No Deal Brexit Possible

The chances of the UK leaving the EU without a deal are "60-40", British International Trade Secretary Liam Fox said in an interview published on Sunday.

Speaking to the Sunday Times, Fox said the prospect of a deal is "now up to the EU," as the UK has "made an offer to the EU which we believe is generous and some in the UK believe is over-generous," Politico reported.

He said a no-deal scenario, in which Britain would exit the EU in March 2019 without having come to a withdrawal agreement with Brussels, looks more likely by the day.

"I think it's essential that 'no deal' looks credible to the EU," Fox said. "If it's causing some anxiety in Britain, think what it's causing in Brussels."

Fox said Britain taking a hard line on a no-deal scenario means the country's "negotiating hand is getting stronger every day and we shouldn't do anything to undermine that."

Fox was in Japan recently as part of a trade mission to discuss post-Brexit trade deals, and said while discussions were positive, those he met with were "concerned" about a no-deal Brexit. He said he asked Japanese ministers to "tell the EU" if they were worried.

The trade secretary's comments came two days after Bank of England Governor Mark Carney said the chances of a no-deal Brexit are "uncomfortably high" and the financial system was preparing for the potential shock.