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BREXIT minister David Davis resigned from the U.K. Government Sunday shortly after meeting with Prime Minister Theresa May having failed to alter her 'soft Brexit' plan which he feels betrays the referendum and cowers to the EU. The pound is vunerable to the uncertainty.

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UPDATE: Three of the five Brexit ministers have resigned: David Davis, Steve Baker and Suella Braverman. Will wait to see what all this means just yet. Does Theresa May take charge? Does it mean the chance of a no deal Brexit scenario “just got a lot more likely”.

The plan sees Britain keep EU regulations for most goods from Europe but can negotiate new deals with countries around the world independent of the EU.

The New Customs Partnership which would have Britain collect tariffs on behalf of the EU was rejected outright by Brexiteers in the Cabinet. Furthermore the technology needed to make the 'Max Fac' solution which replaces border controls with electronic monitoring is far away from being ready in time for Brexit.

The plan provides for a compromise on customs between the two systems whereby Britain would scrap the blanket tariffs applied by the EU on most goods coming in from outside Europe and instead set its own import duties. That imeansin the UK strike new trade deals with the rest of the world. With President Trump visiting the U.K shortly it is essential for free trade negotiations to begin between the two.

The deal enables companies to continue using supply chains through Europe where Britain will continue to apply EU tariffs on around 4 per cent of products which are to be classified as "unfinished goods".

European tariffs will also be put on goods which pass through Britain's ports on their way to the EU, but never enter the domestic British economy.

Prime Minister May's proposal for "full regulatory alignment" for good whereby Britain would copy European regulations on what products can be sold in shops. It's intended to ensure goods can still be imported and exported freely, while avoiding curbs on the services sector which makes up most of the U.K. economy. The problem however develops with countries who have different standards for their goods.

The rumor mill has more Cabinet resignations after the day-long Cabinet meeting at Chequers Monday.

 

 

From TradersCommunity News Desk

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