Brexit: relations are strained between the EU and the United Kingdom

The President of the European Commission, Ursula von der Leyen, and the British Prime Minister, Boris Johnson, in Brussels, December 9, 2020. REUTERS - POOL

Text by: RFI Follow

7 min

European Commission President Ursula von der Leyen told EU27 leaders on Friday that hopes of an agreement with London on the future trade relationship were "low".

The words of the head of the European executive echo those of Boris Johnson who declared Thursday that there was a "strong possibility" of failure.

A consensus that throws a cold on the negotiations. 

Publicity

Read more

Negotiations continue until Sunday in a tense atmosphere.

The prospect of a "no deal", an exit without agreement, is looming on the horizon.

Not only are Boris Johnson and Ursula von der Leyen showing their pessimism, but they are beginning to prepare their public opinions.

The British Prime Minister declares that a "no deal" will be " 

formidable 

" for the United Kingdom.

We can do exactly what we want from January 1, 

" he adds while claiming to still hope for a big change from the European Union.

For him, the proposals of the 27, so far, do not respect British sovereignty.

An assertion contested by Ursula von der Leyen.

Europeans want to ensure that their social, environmental and fiscal standards are respected to avoid any wild competition.

 For us, it is a question of adapting the conditions of access to our market according to their own decisions. 

"

To read also: Brexit: the EU issues “emergency measures” with a view to a lack of agreement

The British " 

remain sovereign and free to decide what they want to do

 ",

answers the President of the European Commission.

Germany, which holds the rotating presidency of the European Union, nevertheless considers that an agreement remains " 

possible 

".   

♦ France and United Kingdom, important commercial partners

London considers "improbable" an extension of discussions between the United Kingdom and the European Union beyond the deadline of Sunday if Brussels does not show more flexibility.

For its part, France says it is pessimistic about the possibility of a Brexit with an agreement.

The country is the gateway to the United Kingdom and 80% of road traffic passes through it.

Likewise, 150,000 French companies trade with the United Kingdom, according to French Customs.

Both are important trading partners. 

France exports, in value, more to the United Kingdom than it imports.

Its exports across the Channel amount to more than 33 billion and a half euros.

They are driven by the dynamism of British demand and by the storage effect, in anticipation of a hard Brexit. 

Also listen: Brexit: concerns of English and European companies in the face of uncertainty

The United Kingdom is thus the first bilateral surplus in France, ahead of Singapore - with which London has just signed a

free trade agreement

of 22 billion dollars - and Hong Kong. 

On the import side, the French bought 21 billion euros in goods and services from the British.

They are the fifth largest supplier to the United Kingdom, behind Germany, China and the United States.

Trade in goods is the same as for imports.

These are primarily the products of aeronautical and space construction, and those of automobile construction. 

France is still the leading supplier of wine to the United Kingdom, but also of bakery and pastry products.

It is also the second largest supplier of dairy products behind Ireland. 

Trade in services, which is very diversified, concerns transport, business services, travel for French exports, and in finance, business services as well and telecommunications for imports.

Tourism is another axis of exchange.

13 million Britons traveled to France in 2018. And, taking advantage of the decline in the pound sterling since Brexit, 3.5 million French people visited Britain.

In addition, the United Kingdom is the third largest foreign investor in France and the second country where French companies are located abroad.

This represents 400,000 jobs. 

3,800 subsidiary companies of French groups are located there.

This represents 400,000 jobs and more than one hundred billion euros.

To a lesser extent, 1,200 British subsidiaries are present in France.

They represent 88,000 jobs. 

France is the eighth largest foreign investor across the Channel. 

♦ Report: In Calais, customs say they are ready for a hard Brexit 

Today, there are no systematic customs checks between France and the United Kingdom for all vehicles crossing the Channel.

The situation will change if no trade deal for Brexit is reached.

The French authorities have set up a computer system for declaring goods to be completed online.

What is called the smart border should facilitate flows.

RFI went to Calais to check if everything is ready. 

The structures exist and are capable of absorbing the flows, and I have no doubt that the intelligent border will allow precisely these flows to be absorbed and to preserve the fluidity [...] Depending on the number of controls that will have to do that will actually generate good work.

If we do not have enough hands, it could generate waiting.

Report to the customs service in Calais, on the border between France and the United Kingdom

Alice Rouja

Newsletter

Receive all international news directly in your mailbox

I subscribe

Follow all the international news by downloading the RFI application

google-play-badge_FR

  • European Union

  • United Kingdom

  • Brexit

On the same subject

Brexit: EU issues "emergency measures" in prospect of no deal

European accents

Brexit: concerns of English and European companies in the face of uncertainty

Brexit: London releases additional funds for the Northern Irish economy