Brexit brinkmanship: Johnson says prepare for no-deal, cancels trade talks

[rooster59]

Brexit brinkmanship: Johnson says prepare for no-deal, cancels trade talks

By Guy Faulconbridge and William James

 

FILE PHOTO: Britain's Prime Minister Boris Johnson in London, Britain October 12, 2020. REUTERS/Toby Melville/Pool

 

LONDON (Reuters) - Prime Minister Boris Johnson said on Friday it was now time to prepare for a no-trade deal Brexit unless the European Union fundamentally changed course, bluntly telling Brussels that there was no point in continuing the negotiations.

 

A tumultuous "no deal" finale to the United Kingdom's five-year Brexit crisis would sow chaos through the delicate supply chains that stretch across Britain, the EU and beyond - just as the economic hit from the coronavirus pandemic worsens.

 

At what was supposed to be the "Brexit summit" on Thursday, the EU delivered an ultimatum: it said it was concerned by a lack of progress and called on London to yield on key sticking points or see a rupture of ties with the bloc from Jan. 1.

 

"I have concluded that we should get ready for January 1 with arrangements that are more like Australia's based on simple principles of global free trade," Johnson said.

 

"With high hearts and with complete confidence, we will prepare to embrace the alternative and we will prosper mightily as an independent free trading nation, controlling and setting our own laws," he added.

 

EU heads of government, concluding a summit in Brussels on Friday, rushed to say that they wanted a trade deal and that talks would continue, though not at any price.

 

German Chancellor Angela Merkel, Europe's most powerful leader, said it would be best to get a deal and that compromises on both sides would be needed. French President Emmanuel Macron said Britain needed a Brexit deal more than the 27-nation EU.

 

Johnson's spokesman said talks were now over and there was no point in the EU's chief negotiator Michel Barnier coming to London next week barring a change in approach. [L8N2H747X]

 

However, Barnier and his British counterpart David Frost had agreed to speak again early next week, Downing Street said.

 

The pound oscillated to Brexit news, dropping a cent against the U.S. dollar on Johnson's remarks but then rising before falling again on his spokesman's comments.

 

RHETORIC?

 

After demanding that London make further concessions for a deal, EU diplomats and officials cast Johnson's move as little more than rhetoric, portraying it as a frantic bid to secure concessions before a last-minute deal was done.

 

Dutch Prime Minister Mark Rutte said he thought Johnson had signalled that London was ready to compromise.

 

While U.S. investment banks agree that a deal is the most likely ultimate outcome, the consensus was wrong on the 2016 Brexit referendum: when Britons voted by 52-48% to leave, markets tumbled and European leaders were shocked.

 

Asked if he was walking away from talks, Johnson said: "If there's a fundamental change of approach, of course we are always willing to listen, but it didn't seem particularly encouraging from the summit in Brussels.

 

"Unless there is a fundamental change of approach, we're going to go for the Australia solution. And we should do it with great confidence," he said.

 

A so-called "Australia deal" means that the United Kingdom would trade on World Trade Organization terms: as a country without an EU trade agreement, like Australia, tariffs would be imposed under WTO rules, likely causing significant price rises.

 

European Commission President Ursula von der Leyen said she was keen for a deal, though Macron was more downbeat.

 

"The state of our talks is not that we are stumbling over the issue of fishing, which is the British's tactical argument, but we're stumbling over everything. Everything," Macron said.

 

"The remaining 27 leaders of the EU, who chose to remain in the EU, are not there simply to make the British prime minister happy," he added.

 

Merkel called for Britain to compromise. "This of course means that we, too, will need to make compromises," she said.

 

WTO TERMS

 

Britain formally left the EU on Jan. 31, but the two sides have been haggling over a deal that would govern trade in everything from car parts to medicines when informal membership known as the transition period ends Dec. 31.

 

Johnson had repeatedly asserted that his preference is for a deal but that Britain could make a success of a no-deal scenario, which would throw $900 billion in annual bilateral trade into uncertainty and could snarl the border, turning the southeastern county of Kent into a vast truck park.

 

The EU's 27 members, whose combined $18.4 trillion economy dwarfs the United Kingdom's $3 trillion economy, says progress had been made over recent months though compromise is needed.

 

Main sticking points remain fishing and the so-called level playing field - rules aimed at stopping a country gaining a competitive advantage over a trade partner.

 

(Additional reporting by Michael Holden, Elizabeth Piper and Kate Holton in London, Gabriela Baczynska and John Chalmers in Brussels, Kirsti Knolle in Berlin and Michel Rose in Paris; Writing by Guy Faulconbridge; Editing by Mark Heinrich and Toby Chopra)

 

-- © Copyright Reuters 2020-10-17

 

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[luckyluke]

20 minutes ago, rooster59 said:

Johnson's spokesman said talks were now over and there was no point in the EU's chief negotiator Michel Barnier coming to London next week barring a change in approach. [L8N2H747X]

 

However, Barnier and his British counterpart David Frost had agreed to speak again early next week, Downing Street said.

I am rather perplexed with these announcements, seems contradictory. 

Or does that mean that no one care about what Mr. Johnson is saying,

and negotiations goes simply on. 

[bodga]

33 minutes ago, rooster59 said:

The EU's 27 members, whose combined $18.4 trillion economy dwarfs the United Kingdom's $3 trillion economy,

Hilarious so if  those 27  countries  all had an 3  trillion economy it should   be  81   trillion instead of the paltry 18.4  trillion

[Matzzon]

Yes, it seems like no one is caring about what Mr, Johnson is saying, which at least show some intelligence somewhere in the leadership of Britain.

This is a total moron, that do not understand that he can not go against his peoples wishes. I guess the common citizen of the UK is going to have to change much of their daily life, just because ne person have a bad brain.

[Matzzon]

2 minutes ago, bodga said:

Hilarious so if  those 27  countries  all had an 3  trillion economy it should   be  81   trillion instead of the paltry 18.4  trillion

To me it still looks like over 400% more economical power, as well as free trade deals. How do you see that?

[allane]

Why should the EU negotiate with an ex-member, that voted to leave ? They should let Britain stand outside in the cold for twenty or twenty-five years. Then maybe let them back in, if they ask nicely.

[vogie]

11 minutes ago, luckyluke said:

I am rather perplexed with these announcements, seems contradictory. 

Or does that mean that no one care about what Mr. Johnson is saying,

and negotiations goes simply on. 

Does anyone believe what the media says anymore, whatever the source, if we are to understand it, Lord Frost has told Mr Barnier not to bother coming unless the EU can try to understand the UKs position. Macron has said he still wants total fishing rights to the UKs waters and by anybodies standard that has to be an impossible ask. So when Macron said he wants to protect the French fishing industries, he has ended up with nothing and as the rest of the EU, so let's all clap for Mr Macron.

So unless Mr Barnier comes across on a rubber dinghy, he'll not be coming.

[edwinchester]

There will be no downside to Brexit, only considerable upside.

David Davis

 

The day after we vote to leave we hold all the cards and can choose the path we want.

Michael Gove

 

Getting out of the EU can be quick and easy, the UK holds most of the cards.

John Redwood

 

The FTA that we do with the EU should be one of the easiest in human history.

Liam Fox

 

I think we could very easily get a better trade deal than we have at the moment.

Douglas Carswell

 

Trade relations can be sorted out in an afternoon over a cup of tea.

Gerald Batten

 

One day these lying incompetents will be held to account for the damage they have inflicted and continue to inflict on the UK.

 

 

 

 

 

 

 

 

 

 

 

 

 

Edited October 16, 2020 by edwinchester

[dimitriv]

5 minutes ago, allane said:

Why should the EU negotiate with an ex-member, that voted to leave ? They should let Britain stand outside in the cold for twenty or twenty-five years. Then maybe let them back in, if they ask nicely.

 

Exactly. Close the tunnel, cancel all flights, nothing in, and nothing out. Let them trade with the US and Australia, because it seems that's the only thing that will make them happy.

 

I am so tired of the UK.

 

 

[dimitriv]

7 minutes ago, vogie said:

So when Macron said he wants to protect the French fishing industries, he has ended up with nothing

 

Same can be said about the UK. 75% of fish caught by UK fisherman goes to the EU. And from what I understand that will be blocked for the full 100%. So 75% of them will be without a job very soon.

 

 

Edited October 16, 2020 by dimitriv

[vogie]

Just now, dimitriv said:

 

Same can be said about the UK. 75% of fish caught by UK fisherman goes to the EU. And form what I understand that will be blocked for the full 100%. So 75% of them will be without a job very soon.

 

 

So Macron insisting on 100% fishing rights to our waters is ok in your books?

[dimitriv]

2 minutes ago, vogie said:

So Macron insisting on 100% fishing rights to our waters is ok in your books?

 

Yes, of course. It's something you can agree with, or not.  It can be part of a deal. And if there is no deal it means that the UK fishermen will also lose their jobs. 

[luckyluke]

9 minutes ago, vogie said:

So unless Mr Barnier comes across on a rubber dinghy, he'll not be coming.

"However, Barnier and his British counterpart David Frost had agreed to speak again early next week, Downing Street said." 

 

I don't read the meeting of next week, will take place in the U.K..

[vogie]

Just now, dimitriv said:

 

Yes, of course. It's something you can agree with, or not.  It can be part of a deal. And if there is no deal it means that the UK fishermen will also lose their jobs. 

You havn't answered my question, I'll repeat it, "is Macrons insistance on 100% fishing rights to our waters acceptable" yes or no?

[bodga]

26 minutes ago, Matzzon said:

To me it still looks like over 400% more economical power, as well as free trade deals. How do you see that?

I see 20 weak  countries  bailed  out by a  very few stronger  ones, how do you see that

[dimitriv]

5 minutes ago, vogie said:

You havn't answered my question, I'll repeat it, "is Macrons insistance on 100% fishing rights to our waters acceptable" yes or no?

 

I answered your question. It can be part of a deal. Macron asks one thing, and in return the UK fishermen can sell their fish to the EU. Selling to the EU is a favor the UK can get, or not if there is no deal. I really don't see the problem. The UK is independent now, so they have the right to refuse this.

 

Macron didn't say that he has warships stand-by to let French fishermen fish in UK waters. He just asks politely, and the UK can refuse. So they did. And now the UK fishermen will lose their jobs.

 

 

 

 

 

Edited October 17, 2020 by dimitriv

[dimitriv]

5 minutes ago, bodga said:

I see 20 weak  countries  bailed  out by a  very few stronger  ones, how do you see that

 

And the UK is not a weak country?  Their economy is similar to Spain, Italy etc.

[luckyluke]

3 minutes ago, vogie said:

You havn't answered my question, I'll repeat it, "is Macrons insistance on 100% fishing rights to our waters acceptable" yes or no?

It is not that simple.

It all depends what France ( the E.U.) is ready to give the U.K. in lieu of. 

Everything has a price. 

Of course if the E.U. isn't prepared to give anything of substance, it will be completely unacceptable for the U.K..

[vogie]

15 hours ago, dimitriv said:

 

I answered your question. It can be part of a deal. Macron asks one thing, and in return the UK fishermen can sell their fish to the EU. Selling to the EU is a favor the UK can get, or not if there is no deal. I really don't see the problem. The UK is independent now, so they have the right to refuse this.

 

Macron didn't say that he has warships stand-by to let French fishermen fish in UK waters. He just asks politely, and the UK can refuse. So they did. And now the UK fishermen will lose their jobs.

It is not acceptable the French controlling our waters, end of. 

[BritManToo]

17 minutes ago, dimitriv said:

And the UK is not a weak country?  Their economy is similar to Spain, Italy etc.

Apparently not, it's in the world top 10, 6th largest in the world out of 173 countries.

https://www.investopedia.com/insights/worlds-top-economies/

Edited October 17, 2020 by BritManToo

[izod10]

37 minutes ago, dimitriv said:

 

Exactly. Close the tunnel, cancel all flights, nothing in, and nothing out. Let them trade with the US and Australia, because it seems that's the only thing that will make them happy.

 

I am so tired of the UK.

 

 

You know the answer then.

   EU were offering UK little more than WTO terms,the UK have trump card here..Eire.  Whatever the EU determines to hamper trade the UK recipricates on Eire. cost the EU aplenty

[dimitriv]

4 minutes ago, BritManToo said:

Apparently not, it's in the world top 10, 6th largest in the world out of 173 countries.

https://www.investopedia.com/insights/worlds-top-economies/

 

I am not sure if you can be proud that the UK economy is bigger than the Luxembourg economy.

 

Divide the size of the economy by the number of people living in the UK and you will see that 1/3 is missing compared to some other EU countries. 

 

The UK is a weak country, income of people is less than in many EU countries. 

 

[dimitriv]

10 minutes ago, vogie said:

It is not acceptable the French controlling our waters, end of. 

 

You are right, the UK has the right to refuse. And in return the EU refuses to give the UK the right to sell fish to the UK. So 75% of UK fishermen will lose their job very soon.

 

 

[bodga]

27 minutes ago, dimitriv said:

 

And the UK is not a weak country?  Their economy is similar to Spain, Italy etc.

its  not down in the gutter  like many of those other countries that dont even get close to  3 trillion

[vogie]

16 minutes ago, luckyluke said:

It is not that simple.

It all depends what France ( the E.U.) is ready to give the U.K. in lieu of. 

Everything has a price. 

Of course if the E.U. isn't prepared to give anything of substance, it will be completely unacceptable for the U.K..

But these are trade talks, we wish to buy and sell to the EU and vice versa, how simple is that. The complications set in when each of the 27 nations that makes up the EU are pulling in different directions, they cannot decide between themselves the best way to procede with these talks. 

They are not used to someone like Boris saying 'no', the last four years has been a total waste of time, we all knew that you cannot negotiate with an organisation like the EU, the sooner we walk the better and Macron will go down in history as the man that broke the EU.

[BritManToo]

Just now, dimitriv said:

The UK is a weak country, income of people is less than in many EU countries. 

Where does your home country rank?

Don't really see how any country in the top 20 could be considered 'weak'.

And if the UK is 'weak', how come it was expected to contribute 25% of the EU funding.

Isn't the EU supposed to be funding the weaker countries?

 

If it were up to me (luckily it isn't), I'd be conscripting all the young Brits and preparing for a war with Europe.

It seems to be the only game the Germans and French understand, and we always beat them at it.

[vogie]

3 minutes ago, dimitriv said:

 

You are right, the UK has the right to refuse. And in return the EU refuses to give the UK the right to sell fish to the UK. So 75% of UK fishermen will lose their job very soon.

 

 

No mention of the French fishermen that will lose their jobs I see, you know the ones that Macron promised to protect. The problem with Macron that his arrogance and his ego is bigger than the Eiffel Tower.

[OneMoreFarang]

1 hour ago, rooster59 said:

Prime Minister Boris Johnson said on Friday it was now time to prepare for a no-trade deal Brexit

And I thought they are prepared since years.

Didn't those UK politicians think about what they want before they promoted Brexit?

And wasn't it their responsibility to plan and prepare for Brexit after the people voted for it 4 years ago.

The EU's position didn't change much in all that time.

Amazing UK.

[BritManToo]

1 minute ago, vogie said:

No mention of the French fishermen that will lose their jobs I see, you know the ones that Macron promised to protect. The problem with Macron that his arrogance and his ego is bigger than the Eiffel Tower.

Yeah, no respect for a guy that married his mother.

 

As for trade deals, I'm sure China will sell the UK everything they need for cheaper than Europe.

Maybe we could do a deal for a Chinese naval base on UK soil if the Americans won't play ball.

Edited October 17, 2020 by BritManToo

[vogie]

4 minutes ago, Victornoir said:

As said before, fishing is Macron's bait to get no-deal.

Apart from certain German manufacturers, the EU has no advantage in a trade agreement with its former outgoing partner. The objective is to take over the European part of UK financial activities, to eliminate a car competitor and to tax all UK exports.

In the other way, imports will also be taxed but it is the British consumer who will pay.

I also believe that Barnier had no-deal as unofficially mission and that he brilliantly achieved his goal.

Obfuscation. Seems to me that the Euros are extremely upset this morning, they are not used to a country standing up to them.