EU warns UK against pre-Brexit trade pacts

The Dollar Business Bureau 

The European Union (EU) warned UK that it must abstain from any formal dialogues for bilateral trade pacts with the third countries till after its exit from the Union.

The rebuke by the European Union came before a visit on January 27 by UK’s Prime Minister Theresa May to the US for meeting President Donald Trump, with a possible deal on trade in the agenda.

“(Trade) is an exclusive matter of the EU. You can of course discuss, debate, but you can only negotiate a trade agreement after you leave the Union,” Margaritis Schinas, spokesman, European Commission told reporters in Brussels.

“There is no such thing in the treaties of the EU that prohibits anyone to discuss trade,” he added.

The European Commission manages trade policy matters for EU's 28 member nations group and will lead the exit discussions with the UK.

British Prime Minister, who is likely to start the 2-year exit proceedings in the month of March, has tested already the limits of the rules by beginning trade talks with Australia, India and New Zealand.

UK has swiftly concluded bilateral trade agreements with third countries, such as US and China in order to secure the British economy after its exit from the EU.

May’s visit to the US will be the first visit to White House by a foreign leader under the new President administration.