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Brexit: Pound falls on fears of a no-deal

EU-UK trade talks have resumed in an attempt to complete a post-Brexit trade deal.

There are growing fears of a ‘no-deal’ Brexit by the end of the year, however, the UK government has insisted that there is “still time to reach an agreement”.

Michel Barnier, the EU’s chief Brexit negotiator, said this morning: “EU-UK negotiations have entered the endgame, time is running out quickly. The EU is ready to go the extra mile to agree on a fair, sustainable and balanced deal for citizens in the EU and UK. It is for the UK to chose between such a positive outcome or a no deal outcome.”

Agreements are still needed to be reached over fishing and business competition rules.

If a deal is not agreed upon by the time the UK’s transition period is over, the UK and EU will introduce tariffs and border checks on goods.

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If there is a no-deal Brexit reached, financial markets would be impacted and supply chains hit. On Monday, the pound fell 1% to two-week lows against the dollar to $1.328.

Boris Johnson will be meeting with European Commission President Ursula von der Leyen today over the telephone to discuss the likelihood of a trade deal being reached.

“EU-UK negotiations have entered the endgame, time is running out quickly,” commented an EU diplomat.

“Despite intensive negotiations until late last night, the gaps on level playing field, governance and fisheries are still not bridged.

“The outcome is still uncertain, it can still go both ways. The EU is ready to go the extra mile to agree on a fair, sustainable and balanced deal for citizens in the EU and UK. It is for the UK to choose between such a positive outcome or a no-deal outcome.”

Michael Gove is meeting with European Commission vice-president Maros Sefcovic on Monday.

A UK government spokesman said they would “discuss issues related to their work as co-chairs of the Withdrawal Agreement Joint Committee”.

“The Withdrawal Agreement Joint Committee oversees UK and EU implementation, application and interpretation of the Withdrawal Agreement, including the Northern Ireland Protocol. The work of the Joint Committee is separate from the ongoing free trade agreement negotiations.”

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