Until recently there were tensions in the negotiations between the European Union and the United Kingdom. The tensions arose when Boris Johnson decided to launch his Internal Market Bill. The bill goes against the Brexit Agreement that is the basis for the current negotiations.
Another Month of Negotiations
Despite these tensions, there has been some progress. So much progress that Boris Johnson and Ursula von der Leyen have approved a further month of negotiations.
The Guardian reports:
“They agreed on the importance of finding an agreement, if at all possible, as a strong basis for a strategic EU-UK relationship in future,” the statement said. “They endorsed the assessment of both chief negotiators that progress had been made in recent weeks but that significant gaps remained, notably but not only in the areas of fisheries, the level playing field and governance. They instructed their chief negotiators to work intensively in order to try to bridge those gaps.”
Read the full article here.
Johnson Keeps the Pressure On
While on the one hand, Johnsons is agreeing to another month of negotiating, on the other hand he is still increasing the pressure to come to a deal. He wants a deal fast and has chosen the start of a European Union Summit as an end date.
The BBC reports:
Boris Johnson has been clear with the EU that the time left to get a post-Brexit trade deal in place is in "short supply", Downing Street says.
The prime minister has set a deadline of this Thursday, after which he has said the UK is ready to "walk away".
No 10 said the time limit was still in place and the government was trying to "bridge" disagreements over fishing rights and state aid for businesses.
Meanwhile, the UK's negotiating team is in Brussels for further talks.
Read the full article here.
Fish Makes Both Parties Drift Apart
Fishing has been one of the biggest stumbling blocks of the negotiation. Many in the United Kingdom see Brexit as a chance to reclaim their fishing grounds for the British fishing fleet, limiting access to European ships. The European Union is adamant that European fishing vessels keep their access to British waters for fishing.
ForeignPolicy.com reports:
“This stand-off has the potential to derail the entire talks,” concluded a report published this June by The UK in a Changing Europe, a British think tank. “Absurd though it may seem, as the formal Brexit process reaches its endgame, fisheries might yet be the issue that determines whether the negotiations succeed or fail.”“Absurd though it may seem, as the formal Brexit process reaches its endgame, fisheries might yet be the issue that determines whether the negotiations succeed or fail.”
The CFP was set up in the 1970s to help sustainably manage stocks of the dozens of species that move between the waters of European nations. Overall catch limits are set every year by EU ministers. But each country’s share of individual species was fixed four decades ago based on historical fishing patterns.
This rigid allowance has increasingly disadvantaged the United Kingdom: European trawlers land around 700,000 metric tons of fish from British waters annually, compared with under 100,000 metric tons in the other direction. Meanwhile, the British fishing fleet of nearly 6,000 vessels has had trouble adapting to changing fish stocks and competing with large fishing companies that monopolize lucrative fishing grounds.
Read more on the fishing issue in the full article here.
Less Than 1 in 5 British Companies are Prepared for Brexit
Supply Chain Movement reports:
Less than one in five British companies (18%) are currently prepared for a no-deal Brexit. Meanwhile, more than half of Dutch and Flemish logistics service providers are concerned about the UK leaving the EU; 48% expect the Brexit to lead to changes within the supply chain. These findings come from research commissioned by Descartes among more than 500 UK supply chain managers and 40 Dutch and Flemish logistics service providers.
A total of 70% of the logistics service providers surveyed are preparing for the Brexit by investigating the impact of import/export customs declarations on the supply chain. Also high on the to-do list of Dutch and Flemish logistics service providers is to establish agreements on delivery and prices after the Brexit (43%), implement software for import and export declarations (35%) and deal with likely delays at the borders (40%). According to one in five Dutch, Flemish and British companies, they are already feeling the effects of the Brexit.
Be Prepared Whatever the Outcome
Companies in both the United Kingdom and the European Union should get themselves ready for a Brexit on December 31 2020. The fact that a trade deal has not yet been agreed upon, doesn’t change the fact that there will be a border between the United Kingdom and the European Union. Companies trading between the UK and the EU will need a lot of additional customs documents and permits.
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If you have any questions about Brexit preparations, please contact one of our specialists. Customs Support is ready for Brexit and our people are happy to help you prepare as well.
