The Brexit status has yet to be decided as we are reaching the end of the year as Boris Johnson’s U.K. government prepares for a no-deal.
2020 is almost ending and the pressure between the European Union (EU) and the U.K. to land on a deal draws near. A trade agreement would be needed before the year ends or else U.K. and EU businesses will result to follow World Trade Organization rules.
To start the week, people are observing on what the future holds for both the U.K. and EU as the Board of Trade will be meeting for the first time regarding its strategies moving forward.
Today the new Board of Trade meets for the 1st time.
As 🇬🇧 emerges as an independent trading nation, it will:
👉Campaign for free trade in 🇬🇧 & around the 🌍
👉Help 🇬🇧 push new frontiers in areas like digital & green trade
👉Advise on trade strategyhttps://t.co/5IDm4E2Btb
— Liz Truss (@trussliz) October 19, 2020
The blame game continues for both sides
However, some analysts are already expecting that there is a less likely chance that a deal will push through.
Prime minister Boris Johnson already told the U.K. last Friday to prepare for a no-deal Brexit as per The Guardian. His spokesperson reiterated that the trade talks were over since the EU did not change their negotiating position.
Additionally, senior Cabinet minister Michael Gove told reporters over the weekend that “there is a less than 50% change of the U.K. striking a post-Brexit trade deal” as he told Sky News:
“Let’s see if the EU appreciates the importance of reaching a deal and the importance of moving ground.”
Hamburg-based Berenberg recently said in a note as per CNBC that the political compromises would have to be struck within the next three weeks in order to ratify a deal before the end of the year.
Last month, senior economist Kallum Pickering also speculated that there is a 50% chance for both parties to agree on a deal that is leaned to be a mix of a “no-deal” and “semi-hard” exit.
European markets drop over Brexit
Investors are also on a close watch on what the reaction on the markets this will be once the Brexit deal has been decided before the end of the year.
The European stock markets have reacted negatively as COVID-19 and Brexit concerns have weighed over the incoming U.S. stimulus.
Featured image courtesy of stux/Pixabay