U.K. Parliament Votes Down May’s Brexit Deal Lawmakers’ rejection of divorce agreement with EU makes delay of Britain’s departure from bloc likely By Max Colchester and Jason Douglas

https://www.wsj.com/articles/u-k-parliament-votes-down-mays-brexit-deal-11552418563

LONDON—British lawmakers rejected Prime Minister Theresa May’s Brexit divorce deal for a second time, making a delay in the U.K.’s scheduled March 29 departure from the European Union all but inevitable and intensifying political turmoil and business uncertainty.

The defeat on Tuesday—by 391 votes against to 242 in favor—opens a new chapter in Britain’s chaotic exit from the EU, a process that has already cost banks and companies billions, riven British society and splintered its political landscape.

The deal was meant to set the terms of the end of the U.K.’s decadeslong membership in the EU and its separation from a bloc that represents half of all British trade. Mrs. May’s defeat makes it likely that Parliament will force the government to delay Brexit beyond the end of the month to allow for further negotiations.

Mrs. May could now seek further concessions to her bill from the EU. However, a delayed departure increases the chances for a range of other outcomes, including another referendum over the U.K.’s membership in the EU or a general election.

Alternatively, Mrs. May could try to seek a different path to a majority vote by pursuing a closer relationship with the EU than she has spelled out so far, for example by seeking to stay inside the bloc’s common market or its customs union.

The next step is for British lawmakers to vote Wednesday on whether to rule out leaving the bloc on March 29 without a deal, an outcome that would cause likely widespread disruption to travel and trade. A subsequent vote, likely on Thursday, will decide whether to postpone the scheduled departure date to allow for further negotiations. Both proposals are expected to pass.

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