British Prime Minister Boris Johnson is signalling that he won’t soften his Brexit stance now that he has a majority in Parliament, seeking to rule out any extension of an end-of 2020 deadline to strike a trade deal with the European Union.

Johnson’s office says the government will insert a clause in its Withdrawal Agreement Bill to rule out extending trade negotiations with the EU beyond next year. That could mean Britain leaving without a deal at the start of 2021, a prospect that alarms many U.K. businesses.

The pound plunged Tuesday on the news, falling 1 per cent to less than $1.32.

U.K. lawmakers are meeting in Parliament Tuesday for the first time since last week’s general election, and the bill is due to get its first vote in the House of Commons on Friday.

It implements a divorce agreement struck between Britain and the EU. It will see the U.K. leave the 28-nation bloc on Jan. 31 and enter a transition period until the end of 2020 while a new trade deal is negotiated. During the transition period, Britain will effectively remain member of the EU, though without voting rights.

Source: Read Full Article