Brexit to be triggered 29 March
British Prime Minister Theresa May will file papers invoking article 50 of the Treaty on European Union on March 29, kicking off a Brexit process that will, hopefully, be concluded within two years. During this two-year process, Britain’s desire to have a favourable trade deal with the European open market will be negotiated against the bloc’s belief that Britain should not benefit from leaving the EU.
On Monday, Britain’s envoy to the EU informed its president, Donald Tusk, of Ms. May’s plans to invoke article 50 at the end of the month. Now, the race is on to see whether Ms. May’s government can regain power over immigration and lawmaking whilst retaining access to free trade with the EU.
The EU is by far Britain’s largest trade partner, but it is also resolute that the country shouldn’t benefit from leaving the bloc. There is an obvious logic to this: if the UK is seen to have a better overall deal outside of the EU than within it, other countries will be emboldened to leave – or threaten to leave – when the winds of populism blow through their political institutions.
The UK also has a domestic challenge to face, thanks to Brexit. Scotland, which just a few years ago voted to remain part of the UK in a public referendum, is now reconsidering that decision.
Bexit secretary David Davis made the following statement:
“We are on the threshold of the most important negotiation for this country for a generation. The government is clear in its aims: a deal that works for every nation and region of the U.K. and indeed for all of Europe –- a new, positive partnership between the U.K. and our friends and allies in the European Union.”
The opinions in this article do not reflect those of Dominion Fund Management Limited, and in the instance of any forward-looking statements, these should not be construed as advice.
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