The “Australian solution” refers to trade on World Trade Organization (WTO) terms – in other words, without a trade agreement with the EU.
The British pound fell to a session low against the dollar on its comments, trading at $ 1.2870 after hovering near $ 1.2961.
His comments come after EU leaders said on Thursday they wanted negotiations to continue in the coming weeks. The EU believes that there is still time to try to overcome the differences between the two sides.
But the language used in the EU statement shocked officials in London after Brussels called on the UK “to take the necessary steps to make a deal possible.”
Britain’s main Brexit negotiator, David Frost, said he was “surprised by (the) suggestion that in order to get a deal all future initiatives have to come from the UK”.
Trade talks between the UK and the EU have been stuck on issues such as fisheries, competition rules and governance for months. However, Michel Barnier, the EU’s chief negotiator, said on Thursday he hoped those differences could be overcome in the coming weeks.
“We are available, we will remain available until the last possible day,” Barnier said at a press conference.
“We want to give these negotiations every chance to succeed,” he added.
Speaking shortly after the Prime Minister, European Commission President Ursula von der Leyen said: “The EU continues to work for a deal, but not at any cost. As planned, our negotiating team will travel to London next week to intensify these negotiations. ”
The UK ceased to be a member of the European Union in January, but agreed to continue to follow all EU rules until the end of 2020 so that both sides have time to put in place. place new trade agreements.
This means that they have until the end of the year to conclude trade negotiations.
However, Johnson’s comments on Friday suggest that starting in January, both sides could trade under WTO rules, which would mean additional barriers and higher costs for trade across the Channel.