Britain-EU Likely to Finalize a Goods-only Trade Deal Before End of Transition Period: Reuters Poll

According to a recent Reuters poll, over two thirds of economists feel that the transition period for negotiation of a trade agreement between Britain and the EU will not get extended beyond the end of the year, and could result in the partial finalising of a goods-only agreement by December 31. Both sides appear to be taking hard stands head of the next round of negotiations which are scheduled for March and, with just a few months to go, markets are not optimistic they will be able to reach a comprehensive trade deal within the deadline.

The British Prime Minister and government have repeatedly insisted on enforcing a hard deadline for the end of the transition period post-Brexit on December 31, 2020. The EU also appears just as unwilling to consider giving Britain more time for negotiations, which good further drag on the Brexit process.

Over 90% of economists feel optimistic about a free trade deal between the UK and the EU in the future. The next likely scenario would be a trade relationship between the two regions based on WTO rules, while the least likely scenario has Britain remaining as a member of the European Economic Area.

The possibility of a no-deal Brexit scenario has increased from 20% to 25% in the latest polls. Economists also indicated less surety about the possibility of any deal being finalized in such a short span of time to be applicable to the trade of both goods as well as services.