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MARKETS&POLITICS – Brexit: a “bad deal” will always be better than “no deal”

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May leans towards leaving the single market and the custom’s union. Negotiations breaking down close to the deadline, without the safety net of a transition agreement, would be worse than a ‘hard’ Brexit.

It is clear Brexit will be “hard”; that is, the UK will be outside the European Single Market and the EU Customs Union. The Conservative party manifesto confirms this. The only real question now is whether it will be orderly or not; that is, whether there is a transition to a comprehensive Free Trade Agreement (“a deal”) or a sudden exit to World Trade Organization (WTO) rules (“no deal”).

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