Sterling slumps as Boris warns Britain is prepared for no deal Brexit

Marco Green
February 5, 2020

The EU is constantly saying that it took seven years to arrange the Canada deal, ok it did; but you've now got another country that wants to adopt nearly exactly the same thing, in which case, as Boris Johnson has said, it's oven-ready, it's off the shelf, let's just move on with that.

On Monday there were few surprises for trade experts, Mr. Lowe said, adding that serious progress in talks is unlikely before the fall.

Mr Johnson used a speech in London, to stress his commitment to free trade - and signal his determination to secure an arrangement with Brussels along the lines of that agreed between the European Union and Canada.

Britain, Mr. Johnson said, was "ready to take off its Clark Kent spectacles" and emerge as the Superman of global free trade. But his uncompromising tone over trade underscored the scale of the challenge ahead.

The European Commission hopes the streamlined rules will avoid further delaying the start of access negotiations when aspiring members have met the conditions for such talks. Though of limited economic significance, fishing is symbolically and emotionally important both in Britain and in continental Europe.

"The UK will maintain the highest standards in these areas, better in many respects than those of the European Union, without the compulsion of a treaty". That helps us fund This Is Money, and keep it free to use. The catch, however, was that dependent on the United Kingdom agreeing to "specific and effective guarantees to ensure a level playing field" so competition "is and remains open and fair".

An agreement must also be reached on fishing in British waters.

The worries stem from the announcement made by the European negotiator Michel Bernier on Monday, who said that the EU is ready to offer to the United Kingdom an ambitious trade agreement, provided London is willing to keep the bloc's high standards of social topics, environment, taxes and state help. This seemed to imply Johnson's willingness not to conclude a trade agreement with the European Union, because Australia does not have that either.

The EU commission's idea is that other sectors can be added later - as there are less than 11 months to sort out the framework deal before the transition period ends at the end of 2020. Citing statistics, on Monday's (February 3rd) market closure, the British currency ended up the day more than 1.5 per cent lower against its American counterpart to 1.2993, remarking the Pound Sterling's largest intra-day plunge against a Dollars greenback in more than one month and a half.

"There will be customs formalities, origin rules, certification".

What is unmistakable to note is that this trade deal is essential to the British economy.

"At best it removes tariffs and quotas", he said.

Stephen Castle reported from London and Matina Stevis-Gridneff reported from Brussels.

Other reports by Click Lancashire

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