Germany's Angela Merkel says there is 'still a chance' for a Brexit deal as talks continue

German Chancellor Angela Merkel on December 9 said that a Brexit deal on future EU-UK trade is only possible if it prevents unfair competition. Britain is set to leave the EU single market at the end of the year with or without a trade agreement. Failure to reach a free trade agreement with the EU means bilateral trade will depend on World Trade Organization (WTO) rules in 2021.

While speaking at Bundestag, Merkel said that that there is “still a chance of an agreement”. However, she also added that Germany would accept the no-deal outcome of the UK does not give ground. “I don’t think we will know tomorrow whether this will succeed or not — at least I can’t promise that — but we are continuing to work,” Merkel said in reference to dinner between UK PM Boris Johnson and European Commission President Ursula von der Leyen on Wednesday evening, which is aimed at providing political impetus to the talks.

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Further, the German Chancellor also stressed that the European Union is ready to accept a no-deal outcome. She said that if there are conditions on the British side that the European leaders cannot accept, then the EU is ready to go down the path that is without an exit agreement. She went on to stress that fair competing between the UK and EU companies must be guaranteed through a so-called “level playing field”. 

“We are starting now from a similar, harmonized legal system, but over the years these legal systems will develop apart in the fields of environmental policy, labour policy or health policy ... And we can't just say: We don't talk about that. Instead, we need a level playing field not only for today but also for tomorrow and the time ahead, and for that, we need an agreement on how either side can react if the other changes the legal system," she said.

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Brexit deadlock

Britain exited the European Union on January 31, however, UK is yet to reach an agreement for post-Brexit trade with respect to fisheries activities, freedom of competition, handling of future relations, and police and judicial cooperation on criminal matters. Irish foreign minister Simon Coveney told RTE news that the talks for an agreement had hit a downbeat, both EU and UK had ramped up efforts to make progress in the negotiations as time is running out.

As per BBC reports, Extensive negotiations are needed in the field of governance and fisheries and the outcome is still uncertain. In earlier negotiations in London, none of the conditions of the agreement was met as European Commission informed in a statement. British officials dismissed negotiations as reaching "difficult points".

Meanwhile, France’s demands over fishing rights in British seas is being objected to by the UK, that aims at a Canada style free trade post-Brexit. In case of an absence of an agreement by 2020 year-end, UK stands compliant to World Trade Organisation terms that are likely to surge business tariffs once the transition period concluded. Tariffs will hit the UK’s deal governing almost $1 trillion of annual trade.

(With inputs from AP) 

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