IMF: UK must extend Brexit trade deal deadline during coronavirus
The UK must move to extend its Brexit trade deal deadline while the global economy faces coronavirus uncertainty, according to the head of the International Monetary Fund (IMF).
UK chief negotiator David Frost and his EU counterpart Michel Barnier confirmed yesterday that trade talks will re-commence next week, without any extension to the 31 December deadline.
The pair, and their teams, will hold three week-long negotiation rounds via video conference over the next six weeks
IMF chair Kristalina Georgieva urged the government to extend the deadline to reduce uncertainty.
Speaking to the BBC today, she said: “I really hope that all policymakers everywhere would be thinking about [reducing uncertainty]. It is tough as it is. Let’s not make it any tougher.
“My advice would be to seek ways in which this element of uncertainty is reduced in the interests of everybody, of the UK, of the EU, the whole world.”
The UK is currently in a transition period, where it is still operating by EU rules and regulations.
If no deal is struck by 31 December then new taxes and barriers to trade will immediately be implemented on World Trade Organisation (WTO) terms.
Georgieva did have praise for the UK government’s measures to help the economy through the coronavirus crisis.
Its key packages are a £330bn loan scheme for small and medium sized businesses, tax cuts in the vicinity of £100bn and £20bn of grants to hospitality, leisure and retail companies.
“That very strong package of measures is helping the UK, but given the UK’s sizeable role in the world economy, it’s actually helping everyone,” Georgieva said.