“There must be an agreement with our European friends before the European Council on 15 October… If we do not reach an agreement between now and then, I do not see that there will be a free trade agreement between us, and we should accept it and continue. We will then have a trade agreement with the EU, like Australia. But the impact of an inconclusive agreement for the United Kingdom would not be limited to trade in goods. No agreement would mean that all formal bilateral relations with the EU will be severed in January 2021, including in other crucial areas such as judicial and police cooperation. But they have other agreements in place, on trade and other issues: Boris Johnson claimed that the EU had refused to accept the “Canada” trade deal he wanted for the UK, so it would now be “more like Australia`s.” Australia is one of the fastest growing industrialized countries. As a result, bilateral trade between the EU and Australia has continued to grow in recent years, reaching some EUR 75 billion (goods and services) in 2017. In this context, the EU and Australia have agreed to negotiate a free trade agreement between the EU and Australia. On 22 May 2018, the Council of the European Union approved the opening of negotiations that began in June 2018 and are currently under way. “The outcome of the negotiations remains our clear preference.
However, whether we act with the EU under conditions similar to those of Canada or Australia, at the end of the transition period, we will regain our independence as a sovereign nation, which is what the British people voted for,” said a government spokesman. To date, the EU and Australia have maintained their trade and economic relations under the 2008 EU-Australia partnership. The aim is to facilitate trade in industrial products between the EU and Australia by removing technical barriers and improving trade in services and investment. Sky News is investigating what this could mean for the UK`s future relationship with the EU. The European Court of Justice has ruled that the provisions relating to arbitration between the investor state (including a special tribunal under some free trade agreements) fall within the shared jurisdiction between the European Union and its Member States and that, for this reason, their ratification should be authorised by both the EU and each of the 28 Member States.  For some products, there are also quotas, which means that a certain amount can be exported at no additional cost.