{"id":162657,"date":"2019-12-31T08:30:33","date_gmt":"2019-12-31T13:30:33","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=162657"},"modified":"2019-12-31T06:30:33","modified_gmt":"2019-12-31T11:30:33","slug":"uk-pm-launches-trade-talk-taskforce-for-eu-deal","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/uk-pm-launches-trade-talk-taskforce-for-eu-deal\/","title":{"rendered":"UK PM Launches Trade Talk Taskforce For EU Deal"},"content":{"rendered":"
December 31, 2019<\/div>
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By Orbex<\/a> \u2013 Ahead of the UK\u2019s official departure date from the EU on January 31st,<\/sup>\u00a02010, the first rumblings about the deadline for the transitional phase are already starting to emerge.<\/strong>\u00a0The UK is due to enter into talks with the EU. These are aimed at agreeing on terms of future trade between the two economies.<\/p>\n

This period, during which time the UK will remain in the single market, currently has a deadline of December 31st,<\/sup>\u00a02020.\u00a0The PM has been adamant in his affirmation that a deal can be done within that time.<\/strong>\u00a0Although, he has also added that the deadline will be honored, regardless of whether a deal is done. Critics, however, argue that the current timeframe is unrealistic and accuse of Johnson of setting trade talks up for failure.<\/p>\n

Taskforce Europe<\/strong><\/h2>\n

Johnson announced this week that he is launching a special task-force aimed at delivering a deal ahead of the deadline.\u00a0Johnson\u2019s new team, called \u201cTaskforce Europe\u201d is slated to begin operating by January 31st<\/sup>.<\/strong>\u00a0They will take over from the former Department for Exiting the European Union (DExEU). Taskforce Europe will be the vehicle through which Johnson negotiates with Europe regarding the terms of a free trade agreement. It will be led by the PM and David Frost, his Europe adviser.<\/p>\n

EC President Calling For Transition Phase Extension<\/strong><\/h2>\n

Despite Johnson\u2019s insistence that the current timeframe offers ample room for agreeing to a deal, the EU does not seem to share the same confidence.\u00a0Ursula von der Leyen, the new European Commission president<\/strong>\u00a0told the French newspaper Les Echos\u00a0\u201cI am very concerned about how little time we have.<\/strong>\u201d<\/p>\n

She further commented:<\/p>\n

\u201cIt seems to me that, on both sides, we should seriously consider whether the negotiations are feasible in such a short time.\u201d<\/p><\/blockquote>\n

The new EC president went on to say that pending a review of negotiations in summer 2020, the deadline might need to be extended.\u00a0Von der Leyen said:<\/strong><\/p>

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\u201cit would be reasonable to evaluate the situation mid-year and then, if necessary, agree on extending the transition period.\u201d<\/strong><\/p><\/blockquote>\n

Johnson\u2019s Defensive Over Trade Talks Deadline<\/strong><\/h2>\n

While the EU might push for such an adjustment, the political backdrop in the UK poses a challenge. As part of the Withdrawal Agreement Bill, Johnson included a clause to prevent parliament from extending the deadline.<\/strong>\u00a0As such, the deadline can now only be extended if Johnson passes a motion to revoke that clause.<\/p>\n

However,\u00a0it seems unlikely that such a motion would pass. This is\u00a0given the concern shared among many Brexiteer MP\u2019s that a Brexit deal would result in the UK entering an indefinite limbo with the EU. As a result of this, while the UK has avoided the immediate economic risks of Brexit, later into next year, we could see fresh risks arise if trade negotiations look to be struggling.<\/p>\n

Technical Perspective<\/strong><\/h2>\n

\"\"<\/a><\/p>\n

The post-election rally in GBPUSD<\/a>\u00a0was capped by a test of the 1.3379 level, following the break of the bearish long-term trend line from 2015 highs. While price was knocked lower following this test, 1.2967 offered support. Price is once again moving back above the trend line. While above the 1.2697 level, a further test of the 1.3379 level is likely, in line with the bullish channel which has framed the recovery in GBP. For now, the focus remains on further upside.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex \u2013 Ahead of the UK\u2019s official departure date from the EU on January 31st,\u00a02010, the first rumblings about the deadline for the transitional phase are already starting to emerge.\u00a0The UK is due to enter into talks with the EU. These are aimed at agreeing on terms of future trade between the two economies. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-162657","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=162657"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162657\/revisions"}],"predecessor-version":[{"id":162666,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/162657\/revisions\/162666"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=162657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=162657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=162657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}