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Boris Johnson mentioned Britain ought to put together for a no-deal Brexit as commerce talks stall

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British Prime Minister Boris Johnson returns to Downing Street.

Leon Neal | Getty Images News | Getty Images

LONDON – UK Prime Minister Boris Johnson said Friday that he would seek a no-deal Brexit unless the European Union made a fundamental change in approach.

"Unless the approach fundamentally changes, we will go for the Australian solution, and we should do so with great confidence," Johnson said after the negotiators failed to agree on a deal in front of him, according to Reuters. October 15th deadline imposed.

The "Australian solution" refers to trade on World Trade Organization (WTO) terms – in other words, without a formal trade agreement.

Sterling fell to session lows against the dollar in his comments, trading at $ 1.2870 after floating near $ 1.2961.

Johnson's words came after EU leaders said Thursday they wanted talks to continue in the coming weeks. The EU believes that there is still time to overcome the differences between the two sides.

However, the language used in the EU statement angered officials in London after Brussels urged the UK to "take the necessary steps to enable an agreement".

UK Brexit chief negotiator David Frost said he was "surprised by the suggestion that all future steps must come from the UK in order to reach an agreement".

Trade talks between the UK and the EU on issues such as fisheries, competition rules and governance have stalled for months. However, Michel Barnier, the EU's chief negotiator, said Thursday he was confident that these differences could be overcome in the next few weeks.

"We are available, we will remain available until the last possible day," said Barnier at a press conference.

"We want to give these negotiations every chance to be successful," he added.

Shortly after the UK chairman, the European Commission President Ursula von der Leyen said: "The EU is still working for a deal, but not at any cost. As planned, our negotiating team will go to London next week to step up these negotiations . "

However, a Johnson spokesman said late Friday that the talks were over and mentioned the possibility of future goods tariffs.

The UK stopped being a member of the European Union in January but agreed to comply with all EU rules by the end of 2020 so that both sides have time to strike new trade deals.

This means they have until the end of the year to finalize trade talks.

However, Johnson's comments on Friday suggest that both sides could act under WTO rules from January, adding additional barriers and higher costs to trade across the English Channel.

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Katherine Clark