LONDON • The British government is urging businesses to make final preparations for a new trading relationship with the European Union from Jan 1, saying a new centre to monitor goods will help ease what it described as "short-term disruption" after Brexit.

With just a month to go before the end of the Brexit transition period, the government reminded exporters and importers that, with or without a trade deal, they must get ready for new paperwork and procedures at the border when Britain leaves the EU's single market and Customs union.

Many businesses say they are struggling to prepare because of a lack of clarity over the future relationship.

Britain and the EU are still trying to seal a trade deal amid big differences on issues such as fishing and state aid.

In a statement, the government said a new border operations centre would be set up to gather information on the flow of goods and people, adding: "Changes to the way we trade with Europe will likely mean that there is short-term disruption at the border."

Mr Michael Gove, the minister handling Britain's divorce deal, said: "This (centre) will help us tackle challenges quickly and decisively, and give us increased information which will make us safer and more secure."

And Business Minister Alok Sharma said he had written to nearly five million British companies to outline "the top actions they need to take".

The government's critics say it is putting the onus on business to take the hit from a new Customs regime rather than equipping them with the tools to deal with what they fear will be chaos at the border, even if the government secures a deal. Failure to secure a deal would mean higher prices and shortages of fresh food in supermarkets, the critics say.

The Office for Budget Responsibility has said such a failure would wipe an extra 2 per cent off the United Kingdom's economic output. Even with a deal, companies will have to navigate Customs checks and new rules at the border after Prime Minister Boris Johnson early on ruled out remaining in the EU's Customs union.

With each side urging the other to compromise, a French official said Britain must clarify its positions and "really negotiate", and cautioned that the EU would not accept a "substandard deal".

Both sides have contingency plans for a no-deal exit.

Even if a trade accord is secured, it is likely to be just a narrow deal on goods, and some disruption is certain as border controls are erected between Britain and the world's biggest trading bloc.

A trade deal would not only safeguard trade but also buttress peace in British-ruled Northern Ireland. German Chancellor Angela Merkel, Europe's most powerful national leader, has said some of the EU's 27 member states are getting impatient.

Irish Prime Minister Micheal Martin said a deal could be done this week. "There is a landing zone for an agreement," Mr Martin told the Irish Times. "We are now really in the end-game if a deal is to be arrived at this week."

REUTERS