British Prime Minister Boris Johnson and European Union (EU) leaders will meet again Monday to negotiate the future trade relationship between Brussels and London. They will also continue the talks weekly until the end of July. Negotiations are currently stalled and time is running out.
The fourth round of negotiations started on Monday, but no progress was made here either.
The British have been in the so-called transition period since January 31, the moment they left the EU. The United Kingdom (UK) is officially no longer part of the EU, but will still have to comply with European laws and regulations until the end of 2020. Negotiations are now underway on what the relationship will look like from 2021.
The deadline for a trade deal is October 31, but the British may also decide to extend the transition period (and thus the negotiation period). The EU has already announced its openness to this, but Johnson has said time and again that he wants Brexit settled by 2021. If London wants to renew anyway, they have to let them know before 1 July.
If Johnson does not request an extension and as long as the conversations remain stuck, the chances of a hard Brexit become more real.
The major pain point of the deadlock is the free trade agreement. The EU would like to see the UK continue to adhere to European standards in certain areas, such as labor standards and taxation, in order to maintain a “level playing field”. The UK does not want to commit to this.
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