There are improving signs that a Brexit trade deal can be clinched ahead of Boris Johnson’s October deadline – but only if the two sides can compromise.
With so little time left before the 15th October to have a meaningful deal between the two sides, EU and UK negotiators have been working round the clock to finalise areas from fishing to state aid – among some of the most difficult areas of discussion.
Following the UK’s decision to leave the European Union, Prime Minister Boris Johnson has been under increased pressure from business groups and political figures across the spectrum to find a deal before the end of the year. As British banks face the loss of passporting rights, and the port of Dover looks to welcome long queues of lorries, the pressure to find a deal has become very real.
For France and Ireland in particular, finding a Brexit deal is crucial to minimise the disruption to port traffic and cross-border trade. Following the pandemic, the negotiations have faced delays as governments battled to stop the spread of coronavirus. And with the new rise in infections, there could be more difficulties ahead for the EU and the UK if they can’t find a way to make a deal.
In recent weeks, Sterling has faced a sell off after Britain introduced a new Internal Market Bill that faced opposition from across the political spectrum, raising the prospect that the UK could break international law if it were ever implemented in a no-deal scenario.
With less than 3 weeks to go, a renewed emphasis on getting a deal has become increasingly important for both sides as the pandemic batters economies and leaves little room for further disruption.