UK Prime Minister said on Friday that they are preparing for No-Trade Deal Brexit.
The deal will be finally off the table in 10 weeks. European Union has refused to negotiate and also there can be no deal unless Brussels changes the course.
The withdrawal of the Brexit deal would lay the foundation of chaos in the supply chain involving Britain, the European Union, and beyond. It is going to be devastating for the economy. Moreover, it will an even bigger blow after the hit from the pandemic that economies took.
EU delivered an ultimatum at the Brexit Summit on Thursday. It called on London to yield on key sticking points or face a rupture in the ties with the bloc from January 1st.
The Prime Minister further said that they are going to change the fundamental approach. Hence, go for the Australia Solution and that too with great confidence. Australia Solution offers the third country approach that trades with the rules and regulations of the World Trade Organisation.
Britain had initially asked for the ‘Canada Deal’ but the EU is just not ready for it. Prime Minister also said that he was curious to know that after 45 years of membership they cannot be offered a deal that Canada has been given. On the other hand, the EU says that Britain has the world’s 6th largest economy and geographical advantage. Thus, the Canada deal would just pose a bigger competitive challenge for them against Britain that distant Canada.
Although Britain has preferred to have a deal, Prime Minister Johnson still believes that Britain can make a success out of a no-deal scenario. In the meanwhile, the EU is also willing to strike a deal provided Johnson gives them to ground. Prime Minister is just not ready to compromise on his part of the deal.