UK: May narrowly avoids defeat in parliament on EU trade laws

British Prime Minister Theresa May narrowly avoided a defeat in parliament at the hands of pro-EU lawmakers from her own party on Tuesday, fending 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 that had been […]

British Prime Minister Theresa May narrowly avoided a defeat in parliament at the hands of pro-EU lawmakers from her own party on Tuesday, fending 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 that had been closely followed by currency markets, and was seen as a test of May’s ability to deliver a British exit from the European Union and keep her job. 

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. 

Sterling GBP=D3 rebounded from the day’s lows against the dollar after the government sidestepped defeat on the amendment. 

But there was no guarantee that the issue of retaining a form of customs union – which pro-EU MPs see as vital to preserving industrial and commercial supply chains – would not resurface.