UK Parliament to Vote on Brexit Deal Today

MPs will decide whether to pass Johnson's deal into law.

Economic News
Dec 20, 2019

A week after the general elections in the United Kingdom, Parliament is back to business. About 60 Labour seats have been given to the Conservatives, who now hold the majority. Today on the agenda for MPs is a crucial vote on the withdrawal agreement that Prime Minister Boris Johnson negotiated with the European Union back in October.

The deal has been criticized for being worse than Theresa May’s, especially in that it would create a border between Britain and Ireland, due to Northern Ireland’s desire to stay aligned with EU rules and preserve its relationship with the Republic of Ireland. However, right before the previous parliament was disbanded and a new election was planned, MPs did show support for the deal, only to reject its timetable.

Some small changes have been made to Boris Johnson’s withdrawal agreement since then. For example, the Labour party heavily criticized it for the removal of a clause that was aimed to protect workers’ rights. The government responded that this issue will be addressed in a separate bill crafted for that purpose.

A bigger objection is expected to the amendment that shortens the transition period for the United Kingdom until the end of 2020 (11 months, down from nearly 3 years). Many MPs have said that negotiating on all issues with the European Union in order to secure a free trade agreement will be a long and difficult process.

The EU is highly protective of its single market and has high standards for the quality of the products that enter it. Boris Johnson’s statement from earlier today that the UK will not adhere to EU regulation just further complicates the issue. As a result, many MPs are doubtful that Johnson’s government will be able to get a trade agreement in just 11 months, and some version of a hard Brexit might still become a reality, despite the withdrawal agreement.

Still, the Tory majority in Parliament means the deal will most probably pass. The United Kingdom will then be scheduled to leave the EU on January 31.

Anna Sneider

Economic News

Donald Trump Got Impeached

Trump is impeached, and will not go to trial in the Senate.

Anna Sneider
Dec 19, 2019

Economic News

Market Overview, December 18

The markets are slowing down as the holidays approach.

Anna Sneider
Dec 18, 2019

Economic News

Johnson to Cut Negotiation Period

The UK wants to end the transition period after Brexit by the end of 2020.

Anna Sneider
Dec 17, 2019