Could US Benefit From Brexit? Latest Deal In Limbo As Parliament Rejects Speedy Timetable

The British House of Commons rejected Prime Minister Boris Johnson’s three-day timetable for pushing his Brexit agreement through the House of Commons, sending Johnson back to the European Union to discuss the next step.

Johnson said he was disappointed lawmakers had voted for a delay of the Oct. 31 deadline for the United Kingdom to leave the European Union. Members of Parliament initially approved the agreement in a second reading 329-299, but then rejected the timetable for final approval 322-308, putting the measure into limbo.

Labour leader Jeremy Corbyn offered to enter into negotiations with Johnson to develop a “sensible” timetable. Other lawmakers called Tuesday’s vote a “humiliating defeat” for Johnson, who has said he’d rather be dead in a ditch than seek an extension of the Brexit deadline.

Johnson reached agreement with EU negotiators last week, but lawmakers balked at voting on the measure when it was first scheduled on Saturday. Johnson has threatened to call elections if Brexit is put off until January or later, but it was unclear what would happen if the EU offers a shorter extension.

A no-deal Brexit would eliminate Britain’s no-tariffs trade status with other EU members, raising the cost of exports and imports. A third of food in the U.K. is imported from the EU. There are also fears it could reignite conflict in Northern Ireland and force 35,000 commuters between the North and the Irish Republic to go through customs on their way to and from work. Additionally, a hard Brexit could threaten London’s financial center and lead to a real estate collapse as foreign financial companies move operations elsewhere.

The chancellor of the exchequer declined to produce an impact analysis of the deal, saying only that it is in the U.K.’s self-interest.

Britain’s eventual divorce from the EU could provide economic opportunities for the United States. Rep. George Holding, R-N.C., the ranking Republican on the House Ways and Means Committee, said in an op-ed piece published by CNN the U.K.’s involvement with the EU long has “stifled Britain’s economy and hampered trade with the United States.”

“If the U.K. regains control over its national trade policy when it severs ties with the EU, we will have an opportunity to forge a comprehensive U.S.-U.K. free trade agreement,” Holding said.

“While we already enjoy one of the strongest economic partnerships in the world — with total annual trade exceeding $260 billion last year — there is plenty of room for improvement.”