"On both sides of the Channel, businesses, including subsidiaries of US firms, should analyse their exposure to the other side and be ready, when necessary, to adapt their logistical channels, supply chains and existing contracts. They should also prepare for the worst case scenario of a ‘no deal,’ which would result in the return of tariffs, under WTO rules," Barnier said addressing the European American Chamber of Commerce (EACC) in Washington, DC, as quoted in a European Commission press release.
READ MORE: UK Cabinet Stepping Up Preparations for No Deal on Brexit — May's Spokesman
Barnier, however, stressed the goal of the EU-UK talks was to avoid a "no deal" Brexit, yet he did not rule out such an outcome. He also reiterated that "the cost of Brexit will be substantially higher" for London than for Brussels, adding that that it was "clearly a ‘lose-lose’ situation for both."
The European Union aims to reach an agreement on the United Kingdom’s withdrawal from the bloc by October, to provide the European Parliament and the UK Parliament with sufficient time to vote on the Withdrawal Agreement before the March deadline.
