Britain and the European Union agreed Thursday on new Brexit trading arrangements more than four years after the U.K. voted to leave the bloc, narrowly avoiding a potentially disastrous nodeal scenario.
The two sides reached a zero tariffzero quota deal which will help smooth the trade of goods across the channel. It will bring relief to exporters on both sides that had been facing higher tariffs and costs had a deal not been reached.
The trade agreement still has to be ratified by the U.K. and EU parliaments in the coming days, with a vote in Westminster due Wednesday.
U.K. Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen praised the deal.
The arguments with our European partners were at times fierce but this, I believe, is a good deal for the whole of Europe, Johnson said at a press conference.
While von der Leyen said It is fair, it is a balanced deal and it is the right and responsible thing to do for both sides. She added that Europe would continue to cooperate in all areas with the U.K., which she described as a trusted partner.
Sterling trimmed some gains after the news was announced, but was still up 0.5 for the session at around 1.3557. Earlier this month, the currency breached a 2020 high of 1.3624, a level it hasnt hit since May 2018.
Some 47 years after joining the European Union, Britain officially left the bloc on Jan. 31, 2020. In doing so, it became the first ever nation to leave the EU. However, it agreed to continue…