Talks on a possible trade deal are continuing in London this week between David Frost and Michel Barnier, the two sides’ respective chief Brexit negotiators, but fears are growing that there will be no agreement.
That would mean the UK reverting to WTO terms when the current transition period ends on 31 December.
There has been criticism in some Member States that the EU has not done enough to publicise the preparations it has made for a No Deal Brexit.
On Monday, a European Commission spokesman told reporters, “We are not in the same position as we were in 2019 because people and businesses have had the chance to prepare for the UK exit, whether there is a deal or not.”
He added, “We have worked hard with all stakeholders on this and people should be well aware of what they need to do.”
The UK government has come under even stronger attack from business groups who claim insufficient effort has been made to plan for the UK exit at the end of this month.
In an attempt to see off such criticism, it was announced on Monday that a new unit will be on the lookout for potential problems at the UK's border once the Brexit transition period ends.
“Our economies are already facing the very negative consequences of COVID-19. We cannot afford another major disruption caused by a No Deal situation. It is time to act responsibly, for our companies and our citizens. It is time to conclude an agreement” Pierre Gattaz, BusinessEurope President
From 1 January, the Border Operations Centre will use specialists and cutting-edge software to help cope with disruption once the UK leaves the EU's single market and customs union and moves to new trading arrangements.
Even so, a meeting of BusinessEurope’s Council of Presidents, its member federations, has expressed “great concern” about preparations for a no deal.
BusinessEurope President Pierre Gattaz said, “The end of the transition period is around the corner and we don’t know how the EU and the UK relationship will look like. Companies are preparing as much as they can, struggling with uncertainty and lack of visibility on how they will trade as of 1 January 2021.”
“If there is no deal, businesses will be confronted with tariffs in some cases as high as 40 percent, the need to comply with different regulations, double testing, different origin requirements. Trade between the EU and the UK will become more difficult and much more expensive.”
He added, “Our economies are already facing the very negative consequences of COVID-19. We cannot afford another major disruption caused by a No Deal situation. It is time to act responsibly, for our companies and our citizens. It is time to conclude an agreement.”
Elsewhere, the UK Road Haulage Association (RHA) says the UK government “must engage urgently with the haulage industry to avoid border and customs chaos after Brexit.”
RHA chief executive Richard Burnett said that the industry has not had the engagement with ministers it should have had, adding, “We have a different view of what immediate means. To us it means now. If the government supports us we will support them to achieve a successful Brexit.”
“We are not in the same position as we were in 2019 because people and businesses have had the chance to prepare for the UK exit, whether there is a deal or not” European Commission spokesman
Burnett also stressed how the movement of HGVs is fundamental to the productivity and competitiveness of the UK and the EU, saying, “Maintaining efficient movements across the UK/EU borders post Brexit is in everyone’s interest.”
“Why? Because this is the most challenging task the supply chain has ever faced and we have to get it right - first time. Get it wrong and the result will be the permanent imposition of Operation Stack scenarios on the roads to all ferry ports.”
“Right now, businesses do not know what customs will be demanding from importers and exporters. This is by far and away the most important thing that needs to be sorted quickly. Time is running out.”
EU Member States recently refused a Commission request for an additional €50 million to cover “serious financial burden inflicted” on Member States as a consequence of a No Deal Brexit. This was because they said no agreement has yet been reached on the MMF, the long-term budget of the EU.
The additional money would have been channelled through the EU Solidarity Fund, amended to tackle the negative consequences of a no-deal Brexit.
Commenting on the current state of the talks, French Greens member Gwendoline Delbos-Corfield told this website, “Time is running out for the UK government. We echo our concern about the implications of a No Deal arrangement for the rights of citizens on both sides of the channel.”
“I remain hopeful that sufficient progress can be made. We will keep fighting for a fair, mutually beneficial future relationship with the UK.”