British Prime Minister Boris Johnson said that his country will withdraw from negotiations on a trade agreement with the EU, unless a compromise is reached on this issue by October 15.

With such a statement, he made on the eve of a new round of negotiations with the European Union on trade relations with the UK after Brexit, which will be held in London on September 8.

“If we cannot agree by this date, then I do not see the possibility of us concluding an agreement on free trade, and both sides should come to terms with this and move on,” he said.

Johnson said the negotiations were at an impasse and an agreement could be reached only if the negotiators from Brussels "rethink their current positions."

At the same time, the British Prime Minister noted that leaving the EU without a trade agreement will bring the country "colossal prosperity" even if it receives a "trade agreement with the EU, similar to the Australian one," which, in his words, would still be a "good result."

Australia conducts trade with the EU according to WTO rules and tariffs.

“We, as a government, are preparing for this, the preparation covers our border areas and our ports ... We will have full control over our laws, regulations and fishing grounds,” the Prime Minister said.

However, Johnson did not completely rule out the option with a deal, saying that if the EU revises its current position, there will still be an opportunity to conclude an agreement.

“But we cannot and will not deviate from what constitutes the foundations of state independence,” the British leader said.

Position of the European Union

Earlier, the chief negotiator on Brexit from the EU, Michel Barnier, blamed the lack of progress in the negotiations on London and said that leaving the trade zone of a united Europe without an agreement would primarily hit British citizens.

Without concluding an additional trade agreement, new duties will be introduced on the import of goods from continental Europe from January 1

The British media have repeatedly noted that this could lead to higher prices for food, medicine and basic necessities, and other economic barriers between the country and the EU will affect freight and commercial activities.

  • UK-EU Trade Agreement Negotiations

  • Reuters

  • © John Thys / Pool

At the moment, one of the main subjects of the dispute between London and Brussels is the access of European fishing vessels to the territorial waters of Great Britain and government subsidies for British industry.

Thus, the EU argues that Britain should provide European countries with the right to fish in their waters and provide a level playing field for competition. 

In turn, London accuses Brussels of putting forward demands that were not put to other countries when concluding a free trade agreement, in particular, Canada.

Britain's chief negotiator David Frost, commenting in the media on the difficult course of the negotiations, noted that the United Kingdom will not become a vassal of the EU and "will not make concessions to the fundamental principle of control over its laws."

“We will not accept conditions that would give them control over our currency or how we organize processes here in the UK, and this should not be a subject of controversy,” the Australian newspaper quoted him as saying.

Frost noted that the EU's position limits the progress that can be made in the negotiations, and recalled that Britain from the outset outlined its interests in these areas, which are fundamental to Britain as an independent state.

There is simply no time left for further negotiations and revision of the trade agreement between London and Brussels, said Kira Godovanyuk, senior researcher at the Center for British Studies at the Institute of Europe, RAS, in an interview with RT.

“This is Johnson's attempt to once again put pressure on his partners and play all-in by threatening to exit without a deal.

The fact is that if during the negotiations on leaving the EU Brussels did make concessions, then it will be more difficult to make such concessions during the negotiations on a comprehensive agreement, ”the political scientist noted.

London refuses to accept the requirements of Brussels for fair competition, as it believes that this will put British companies at a disadvantage, the expert said. 

"Therefore, Britain's withdrawal from the trade union without a deal becomes very likely and everything will be decided in the coming months," the political scientist explained.

The EU is interested in their standards being extended to Britain after the latter left the trade union, primarily because they want to secure their own producers, added Kira Godovanyuk.

“The fact is that after leaving the EU, the UK gets freedom

conclude trade agreements with third countries, primarily the United States.

Negotiations with the US are in parallel with the negotiations with the EU, and this raises very serious conflicts and conflicts of interest

"

- said the expert.

Washington is interested in London being as closely as possible in terms of its technical standards and regulations with the United States in order to reorient the British market for American companies, Godovanyuk explained.

“Serious economic interests are tied here, which Brussels is ready to defend,” the expert said.

Exit without agreements

The UK was supposed to leave the EU on March 29, 2019.

However, the government, then still under the leadership of Theresa May, was never able to approve the draft agreement with the EU in the House of Commons of the British Parliament, where the votes of supporters and opponents of Brexit were divided approximately equally.

After several parliamentarians rejected the draft agreement proposed by May's cabinet, she had to resign.

Boris Johnson called the previous version of the deal with the EU "defeatist", since, in his opinion, it assumed only a formal exit from the European Union: in fact, London had to continue to obey its trade rules, while losing the right to vote in the European Parliament.

  • EU headquarters in Brussels

  • Reuters

  • © Yves Herman

On December 31, 2020, an 11-month transition period will end, after which Britain will exit the EU's single market and customs union.

Brexit in the short term will result in serious economic costs for London, says Kira Godovanyuk.

“Brexit without a trade agreement will have serious consequences for London, because despite Trump's promises of a fantastic trade deal with the United States, of course, London's main and largest trading partner is Brussels.

Trade chains, production, everything is focused on continental Europe.

Business will adapt over time, but it would be highly desirable for both parties to conclude a trade agreement, ”the political scientist noted.

The government of Boris Johnson has a rather difficult internal political situation, and his harsh statements about negotiations with the EU can be regarded as an attempt to play along with his electorate, says Lyudmila Babynina, head of the Center for Political Integration at the Institute of Europe, RAS.

“There is nothing new in his words.

Britain periodically threatens to withdraw without an agreement.

The problem is that it will hit both European and British businesses.

But for London this is a much bigger problem.

All claims that it is profitable for Britain to exit without a deal are untrue.

It will be very difficult for Britain if they switch to trade according to the WTO rules, ”the expert said in an interview with RT.

If there is no trade agreement, there will be duties and restrictions in mutual trade, in the free movement of goods and services, Babynina recalled.

“British companies will lose access to the EU market.

Accordingly, British goods will be more expensive, as they will be subject to a certain duty.

The principle of the country of origin of the goods will be very important.

It will have a bad effect on the EU as well, but in the Union this damage will be distributed among all countries.

And the problems of Britain will be concentrated exclusively in Britain, ”the political scientist concluded.