Brexit Without Trade Deal Remains Strong Possibility

There is more than a 30% chance for a no-trade deal Brexit, according to a recent report by JPMorgan, Reuters reported.

The UK government reportedly sees no prospect for extending the transitional period for BREXIT negotiations, according to recent media reports.

The transition or the implementation period ends on 31 December 2020, however, talks for a new trade agreement between London and the European Union (EU) have recently stalled with a number of disagreements.

The UK’s Prime Minister office on Tuesday reiterated that there will be no extension to the period and expressed optimism about reaching an agreement soon.

“The chance of no-deal is about a third, but with brinkmanship part of the process it may appear higher than that before agreement is reached,” according to JPMorgan.

“It would be a surprise to us if enough progress were made to bring agreeing a Treaty by end October into view.”

“The absence of that progress will generate pressure for interventions from UK and EU leaders; however, at this stage, we see little that suggests any major softening in the EU’s position or unity around it.”