Market Overview

UK PM Theresa May Brings Draft Brexit Deal To Cabinet

UK PM Theresa May Brings Draft Brexit Deal To Cabinet

The people of the United Kingdom voted in the 2016 referendum to leave the European Union, and after a long wait, a draft of the Brexit separation deal is on the table.

What Happened

The U.K. and EU reportedly reached a preliminary agreement that must be ratified and approved, Bloomberg reported.

U.K. Prime Minister Theresa May needs approval of her Cabinet of ministers along with a majority of members of Parliament. One of the main provisions of the agreement calls for the U.K. to remain in a customs union with the EU to avoid border checks on goods moving from EU member state Ireland and Northern Ireland, which is part of the U.K.

Why It's Important

Hard "Brexiteers" — politicians and individuals who want a complete separation from the EU — argue that the agreement continues to bind the country to EU trade rules, perhaps indefinitely.

For example, former Secretary of State for Foreign and Commonwealth Affairs Boris Johnson told Sky News the deal not only binds the U.K. to accept EU trade rules, but now takes away the country's ability to "shape them."

What's Next

May was set to hold a meeting at 9 a.m. Wednesday to make the case for ministers to support the draft agreement. May could have trouble gaining support even from pro-EU lawmakers who are saying the Brexit deal is worse than the status quo, the Associated Press reported.

Related Links:

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Posted-In: BrexitNews Eurozone Politics Top Stories Markets Media General Best of Benzinga


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