UK mulls looser trade deal with EU, akin to EU-Australia trade ties

Days after Brexit, British Prime Minister Boris Johnson would consider setting a looser trade agreement with the European Union, a trade deal arrangement akin to that of the EU and Australia trade ties.

This possibility is an indicator that the United Kingdom is unlikely to follow the EU’s rules to come up with a trade deal. This development is confirmed by a source in the British government on Saturday.

“There are only two likely outcomes in negotiation – a free trade deal like Canada or a looser agreement like Australia – and we are happy to pursue both,” the source said.

After almost 50 years or five decades of membership in the European bloc, the British government finally leaves the bloc. Prime Minister Johnson is set to give a speech on trade on Monday.

Prior to the eventual Brexit, Johnson said he would prefer to have a Canada-style trade deal with the EU before the eleven months transition period expires at the end of 2020. However, Johnson also said Britain will not commit to continuing abiding by the rules set by the EU after the transition period.