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- Brexit: A deal can still be done and provisionally applied - ABN Amro
Brexit: A deal can still be done and provisionally applied - ABN Amro
Brexit: A deal can still be done and provisionally applied - ABN Amro
FXStreet notes that with a little over two weeks left until the UK leaves the EU’s single market and customs union, negotiations on a post-Brexit trade deal are continuing, even at this eleventh hour. The risk of a no-deal scenario is now very high but even if a deal is not struck in time, economists at ABN Amro expect one to be concluded in the course of 2021.
“Parliamentary timetables and the need for proper scrutiny make it now virtually impossible for a deal to be formally ratified before the end of the transition period. Instead, if a deal is struck, it will likely be provisionally applied by the European Council (i.e. the EU member states) and the UK while it awaits formal approval by the UK and European parliaments (and potentially, EU national and regional parliaments).”
“There are presently three main sticking points that need to be overcome for a deal to be agreed: 1. Fish quotas, 2. ‘Level playing field’ provisions and 3. Governance of the deal. Of these, the most contentious is the level playing field.”
“It remains to be seen if a deal can be agreed in time even to apply provisionally. However, there are signs of movement on the EU side.”
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