Post-Brexit trade talks will not be extended after 2020 despite Nicola Sturgeon's warning

The announcement comes after Ms Sturgeon and Welsh First Minister Mark Drakeford have told the Prime Minister that ending the transition period at the end of the year “is the worst possible time”, adding that “at very best there will only be a damaging ‘bare bones’ trade deal or even worse, a disastrous no deal outcome”. 

The EU has indicated that it would be open to extending the post-Brexit transition period, but Mr Johnson has stressed the UK Government has no intention of seeking an extension. 

The Scottish and Welsh administration leaders are now pressing the UK Government to avoid a situation they argue will “pile a further very significant economic and social shock on top of the Covid-19 crisis”. 

The letter has been written amid news that the UK's economy shrank by 20 per cent in the first full month of the Covid-19 lockdown.

READ MORE: UK GDP shrank 20% in first full month of Covid-19 lockdown, statistics show

The full letter reads: “Without an extension to the transition period, at very best there will only be a damaging ‘bare bones’ trade deal or even worse, a disastrous no deal outcome. We are mindful that the Withdrawal Agreement only permits an extension of the transition period if this has been agreed before the end of June. 

“At the time the Withdrawal Agreement was signed, no-one could have imagined the enormous economic dislocation which the Covid-19 pandemic has caused – in Wales, Scotland, the whole of the UK, in the EU and across the world.” 

It adds: “While we hope that the second half of this year will see the beginnings of a recovery, we believe that exiting the transition period at the end of the year would be extraordinarily reckless. It would pile a further very significant economic and social shock on top of the Covid-19 crisis, hitting businesses whose reserves, in many cases, have already been exhausted, leading to more business closures and redundancies. But in this case, the shock would be avoidable. 

READ MORE: Scottish fishermen sceptical industry won't be 'expendable' in post-Brexit talks

“No-one could reproach the UK Government for changing its position in the light of the wholly unforeseeable Covid-19 crisis, particularly as the EU has made it clear it is open to an extension request.  

“We therefore call on you to take the final opportunity which the next few weeks provide to ask for an extension to the transition period in order to provide a breathing space to complete the negotiations, to implement the outcome, and to give our businesses the opportunity to find their feet after the enormous disruption of recent months.” 

But in a tweet on Friday, Cabinet Office minister Michael Gove said he has officially given notice to EU negotiators that the UK Government will not request an extension to the transition period.

I just chaired a constructive EU Joint Committee meeting with @MarosSefcovic

I formally confirmed the UK will not extend the transition period & the moment for extension has now passed. On 1 January 2021 we will take back control and regain our political & economic independence pic.twitter.com/nZjNpez8LI

— Michael Gove (@michaelgove) June 12, 2020

The statement was made during a meeting of the EU Joint Committee.

Mr Gove said: "I formally confirmed the UK will not extend the transition period & the moment for extension has now passed. On 1 January 2021 we will take back control and regain our political & economic independence."