Published: Fri, August 09, 2019
Markets | By Erika Turner

Risk of no-deal Brexit is growing - Donohoe

Risk of no-deal Brexit is growing - Donohoe

A leaked report last week suggested talks over a free trade deal with the USA were "in jeopardy".

He insisted that there is scope to offer clarifications on the deal and to make changes to the future relationship.

With both the foreign secretary and worldwide trade secretary Liz Truss both in the United States to discuss trade with President Trump's top team within two weeks of the formation of the new Johnson Cabinet, it is clear that is no longer the working culture of 10 Downing Street.

"We talked about all the things that we want to do together in the post-Brexit vision for the United Kingdom, whether it's getting a free trade deal done and there's obviously going to be a lot of work to make that happen".

Speaking to Sky in Washington today about the meeting the Foreign Secretary said: 'He expressed his high regard for Boris Johnson as a Prime Minister and we talked about all the things that we want to do together in the post-Brexit vision for the UK.

"There are many ways by which a no deal can be avoided".

"So, there are a number of ways that a no-deal can be avoided on the 31st of October".

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He also admitted that the likelihood of a no-deal Brexit increased as the clock ticked towards Halloween but added an agreement was possible.

Mr. Johnson has said his government is bracing the country for the possibility of a no-deal Brexit amid dire warnings of backlogged customs and border checks, new tariffs on trade with Europe and the loss of clout that comes with being part of a 28-nation bloc.

On a visit to Belfast, Mr Varadkar said talks on a future trading relationship would still not begin until matters in the current withdrawal deal - such as citizens' rights, the financial settlement and the Irish Border - are dealt with.

"We will throw ourselves into the negotiations with the greatest energy and the spirit of friendship and we hope the European Union will rethink its current refusal to make any changes to the Withdrawal Agreement.

The Taoiseach and those of us who have the privilege of being in government will need to make a call as we approach October 31st regarding what we believe is the most likely scenario, and what is the appropriate economic strategy for our country, and political response to such a scenario unfolding".

"The fact is the Withdrawal Agreement has been rejected by Parliament three times and will not pass in its current form so if the European Union wants a deal, it needs to change its stance". But if they refuse to move. then we'll leave without a deal.

"It is simply saying "No, we don't want to talk".

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