CNBC: Where’s Brexit at? The UK left the EU months ago but both sides are still at loggerheads
BRUSSELS, BELGIUM – MAY 15: European Commissions UK Task Force Chief Negotiator, Michel Barnier talks to media about the third round of talks with the United Kingdom on Brexit on May 15, 2020 in Brussels, Belgium. (Photo by Thierry Monasse/Getty Images)
Where’s Brexit at? The UK left the EU months ago but both sides are still at loggerheads
One of the sticking points is about the “level playing field” for businesses.
They also seem to disagree about the implementation of previous agreements.
If they don’t have an agreement by the end of the year, there could be hefty duties on goods and services moving across the English Channel.
The U.K. and the EU have many differences yet to overcome as they try to get a new trade deal by the end of the year — a political hot potato that could bring additional economic uncertainty, for transition period until the end of the year, so it can negotiate new trade arrangements with its closest partners. However, after three rounds of talks, negotiators have complained about the lack of progress.
“For the U.K., and for Johnson in particular who faces more and more political challenges, the temptation will be great to group the economic disruption from Covid and Brexit together,” Anna Rosenberg, from the advisory firm Signum Global, told CNBC.
She explained the prime minister can blame the economic disruption on the pandemic ahead of four additional years in office to fix the economy.
“Of course, the hit to the U.K. economy will be unwelcome and we have to brace for a significant recession, irrespective of the final Brexit deal,” she also said.
However, the EU would also lose from a no-trade deal with the U.K., mainly at a time when the region is also facing economic challenges.
“For the EU, a Brexit outcome in the absence of a comprehensive deal will be bad news,” Rosenberg said, “it will hit already fragile firms across the EU and add to the economic worries.”