Brussels may include 'punishment clause' in post-Brexit trade deal
by Daniel Boffey in Brussels and Heather Stewart from on (#39HWH)
Exclusive: EU could impose punitive tariffs on key British exports such as beef if UK seeks to lower regulatory standards
The EU is exploring the inclusion of a "punishment clause" in any future trade deal with the UK to allow Brussels to slap tariffs on key British exports to the bloc if the UK government seeks to gain a commercial advantage by lowering regulatory standards.
In a move that would torpedo the post-Brexit plans of the British cabinet's key Brexiters, any significant attempts by Whitehall to lower regulatory costs to British businesses in one part of the economy could be met by tariffs from Brussels on another.
Related: Ireland will have final say on progress of Brexit talks, says EU
What is the EU withdrawal bill?
Continue reading...