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UK-EU Exit Deal Fails for Second Time, Setting Stage for Votes on No-Deal Brexit or Delay

A transition deal on the United Kingdom’s exit from the European Union failed for a second time in the U.K. Parliament on March 12, setting up a series of votes on whether to leave the EU with no deal and whether to delay Brexit, according to a statement following the vote from U.K. Prime Minister Theresa May.

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On March 13, Parliament will open debate and then vote on a resolution to leave the EU without any transition deal on March 29. That would mean the end to customs union and trade relations on third-country World Trade Organization terms. The vote will be a “free vote,” with May allowing Tory members of parliament to vote without any specific direction, according to their conscience.

Prior to that vote, the U.K. government will “publish information on essential policies which would need to be put in place if we were to leave without a deal,” May said in her statement. “These will cover our approach to tariffs and the Northern Ireland border, among other matters.” If Parliament “votes to leave without a deal on 29 March, it will be the policy of the Government to implement that decision,” May said.

If the vote on a no-deal Brexit fails, May will then on March 14 schedule a vote on whether to delay the U.K.’s exit from the European Union, currently set for 11 p.m. March 29 London time, or 12 a.m. March 30 in most of the EU. If Parliament “votes for an extension, the Government will seek to agree that extension with the EU and bring forward the necessary legislation to change the exit date commensurate with that extension,” May said.

A vote to delay will not “solve the problems we face,” and the “EU will still want to know what we mean to make of such a decision,” May said. “This House will have to answer that question. Does it wish to revoke Article 50? Does it want to hold a second referendum? Or does it want to leave with a deal but not this deal? These are unenviable choices, but thanks to the decision the House has made this evening they must now be faced,” she said.

The U.S.-U.K. Business Council called on Parliament to reject a no-deal Brexit and vote to delay, “albeit with a clear idea of what they aim to accomplish during such an extension,” it said in a statement after the vote. “There are now less than 3 weeks to go before the UK is scheduled to leave the EU with or without a deal. Throughout this process, American investors and exporters have repeatedly called for clarity and certainty as the UK looks to reset its relationship with the EU. Unfortunately, today’s vote hasn’t advanced the ball,” it said.