New talks increase prospects of a Brexit trade deal

Significance

At a meeting on June 15 with European Commission President Ursula von der Leyen, UK Prime Minister Boris Johnson stated he wanted a deal despite previous threats to abandon the talks. The negotiating teams have now been made smaller in order to intensify talks and leave more room for political intervention from the main leaders on both sides.

Impacts

• The return to face-to-face negotiations should inject a new sense of purpose and understanding.
• Although unlikely, there is still the possibility to extend the transition period (which ends on December 31).
• UK Brexit border systems are probably not going to be fully operational by year-end, potentially exposing the country to illicit trade.