Air Freight News

Why Johnson’s Brexit deal may not end his party’s Europe feud

The Brexit trade deal could be reopened if the two sides cannot resolve a dispute, or want to change the terms of the agreement, according to people familiar with the matter.

The risk is that this will mean years more arguing over how close Britain should be to its nearest trading partner, potentially making Brexit a permanent battleground in U.K. politics and denying some businesses the long-term certainty they want.

One of the biggest stumbling blocks in the negotiations was the question of how to settle disputes over trade in future. According to people familiar with the contents of the agreement, which has not yet been published, it is likely to work like this:

  • Either side can hit the other with tariffs in particular areas if they think it is justified under the terms of the agreement
  • If one side thinks the other is being unfair on such tariffs, they can take it to an arbitration panel, which is independent and will not be the European Court of Justice
  • Individual chapters of the trade agreement can be reopened to renegotiate particular areas where there are disputes
  • A nuclear option will be available to terminate the whole trade deal if it’s not working out, but the security agreement would stay in place

Prime Minister Boris Johnson is likely to use these points to help persuade euroskeptics in his Conservative Party that he has delivered Brexit in full and that the U.K. is now in control of its destiny.

The agreement struck on Thursday has “resolved a question that has bedeviled our politics for decades,” Johnson told a press conference. But the terms of the deal may still keep that question alive.

Bloomberg
Bloomberg

{afn_job_title}

© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

Similar Stories

https://www.ajot.com/images/uploads/article/methamphetamine.jpg
CBP intercepts over $30 million in methamphetamine at the Pharr International Bridge
View Article
https://www.ajot.com/images/uploads/article/DREW_%28new%29.JPG
WTCA Forum 2024 in New York underscores importance of international collaboration
View Article
ACD celebrates 2024 Annual Meeting in La Quinta, California

Today, the Alliance for Chemical Distribution (ACD) welcomed 666 members and industry leaders for its highly anticipated 2024 Annual Meeting held in La Quinta, California.

View Article
Holiday spending still on track for steady growth amid ‘mixed signals’ in recent jobs and GDP data

The National Retail Federation still expects steady sales growth for the winter holiday season despite contradictions in the latest economic indicators, NRF Chief Economist Jack Kleinhenz said today.

View Article
Trump Presidency will reignite US-China trade war and threaten a spike in ocean container shipping markets / Xeneta

Donald Trump’s victory in the US Presidential Election is ‘a step in the wrong direction’ for international trade as importers fear another spike in ocean container shipping freight rates.

View Article
https://www.ajot.com/images/uploads/article/Census_Bureau.png
U.S. international trade in goods and services, September 2024
View Article