EU’s unofficial deadline for Brexit deal arrives
The EU’s unofficial deadline for talks with the UK to reach a trade deal is today, though it has been extended until November 19.
The deadline comes after a tense week for Prime Minister Boris Johnson in which two senior aides quit and two cabinet-level ministers urged him to strike a deal, including by making concessions to Brussels. Despite this, Johnson remains firm and a no-deal scenario seems increasingly likely. EU representatives have also expressed pessimism over the likelihood that London and Brussels will reach a final agreement, despite some progress on peripheral issues in the past weeks.
Expect widespread economic fallout in the event of a no-deal Brexit. The general consensus among economists is that a no-deal Brexit would significantly harm the UK economy as 46% of British exports and 53% of imports come from the EU. Without a trade deal, the UK will fall under the EU Common External Tariff, which will disrupt supply chains and cause delays across all economic sectors. Additional concerns have been raised about a shortage of medicine, prompting some companies to begin stockpiling. While some time remains, the EU and the Johnson cabinet have begun to prepare for the effects of a no-deal Brexit.
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