New: the European Parliament's announcement that it will not ratify any treaty before the end of December unless the deal is concluded by midnight on Sunday comes amid signals that, despite progress, a deal won't be concluded until early next week.

2/ This is because there are still some formidable hurdles in the way of closure on the level playing field issue, and they haven't even got into fisheries in a big way yet. And both sides say things there are "extremely difficult".
3/ Yesterday there were some signals that a deal could be done by the weekend, but the mood seems to have dipped somewhat.
4/ The EP is saying it wants a "provisional" text from the European Commission "as soon as possible" - not clear if that means even before the midnight deadline
5/ If a deal is not concluded by Sunday night then we are in uncharted waters
6/ Member states will say the treaty should therefore be applied provisionally from January 1 and ratified later. Under the Lisbon Treaty the Council has that prerogative. However, the Commission wants the treaty to be ratified by end Dec if at all possible. EP dead against PA
7/ Provisional application still requires the consent of the UK. That's another question altogether. If the UK decides it does not accept Provisional Application then we're into a short No Deal period
8/ Even if Provisional Application is required, it can't just be done in a heartbeat. There are still several procedures to get through.
9/ So there could still be a No Deal period from January 1. Officials say that the No Deal contingency plans which the European Commission have published for aviation, haulage, trains and fisheries would kick in in that scenario

More from Tony Connelly

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End of week 2 thread on post Brexit food trade

There is continued growing unease. The main picture remains one of depressed/tentative trade (c50% down y-o-y) and some high profile logistics business have taken the rational step to stop and regroup.

The big worry here is that ‘not-trading’becomes a habit. We can’t/won’t carry on at half the volumes of before, but as volumes claw back we may only reach something like 80% of previous volumes and that is a disaster for a food industry already battered by a recession.

Lots of focus has been on the idea of EU businesses stopping serving the UK. Worries about how we feed ourselves has trumped worry about our exporters at every stage. Even though it is the collapse of our export businesses that is (and has always been) the greater threat.

To reassure the mainland British shopper that feels like less of a risk. UK is a large market of wealthy consumers, and UK gov has shown it will do anything (however unfair) to ensure stuff gets in - even letting supermarkets have access to the fast track lane to Dover.


I am not as close to this but it feels like shortage on the shelves is more of a genuine immediate threat for the island of Ireland. The types of innovative solutions we have discussed this week can help but will they come in quick enough?

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