Both Euro and Sterling are under pressure today as EU and UK lay down the tone for negotiations with tough words. UK Prime Minister Boris Johnson said in London that the “beneficial magic” of free trade is “fading”. “Free trade is being choked, and that is no fault of the people, that is no fault of individual consumers.” It’s “he politicians who are failing to lead, the mercantilists are everywhere, the protectionists are gaining ground.” He added, “from Brussels to China to Washington, tariffs are being waved around.”
On trade negotiations with EU, Johnson said UK should not be obliged to accept EU rules in key areas. Meanwhile, UK is not going to insist that the EU follows all its rules. He added that UK does not intend to lower its own standards after Brexit. In major other ares, UK is ahead of EU in standards. And, if EU has worries about state aid, it should focus on France and Germany instead.
Separately, EU chief Brexit negotiator Michel Barnier said the EU will be “very demanding” for a level playing field with the UK during the negotiations. It’s the key to open the EU markets for zero tariffs and zero quotas. EU issued draft guidelines for negotiations covering economic partnership, the security partnership, and the institutional governance framework. Negotiations can begin immediately once the mandate is approved by the European Council at a special summit on February 20.
