International Monetary Fund IMF advises United Kingdom and European Union to extend the period to negotiate a post-Brexit trade deal.
Media reports said Kristalina Georgieva The Managing director of International Monetary Fund IMF advises it would be wise to extend the period.
She said because of the “unprecedented uncertainty” arising from the pandemic it would be “wise not to add more on top of it”.
“I really hope that all policy makers everywhere would be thinking about [reducing uncertainty. It is tough as it is, let’s not make it any tougher,”
Furthermore Ms Georgieva said:
“My advice would to seek ways in which this element of uncertainty reduced in the interests of everybody, the UK, the EU, and the whole world”.
The UK government chose to put into law a refusal to trigger provisions to extend the Brexit implementation phase beyond the end of the year.
That means, without a deal, the UK and EU would trade on World Trade Organization terms, including significant new taxes and checks on trade, from the beginning of next year.
Earlier both the UK and EU announced a curtailed timetable to carry out three negotiation rounds by video conference.
Ms Georgieva says she is now preoccupied with trying to find ways to help alleviate “a global recession we have not seen in our lifetimes”,
The IMF chief, a former vice president of the European Commission, also heaped praise on the UK Treasury and Bank of England’s “early” and well-coordinated economic response to the crisis.
“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”.
The IMF is currently hosting a virtual version of its annual meetings with world finance ministers and bankers.