Brexit Negotiations Falter

Oct 19, 2017

Brexit talks are failing to make progress. After five rounds of talks without an breakthrough. Britain is scheduled to leave the European Union less than 18 months. At that time, thousands of EU regulations will cease to apply in Britain. According to Euroskeptics, “The U.K. has been far too weak in the negotiations, far too accommodating.” The EU is suspected of wanting to draw out the negotiations for as long as possible so it can gain the “maximum of benefit for them.” Britain’s current negotiating stance is that it wants a two-year transition period after Britain leaves the EU. A looming possibility is that there will be no agreement. In that case, Britain and the EU will use World Trade Organization rules for trading. This “would mean tariffs on goods and uncertainty for services.” Worst case scenarios include thousands of jobs being imperiled, air traffic complications, weaker U.K. economic growth, and millions of EU and British citizens in limbo. A more optimistic perspective believes that Britain could thrive without the crushing EU regulations on the economy. Britain could embrace a Singapore model with “lower tax, lower regulation, lower tariff, more enterprise-friendly economy.” The EU wants and estimated $70 billion from Britain “to settle its financial commitments to the bloc. British negotiators think that is too high and won’t agree to any amount of money until the EU commits to discussions on future relations.