Brexit options narrow after the EU's rejection May's plan

27 Jul 2018 02:56 PM

The European Union yesterday rejected a key part of the British Prime Minister's proposal to conclude a trade agreement with the European Union, which brought it back to the drawing board 12 weeks before divorce deal is meant to be signed.

Theresa May believed her proposal on customs was the best hope of a deal to leave the EU, which could also be offered to the divided parliament in London. But in frank and public criticism, chief European negotiator Michel Barnier said he would never accept her plan.

At present, Theresa May is besieged with all the options she risks being overthrown, and increasing the chances of Brexit without a deal at all. Even Barnier suggested one way out of the crisis was for the UK to remain in the EU's customs union, although the proposal could provoke anger from its party.

On May 12, Theresa May put forward a model whereby the UK would collect EU tariffs for goods entering the country as part of a plan to keep trade with the EU flowing freely after Brexit, but Barnier said the EU would not allow non-members to collect customs duties.

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