Published: Mon, July 09, 2018
Markets | By Otis Pena

UK: David Davis resigns as Brexit Secretary

UK: David Davis resigns as Brexit Secretary

Barnier was speaking as British Prime Minister Theresa May sought to convince her divided government to her plan for Britain's future after it leaves the European Union next March and a status-quo transition period runs out at the end of 2020.

Meanwhile, it emerged that Foreign Secretary Boris Johnson backed the proposals at Chequers despite claiming that defending the plans was like "polishing a turd". Davis was a strong pro-Brexit voice in a Cabinet divided between supporters of a clean break with the bloc and those who want to keep close ties with Britain's biggest trading partner.

It claims the Prime Minister's Brexit promises appeared to be "a pretence and a charade meant to dupe the electorate" and concludes that "in the interests of our country and the future of the Conservative Party, I feel the time has come for a new leader".

They may also have been reassured by May reiterating her belief that any agreement with the EU should end the jurisdiction of the European Court of Justice, although British courts would still have to "pay due regard" to its rulings.

He said May's plan may be worse than leaving the European Union without any deal at all. That dream is dying, suffocated by needless self-doubt. In that respect we are truly headed for the status of colony - and many will struggle to see the economic or political advantages of that particular arrangement.

By late afternoon, the pound was down against the dollar GBP=D3 and the euro GBPEUR= after the resignation of Johnson, figurehead of the 2016 referendum campaign to quit the EU.

"No matter which trade deals are agreed, the fact that the United Kingdom is leaving the EU will create new red tape costs for imports coming into the United Kingdom from the Customs Union", said Duncan Brewer, lead author of the report and partner at Oliver Wyman.

"Fantastic news. Well done David Davis for having the principal and guts to resign", Brexit campaigner and Conservative lawmaker Andrea Jenkyns said on Twitter.

It was a rocky day for May, weakened after she lost the Conservatives' majority in parliament in an ill-judged election previous year.

During a session in parliament, May signalled that, after finally nailing her colours to a vision for Brexit, she had chose to face down the dissenters, who do not form a majority in parliament. May met German Chancellor Angela Merkel in Berlin on Thursday to restate her wish to negotiate a deep trade and security partnership after Brexit, her spokesman said.

"Over that time, I've listened to every possible idea and every possible version of Brexit".

Tourist jailed for video in Egypt
Egypt's government has come under criticisms for being intolerant towards dissenting views. She had been arrested in May before leaving Cairo.

A Downing Street source said MPs will continue to be briefed on the plans, and officials will explain how it does not "breach our manifesto pledges, or our Brexit red lines".

May's spokesman said she would fight any attempt to unseat her.

He criticised May's decision to maintain a "common rule book" with the European Union, mirroring the bloc's rules and regulations, saying it would hand "control of large swathes of our economy to the European Union and is certainly not returning control of our laws".

"What we are proposing is challenging for the European Union, it requires them to think again, to look beyond the positions they have taken so far and agree a new and fair balance of rights and obligations", she told parliament.

Mrs May's plan hasn't just been criticised by those who want a harder Brexit.

"Politicians come and go but the problems they have created for people remain", he tweeted. Some Brexit backers cheered Davis on.

May had been reluctant to spell out her strategy until now precisely for fear of igniting such furious rows.

In that meeting, May had appeared to win over her fractious cabinet and secure approval for her plan, which was to be published as soon as this week in a lengthy White Paper that would stake out Britains vision for future relations with Europe.

"This is not a betrayal. We will assess proposals to see if they are workable and realistic".

"We are faced with becoming a vassal state of the European Union, they have us exactly where they want us - unable to compete, taking enormous quantities of their products at inflated prices, protected from global competition by the fortress Europe tariff and regulatory wall and impeded from doing trade deals around the globe", added Longworth.

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