Boris Johnson ready for battle with Brussels over trade

Brexit: Boris Johnson warns UK would walk away with no trade deal rather than accept EU rules

Pound hit by Brexit fears after Johnson's tough talk

ING analysts said that Johnson wanted to signal that he had no interest in regulatory alignment and was prepared to walk away from talks.

Prime Minister Johnson said: "We have often been told that we must choose between full access to the European Union market, along with accepting its rules and courts on the Norway model, or an ambitious free trade agreement, which opens up markets and avoids the full panoply of European Union regulation, on the example of Canada. But what he labels "mumbo-jumbo" is not anti-American at all, it is rather a deep-seated opposition to allowing the import of meat made in atrocious conditions, GM foods, higher medicine prices, cancer-causing chemicals, and handing over vast swathes of our society to big business", added Nick Dearden of Global Justice Now, an organisation which develops research of free trade.

European Union chief negotiator Michel Barnier was equally emphatic that the EU's 27 remaining nations wouldn't agree to any British trade deal just to avoid a costly, chaotic "no-deal" at the start of 2021, when an 11-month post-Brexit transition period ends.

Johnson and his ministers have struck a more hardline stance in recent days, paving the way for a much starker break with Brussels than planned under former prime minister Theresa May.

"The UK will maintain the highest standards in these areas -- better, in many respects, than those of the European Union -- without the compulsion of a treaty and it is vital to stress this now", Johnson will say.

Investors have consistently warned against a no-deal Brexit, with businesses concerned trade could be hit significantly. "We've modelled every possible ramification of Brexit and the fact remains that our entire business both in the United Kingdom and in Europe is not sustainable in the event of WTO tariffs".

The two sides are expected to prioritise striking arrangements for the sectors that are most vulnerable to a no-deal scenario.

Worries over trade negotiations sent the pound sinking more than 1.1 percent against the dollar in London midday deals on Monday. "But they're up against a tough opponent". The EU-Canada deal that the British government cites as a model took seven years to negotiate.

A 33-page draft mandate for negotiations released as Barnier spoke had one section in bold, and that read: "the envisaged partnership must ensure open and fair competition, encompassing robust commitments to ensure a level playing field". A free trade deal was only of limited value, he said. This "implementation period" (actually a negotiating period) can be extended by mutual agreement for up to two years.

Given the short time frame, Barnier said topics will be worked on in parallel, while the focus will be on progressing those areas where the consequences of a no-deal separation would be most serious.

"Humanity needs some government somewhere that is willing at least to make the case powerfully for freedom of exchange, some country ready to take off its Clark Kent spectacles and leap into the phone booth and emerge with its cloak flowing as the supercharged champion of the right of populations of the earth to buy and sell freely among each other", Mr Johnson said.

"Under such an agreement there would be annual negotiations with the European Union, using the latest scientific data, ensuring British fishing grounds are first and foremost for British boats".

Just 60 hours after Britain became the first country ever to leave the EU, Johnson dug in his heels about future relations.

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