It looks increasingly unlikely that the U.K. will reach a trade
agreement with the European Union — and that could also harm the chances
of a future deal with the United States.
The U.K. government outlined on Wednesday how it plans to manage trade following its full breakup from the EU at the end of the year with two significant announcements.
Firstly, it proposed legislation, called the Internal Market Bill, which gives the U.K. government stronger powers over trade rules in Scotland, Wales and Northern Ireland - something lawmakers in these countries have issue with.
Secondly, the government said the U.K. would not follow EU rules for state aid — a key stumbling block in the negotiations with Europe to date. Instead, it will apply state aid rules agreed at the World Trade Organization level, which are less strict.
“It’s a recipe for disaster,” Paolo Palmigiano, head of the U.K. competition, EU and trade practice at the law firm Taylor Wessing, told CNBC.
Read more at:
Brexit: UK puts trade deal with the EU and the U.S. at risk
The U.K. government outlined on Wednesday how it plans to manage trade following its full breakup from the EU at the end of the year with two significant announcements.
Firstly, it proposed legislation, called the Internal Market Bill, which gives the U.K. government stronger powers over trade rules in Scotland, Wales and Northern Ireland - something lawmakers in these countries have issue with.
Secondly, the government said the U.K. would not follow EU rules for state aid — a key stumbling block in the negotiations with Europe to date. Instead, it will apply state aid rules agreed at the World Trade Organization level, which are less strict.
“It’s a recipe for disaster,” Paolo Palmigiano, head of the U.K. competition, EU and trade practice at the law firm Taylor Wessing, told CNBC.
Read more at:
Brexit: UK puts trade deal with the EU and the U.S. at risk
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