Prime Minister Theresa May narrowly avoided a defeat in parliament at the hands of pro-EU lawmakers from her own party on Tuesday.<\/p>\n
By this escape she fends off a rebellion that had threatened to deepen a crisis over her Brexit strategy.<\/p>\n
Parliament voted 307 to 301 against an amendment to trade legislation in a vote that had been closely followed by currency markets.<\/p>\n
The vote was seen as a test of May\u2019s ability to deliver a British exit from the European Union and keep her job.<\/p>\n
The amendment would have required the government to try to negotiate a customs union arrangement with the EU if by Jan. 21, 2019, it had failed to negotiate a frictionless free trade deal with the bloc.<\/p>\n
Sterling GBP=D3 rebounded from the day\u2019s lows against the dollar after the government sidestepped defeat on the amendment.<\/p>\n
But there was no guarantee the matter of retaining a form of customs union \u2013 which pro-EU MPs see as vital to preserving industrial and commercial supply chains \u2013 would not resurface.<\/p>\n
Tuesday\u2019s legislation was technical in nature \u2013 focusing on converting trade deals between the EU and third countries into bilateral deals with Britain, and was not originally intended to define new trade policy.<\/p>\n
However, the government did suffer an unexpected defeat on a separate amendment, which means it will now be required to seek an agreement that allows Britain to have continued participation in the European medicines regulatory framework.<\/p>\n
\u201cVery significant defeat of government tonight on European medicines regulation amendment. Near miss on customs union amendment. Margin is closing on these votes and we will keep at it,\u201d tweeted Keir Starmer, Brexit spokesman for the opposition Labour Party, which favours a customs tie with the EU.<\/p>\n
May is expected to face many more challenges to her strategy after a summer break as she works her way through a mountain of Brexit-related legislation.<\/p>\n
Any final deal with the EU will also require ratification by a bitterly split parliament.<\/p>\n
The close shave in parliament was May\u2019s third this week.<\/p>\n
This shave underscores the difficulty she faces in passing legislation on one of the most divisive and important decisions in modern British history with only a minority government and her Conservative Party at war with itself.<\/p>\n
By prevailing in Tuesday\u2019s vote, she avoided for now the prospect of having to go back on her word that Britain will not be part of any customs union after leaving the EU \u2013 something that would have enraged the pro-Brexit wing of her party.<\/p>\n
The prospect of continued drama in parliament and doubts over the future of May\u2019s \u201cwhite paper\u201d Brexit plan is testing the patience of businesses that depend on cross-border trade.<\/p>\n
This is only a starting point for talks with the EU .<\/p>\n
\u201cWe can\u2019t rely on anything,\u201d said Warren East, CEO of UK engine maker Rolls Royce, who said his firm could start stockpiling parts soon if it looked like Britain was heading towards a disorderly exit from the EU.<\/p>\n
May\u2019s vulnerability in parliament, where she lost her party\u2019s majority in an ill-judged election last year, was also laid bare on Monday.<\/p>\n
For instance, her decision to accept demands of hardline pro-Brexit lawmakers stirred a revolt among those who want to keep the closest possible ties in the EU.<\/p>\n
On two of Monday\u2019s votes her majority was cut to three, suggesting that May will struggle to get Brexit legislation through a polarised parliament, which could threaten any final approval of a Brexit agreement with the EU.<\/p>\n
May vows to stick to her plan to negotiate the closest possible commercial links \u2013 \u201ca common rule book\u201d for goods \u2013 with the bloc.<\/p>\n
According to her, this is the only way to balance political and economic priorities for Brexit, the most momentous shift in British foreign and trade policy for decades.<\/p>\n
But her plan so far has pleased few on both sides, compounding divisions within the Conservative Party that have so far frustrated progress in talks with the EU.<\/p>\n
It triggered a war of words between eurosceptic and pro-EU factions.<\/p>\n
\u201cWe can\u2019t please everybody. We have to have a compromise position that enables the country to get an agreement with the European Union,\u201d trade minister Liam Fox told the Media.<\/p>\n","protected":false},"excerpt":{"rendered":"
Prime Minister Theresa May narrowly avoided a defeat in parliament at the hands of pro-EU lawmakers from her own party on Tuesday. By this escape she fends off a rebellion that had threatened to deepen a crisis over her Brexit strategy. Parliament voted 307 to 301 against an amendment to trade legislation in a vote […]<\/p>\n","protected":false},"author":5,"featured_media":48188,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,2],"tags":[30575,44991,35338],"yoast_head":"\n