020

With hundreds of thousands of jobs and tens of billions in trade at stake, von der Leyen said after her phone call with Johnson that "we both think it is responsible at this point in time to go the extra mile."

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All this, she added, "despite the exhaustion after almost a year of negotiations and despite the fact that deadlines have been missed over and over."

UK and EU negotiators were still talking at EU headquarters, with less than three weeks to go until the UK leaves the economic embrace of the 27-nation bloc.

But their leaders failed to present visible progress on any of the outstanding issues of fair-competition rules, mechanisms for resolving future disputes and fishing rights.

Brexit: Are chances of a trade deal rising again? https://t.co/Ev8aU6chKs

— Laura Kuenssberg (@bbclaurak) December 13, 2020

Johnson said the "most likely" outcome was that the two sides wouldn't reach a deal and would trade on World Trade Organisation terms, with the tariffs and barriers that would bring.

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European Council President Charles Michel warned there could not be a deal "at any price, no. What we want is a good deal, a deal that respects these principles of economic fair play."

It remains unclear how much of the gap between the two sides is negotiating tactics and how much reflects fundamental differences that make a deal unlikely.

"Negotiations need to have a purpose," said Fabian Zuleeg of the EPC think-tank. "We just spent another four-five days not moving forward, so adding more days doesn't really help."

He said the extension of talks just seems an indication "that neither side wants to be blamed for no deal."

Latest from me: this chaos is the endpoint of a Tory story that goes back to the blessed Margaret. They're reckless revolutionaries now, not conservatives https://t.co/38qcpvFhAL

— John Harris (@johnharris1969) December 13, 2020

It has been four and a half years since Britons voted narrowly to leave the EU and — in the words of the Brexiteers' slogan — "take back control" of the UK's borders and laws.

It took more than three years of wrangling before Britain left the bloc's political structures on January 31. Disentangling economies that have become closely entwined as part of the EU's single market for goods and services took even longer.

The UK has remained part of the single market and customs union during an 11-month post-Brexit transition period. That means so far, many people will have noticed little impact from Brexit.

On January 1, it will feel real.

New Year's Day will bring huge changes, even with a deal. No longer will goods and people be able to move between the UK and its continental neighbours.

Trade deals aren’t about asserting one’s independence, they about our inter-dependence - says Spain’s Foreign Minister commenting on what she identifies as problem at the heart of talks #Brexit https://t.co/i2FL3L22lO

— Katya Adler (@BBCkatyaadler) December 13, 2020

Exporters and importers face customs declarations, goods checks and other obstacles. EU citizens will no longer be able to live and work in Britain without a visa — though that doesn't apply to the more than three million already there - and Britons can no longer automatically work or retire in the EU.

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There are still unanswered questions about significant areas, including security cooperation between the two sides and access to the EU market for Britain's huge financial services sector.

Without a deal, the disruption would be far greater.

The UK Government has acknowledged a chaotic exit is likely to bring gridlock at Britain's ports, temporary shortages of some goods and price increases for staple foods.

It's really not well grasped in London how little time the rest of the EU has for its amateur dramatics.

Far more important than Brexit in Paris, Brussels, Berlin, Rome etc are topics like the eurozone, Schengen, data, migration, defence, China-EU relations, carbon targets...

— Jeremy Cliffe (@JeremyCliffe) December 13, 2020

Tariffs will be applied to many UK goods, including 10 per cent on cars and more than 40 per cent on lamb, hurting the UK economy as it struggles to rebound from the impact of the coronavirus pandemic.

Johnson insists the UK will still "prosper mightily" on those terms but British businesses have been sounding the alarm with increasing urgency.

"The 11th hour has passed and every passing moment of uncertainty makes it harder for businesses to prepare effectively for January 1," said Helen Dickinson, chief executive of the British Retail Consortium.

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While both sides want a deal, they have fundamentally different views of what it entails.

Brexiteers seem to severely overestimate the number of people in the EU who still follow the Brexit saga or even care at all whether there will be a deal

— Mathieu von Rohr (@mathieuvonrohr) December 13, 2020

The EU fears Britain will slash social and environmental standards and pump state money into UK industries, becoming a low-regulation economic rival on the bloc's doorstep, so is demanding strict "level playing field" guarantees in exchange for access to its market.

The UK Government claims the EU is trying to bind Britain to the bloc's rules and regulations indefinitely, rather than treating it as an independent nation.

Johnson today repeated his willingness to go to Brussels or other European capitals if it would help seal a deal.

His attempts to speak directly to key national leaders including French President Emmanuel Macron and German Chancellor Angela Merkel have been rebuffed by the EU, which says the Commission speaks for all EU nations in the Brexit negotiations.

Brexit: What will change on 1 January 2021 for people in UK? https://t.co/62C7tBvg7l

— The Guardian (@guardian) December 13, 2020

Britain's belligerent tabloid press urged Johnson to stand firm, and floated the prospect of Royal Navy vessels patrolling UK waters against intruding European fishing vessels.

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But others, in Britain and across the EU, urged the two sides to keep talking.

"Every opportunity to still reach an agreement is highly welcome," said Merkel.

Spanish Foreign Minister Arancha Gonzalez Laya said a no-deal Brexit would be a "double whammy" for economies already battered by the pandemic.

Irish Prime Minister Micheal Martin, whose economy is more entwined with Britain's than any other EU nation, said "even at the 11th hour, the capacity in my view exists for the United Kingdom and the European Union to conclude a deal that is in all our interests."

- AP

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