Published: Wed, August 08, 2018
Economy | By

United Kingdom trade minister says 'no deal' Brexit more likely than not

United Kingdom trade minister says 'no deal' Brexit more likely than not

The pound on Monday fell to its lowest in almost three weeks, succumbing to a stronger dollar and comments by officials suggesting Britain could crash out of the European Union next year without securing a trade deal.

Britain's worldwide trade minister says it's likely the United Kingdom will fail to agree upon a divorce deal with the European Union before it leaves the bloc in March — the latest in a growing chorus of warnings that the negotiations are in crisis.

Mr Fox blamed the "ideological purity" of Brussels for wrecking Britain's chances after it dismissed Theresa May's Chequers plan for a single market in goods but not services. After reporting a 5 percent rise in first-half profit before tax, the lender said it remains cautiously optimistic for global growth in the remainder of the year.

Dr Fox's comments come after the governor of the Bank of England warned the risk of the United Kingdom leaving the European Union without a deal was "uncomfortably high".

"I think the intransigence of the Commission is pushing us towards no deal", he said in an interview with the Sunday Times.

British voters approval of Prime Minister Theresa May's handling of Brexit negotiations has fallen to 22 percent, according to the ORB International pollster on Monday, the lowest figure it has recorded.

The prime minister has said she plans to publish some 70 technical notes in August and September outlining contingency plans for different sectors in the event Britain tumbles out of the bloc without a deal. They say a no-deal Brexit could cause economic turmoil, bringing higher food prices, logjams around United Kingdom ports and disruption to everything from aviation to medicine supplies.

Mr. Fox told the paper that he had not thought the likelihood of no-deal was higher than 50-50, but the risk had increased.

Last week, Mrs May cut short her summer holiday to meet with French president Emmanuel Macron.

Meanwhile, another prominent Brexiteer, former minister Priti Patel, has called on Mrs.

Writing for the Telegraph website she said it did not meet the result of the referendum and "will leave us half-in and half-out, still bound to European Union regulations and constraints".

Prior to this, the pound stumbled after foreign secretary Boris Johnson resigned on July 9th, increasing the possibility of a no-deal Brexit.

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