Boris Johnson has suggested the prospect of a failing to reach a trade deal before the end the Brexit transition period would be a “very good option” for the UK.
The prime minister’s remarks come after the German chancellor, Angela Merkel, warned the EU must prepare for the possible failure of the Brexit trade talks, saying progress in the negotiations had been “to put it mildly, minimal”.
Attempting to strike a more upbeat tone, Mr Johnson told LBC radio: “We now need to make sure we get a good deal. I think actually – I’ve had some very good conversations – with friends and colleagues around the EU. I’m a bit more optimistic than Michel [Barnier] is there.
He added: “I just think there’s a good agreement to be reached, but obviously if we can’t then we will have the very good option also of an Australian-style arrangement.”
However, Australia does not have a free trade agreement with the EU, and the UK government has consistently used the term “Australian-style arrangement” as a euphemism for leaving the bloc without a deal at the end of the 11-month transition period.
Earlier this year, Phil Hogan, the European Commissioner for trade, outlined that the EU does “not have an agreement with Australia” and said of the UK seeking an “Australian-style” deal with the bloc: “I think that’s code for no deal.”
Mr Johnson’s comments also follow the latest round of talks over a future trading agreement, with the UK’s chief negotiator, David Frost, warning “significant differences” remain between London and Brussels.
