Strong possibility of no-deal Brexit: UK PM Boris Johnson

UK Prime Minister Boris Johnson said on Friday that there was "a strong possibility" that Britain and European Union (EU) would not be able to strike a trade deal before Britain leaves the bloc at the end of this year. However, he has vowed to do whatever he can to avoid such an eventuality. The trade deal talks between EU and Britain are stuck on issues such as competition rules, fishing rights and economic fair play

Failure to reach a consensus on the issues before Britain's exit may lead to legal and trade complications in the future.

Both sides have set a deadline of Sunday (December 13).

After a meeting with his senior ministers, Johnson said the treaty on the table did not work for Britain.

"We need to be very, very clear there's now a strong possibility, strong possibility that we will have a solution that's much more like an Australian relationship with the EU, than a Canadian relationship with the EU," Johnson said.

Also Read | Brexit deal: EU-Britain to take decision by weekend, says Ursula von der Leyen

Australia does not have comprehensive trade deal with EU. Although Australia's trade with EU is just fraction of that of Britain, Johnson apparently is drawing simile to suggest that a deal was not necessary.

Under such a scenario, Britain would see trade barriers imposed with the EU, its main economic partner, in just three weeks.

Sterling dropped against the U.S. dollar to $1.3262 on the remarks, down from around $1.33. It was last almost 0.9 percent lower on the day at $1.3274.

Johnson spoke as the 27 national EU leaders met in Brussels and the bloc's chief executive, European Commission President Ursula von der Leyen, said bridging the persistent differences in UK trade talks was "difficult".

(With Reuters inputs)