Brexit update: What happened in London?

Brexit | | MIC Customs Solutions |

More talks have taken place concerning Brexit, so where are we up to in terms of a trade agreement?

With some of the rules of lockdown now eased, politicians have again been able to meet in person to discuss the ongoing issue that is Brexit.

Last week, a gathering was hosted in London to carry out the latest round of negotiations between European Union representatives and the UK, with a subsequent presentation delivered by the EU chief negotiator to ambassadors from the 27 member states.

In it, Michel Barnier said there had been resolution of the internal budget and recovery fund debate, but explained neither side had been able to agree on the basic outlines of a trade deal.

However, some analysts are hopeful there will be some progress, pointing out that Mr Barnier had perhaps not been as pessimistic as usual in his delivery.

Although he said he thinks talks need to be wrapped up in October due to the deal still needing to be ratified by December, Mr Barnier did suggest that a "zero tariff, zero quota" agreement would be a prize worth waiting for.

"We hope member states will become more engaged in this process in Brussels and get [discussions] moving forward politically in a helpful way," a UK source commented.

Despite this, the ongoing sticking points in the discussions proved once again to be fishing rights and post-Brexit competition rules, with UK chief negotiator David Frost acknowledging "considerable gaps" remain in these areas.

European fishing fleets want to retain their access to British waters, and both sides want to ensure neither side can undercut the other in terms of subsidies and lower regulatory standards.

Mr Barnier criticized Britain for not taking measures to break the deadlock on these problems, but Mr Frost claimed the EU's offers to help do so did not honor the "fundamental principles which we have repeatedly made clear".

Meanwhile, there was another blow for British prime minister Boris Johnson as Angela Merkel's government in Germany publicly stated the UK needs to have more realism in how it approaches the trade talks.

German ambassador to the EU Michael Clauss said it would be impossible for Britain to keep "full sovereignty and at the same time full access to the EU's internal market".

Yet there was perhaps a silver lining even here, as he added that reaching a deal was "absolutely" possible.

As the two sides prepare for an informal meeting next week and another round of talks in Brussels mid-August, it may be this that Mr Johnson clings to as the Brexit transition period deadline moves ever closer.

What can MIC do for you with regards to Brexit?

Many global companies decided to implement MICs' Customs & Trade Compliance Software Solutions from which many of them are using our solutions in the UK since more than a decade as well. MIC is certified in the UK for the electronic data exchange with the UK customs authority system (CHIEF) since 1999 and is ready for the upcoming new Customs Declaration Service (CDS). With MICs' Customs & Trade Compliance Software Solutions in place you’re prepared and able to mitigate your Brexit business risks.