Brexit Talks Delayed as Governments Battle Coronavirus
Talks between the U.K. and the European Union over their post-Brexit relationship have been delayed because of the coronavirus.
(Bloomberg) --
Talks between the U.K. and the European Union over their post-Brexit relationship have been delayed because of the coronavirus, adding to pressure on Prime Minister Boris Johnson to postpone Britain’s final break with the bloc at the year-end.
Wednesday’s round of discussions, which had been planned to take place by video link, may resume later in the week, according to two people with knowledge of the matter who declined to be identified because they weren’t authorized to speak publicly.
“Both sides remain fully committed to the negotiations and we remain in regular contact with the European Commission to consider alternative ways to continue discussions,” the U.K. government said in a statement.
The delay narrows an already limited time window for the two sides to strike a trade deal. Johnson has threatened to walk away in June if he doesn’t think he has a good chance of a deal. If no agreement is reached, the U.K. and the EU will default to trading on World Trade Organization terms on Jan. 1, 2020, meaning the return of tariffs and quotas.
“Even if the U.K. gets exactly what it wants in this agreement, this is going to be a huge shock to the U.K. economy,” Christophe Bondy, a partner at the London-based International Trade and Investment Law group of Steptoe & Johnson LLP, told a parliamentary committee earlier on Tuesday. “To impose a double shock at this time would be extremely challenging.”
The government has so far ruled out extending the year-end deadline.
©2020 Bloomberg L.P.