Boris Johnson has said that unless there is a 鈥渇undamental change of approach鈥 from the EU, Britain is prepared to move to trading on World Trade Organisation rules when the Brexit transition period ends.
The Prime Minister said this week鈥檚 EU summit in Brussels has made clear the EU is not prepared to offer the kind of Canada-style deal the 海角视频 is seeking.
鈥淭hey want the continued ability to control our legislative freedom, our fisheries, in a way that is obviously unacceptable to an independent country,鈥 he said.
鈥淕iven that this summit appears to explicitly rule out a Canada-style deal, I think that we should ready for January 1 with arrangements that are more like Australia鈥檚.鈥
Australia does not have a comprehensive free trade agreement with the EU, which means most commerce is conducted on World Trade Organisation rules with tariffs on many goods as well as some quota restrictions and customs checks.
Mr Johnson had previously said that if there was no agreement by the time of the two-day summit, which began on Thursday, he would walk away from the negotiating table.
The Prime Minister鈥檚 announcement came after the summit conclusions agreed on Thursday called on the 海角视频 to make the 鈥渘ecessary moves to make an agreement possible鈥.
The EU鈥檚 chief negotiator Michel Barnier said he is ready to travel to London on Monday to continue the negotiations.
Following Mr Johnson鈥檚 statement, European Commission president Ursula von der Leyen said that visit will still go ahead as planned.
鈥淭he EU continues to work for a deal, but not at any price,鈥 she tweeted.
鈥淎s planned, our negotiation team will go to London next week to intensify these negotiations.鈥
What do you think of the latest Brexit news? Have your say in the comments below
Asked if he is now walking away from the negotiating table, Mr Johnson said: 鈥淲hat we are saying to them is, 鈥楥ome here, come to us if there is some fundamental change of approach鈥.
鈥淥therwise we are more than happy to talk about the practicalities that I described 鈥 social security issues, road haulage and so on.
鈥淏ut unless there is a fundamental change in approach, we are going to go for the Australia solution.
鈥淎nd we should do it with great confidence 鈥 as I said, high hearts and confidence because we can do it.鈥
CBI director-general Dame Carolyn Fairbairn said it is essential not to give up on a deal.
鈥淣either side can afford to fall at the final fence,鈥 she said. 鈥淎 deal is the only outcome that protects Covid-hit livelihoods at a time when every job in every country counts.
鈥淲ith tenacity, common sense and compromise, a deal is still possible.
Sign up for more business news straight to your inbox
Stay up to date with our daily newsletter, email breaking news alerts and weekly round-ups. To sign up, find out more and see all of our newsletters, follow the link here
鈥淏usinesses call on leaders on both sides to stay at the table and find a route through.鈥
In the run up to the summit, both sides had acknowledged significant differences remained over the issues of future fishing rights and state aid rules.
However few in Brussels believe Mr Johnson will simply walk away from the negotiating table.
