Australia has signed no comprehensive trade deal with the EU. Their trade transactions have abided by the WTO regulations, except some special agreements on specific commodities.

Johnson’s Downing Street Office said in a statement on Saturday that the UK would negotiate constructively but equally would be ready to leave the transition period on Australia terms if agreement could not be reached.

German Chancellor Angela Merkel said on Saturday that the UK will have to “assume the consequences” of weaker economic ties with the EU at the end of the Brexit process.

Britain left the EU on January 31 and agreed transitional arrangements are in place until December 31.