Britain and Europe agreed to continue trade talks

On Monday, the pound jumped 130 points to open at 1.3355 against the dollar. Sterling continued to rally on the day, early European trade, sterling against the DOLLAR stood at 1.34, up 1.39% on the day.

Michel Barnier, the EU’s chief Brexit negotiator, briefed eu ambassadors on the status of the brexit negotiations at 8.30am European Time (3.30pm Beijing time) on Monday. The European Union’s chief Brexit negotiator Michel Barnier says there has been limited progress in talks with Britain on a trade enforcement mechanism, according to a senior EU diplomat.

British Prime Minister Boris Johnson and European Commission President Martin von der Leyen have agreed to continue brexit trade talks, the Guardian reported Wednesday. Previously, the two sides set the 13th deadline for negotiations.

British and EU officials will remain in Brussels and will try to reach an agreement in the coming days. Officials from both sides have been holding talks here for the past week. People close to both sides said a mid-week deal was not out of the question.

The UK and Eu issued a joint statement saying:

“We made a useful phone call. We discussed the main outstanding issues. Our negotiating team has been working around the clock for the last few days. Despite the exhaustion that has followed nearly a year of negotiations, and despite repeated missed deadlines, we believe that at this stage it is our duty to redouble our efforts. So we have instructed our negotiators to continue to negotiate and see if an agreement can be reached at this late stage.”

On the day of the European commission’s President, der leyen video speeches, said she and Johnson call is constructive and meaningful, together they discussed the several major issues has not been resolved, although both sides repeatedly missed deadline established negotiations, but the two sides agree that to give more time to negotiate is the responsible thing. Negotiations between the EU and UK will continue in Brussels.

Michel stressed that the end of the negotiations should not be a loss of calm, exaggerate, and the UK and the EU are friends, partners and Allies, the interdependence and interconnectionbetween the two is complex. She believes it is in the EU’s interest to have a close and friendly relationship with Britain.

Michel also reiterated that the EU does not want a deal at any cost, that what it sees as a good deal must respect the principle of fair competition and that the eu’s commitment to an open economy must be based on justice and reciprocity.

Both sides are preparing for a no-deal brexit

Although the UK and THE EU have agreed to continue negotiations, there is still a lot of uncertainty about whether an agreement can be reached. The possibility of a “no deal” Brexit is still very high, and both sides are prepared for this.

On December 12 local time, the British government released the details of its plan to leave the European Union without a deal.

Britain’s Ministry of Defence says four Royal Navy ships equipped with artillery and machine guns will be sent to patrol the English Channel and The Irish Sea to combat illegal fishing in the absence of a trade deal between Britain and Europe.

According to the Guardian, British navy sources said that from January 1 next year, the British Navy patrol ships will start patrolling, in addition to the Navy has the power to stop, inspect and even seize eu fishing vessels operating in British economic waters.

In addition, the UK government is understood to have spent 4 billion pounds on measures to contain the chaos caused by a no-deal Brexit. The UK government also employs more than 900 border officers and is expected to set up more than 20 hotlines to advise businesses. Cabinet ministers are understood to be drawing up an £8bn – £10bn rescue package to support the industries hardest hit by a no-deal Brexit.

On the EU side, the EU will act as an intermediary for every fishing vessel that wants to start fishing in British economic waters to apply to the UK. In return, the EU will accept applications from British fishing vessels for fishing in eu economic waters. However, the new rules are only temporary and the EU says it looks forward to a lasting agreement in the future.

To avoid a shortage of goods in the UK, the EU has also proposed a transition plan under which heavy lorries and goods vehicles from both sides would not need to provide special permits to enter or leave the other country for the next six months. “Specific air services” between the UK and Europe will also continue for up to six months, but only if the UK can provide a reciprocal policy.