Johnson uses British law to demand a trade agreement with the European Union by the end of 2020
Economy News - Baghdad
British Prime Minister Boris Johnson will take advantage of the possibility of immediate separation from the European Union at the end of 2020 to push the union towards a comprehensive free trade agreement in less than 11 months.
In the most daring move since winning a majority in Thursday's elections, Johnson will use his parliamentary majority to ban any extension of the transitional period in the framework of the Brexit (British exit from the European Union) beyond 2020.
"Our official statement made clear that we will not extend the implementation period, and a new withdrawal agreement law will prevent the government from agreeing to any extension," a senior government official said on Tuesday.
After leaving the European Union on January 31, the United Kingdom enters a transitional period in which it remains a member of the Union in everything but the name while the two sides try to reach agreement on their post-Brexit relationship.
Any free trade agreement will include everything from financial services and rules of origin to tariffs, rules for government assistance and fishing, although the scope and sequence of any future deal is still under discussion.
The pound fell as much as 0.7 percent in Asian trading, recording $ 1.3236 after the ITV channel first reported the news.
By including his electoral promise not to extend the transitional period beyond the end of 2020 into law, Johnson reduces the period available for concluding a trade agreement to between 10 and 11 months from about three years.
Although the large majority achieved by Johnson gives him the flexibility to amend the law if he is forced to do so, he sends a message to the European Union, whose leaders have warned London that it will take more time to reach a comprehensive trade agreement.
Johnson and US President Donald Trump said on Monday that they are looking to continue close cooperation and negotiate an "ambitious" free trade agreement between the two countries.