Johnson prepared to walk away from EU trade talks

British Prime Minister Boris Johnson will tell the European Union he’s prepared to walk away from trade talks rather than compromise on what he regards as a core principle of Brexit, and the feeling has grown on both sides that a breakthrough will prove impossible when negotiations resume in London this week.

The prime minister will on Monday set the Oct. 15 European Council meeting as the deadline for a deal. And he’ll say the U. K. is prepared to end the Brexit transition period without one, if necessary, at year’s end — a scenario he’ll describe as a “good outcome,” h i s o f f i c e s a i d i n a n emailed statement.

“There is still an agreement to be had,” Mr. Johnson will say, pledging that his government will work hard through September and urging the bloc to “rethink” its positions. “But we cannot and will not compromise on the fundamentals of what it means to be an independent country to get it.”

A European diplomat, who spoke on the condition of anonymity according to policy, said informal consultations ahead of this week’s talks yielded no shift in positions. A second diplomat said the view in Brussels is that there’s a fight between Brexit realists and Brexit ideologues in the British government, and it’s uncertain which side will prevail.

Meanwhile, a spokesperson confirmed that the British government is “considering fall- back options” in case it cannot resolve “outstanding issues” in the Brexit withdrawal a g r e e m e n t r e l a t e d t o Northern Ireland.

The Financial Times reported that a planned internal market bill to ensure smooth trade between the four U. K. nations ( England, Scotland, Northern Ireland and Wales) will override key parts of the withdrawal agreement on state aid and Northern Ireland customs — a move people familiar with the plans told the newspaper will undermine prospects of a trade deal.

The U. K. will revert to trading with its biggest market on terms set by the World Trade Organization if there’s no agreement in place by Dec. 31. That means the return of certain tariffs and quotas, as well as extra paperwork for businesses. Though the British government describes that as an “Australiastyle” agreement, it’s an outcome feared by British businesses who warn of severe disruptions to vital just- in- time supply chains.

On Monday, Mr. Johnson will say that, in the absence of a deal, the U. K. will be “ready to find sensible accommodations on practical issues,” including aviation, haulage and scientific cooperation, according to his office.

The two sides have been at an impasse for months over state aid and fisheries. The EU is seeking to keep the access its fisherman currently have to U. K. waters to protect jobs and coastal communities, while Britain wants reduced access for EU boats and to make it conditional on regular negotiations.

On state aid, or “levelplayingfield regulations,” Mr. Johnson’s government wants the freedom to chart its own course, while the EU is demanding to know what the British government plans to ensure fair competition.

Negotiators have scheduled eight hours of talks on both issues this week, according to an agenda published Friday.