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Even as Brexit falters, US and UK "finalise" a deal

BIScom Subsection: 
Editorial Staff

The UK's Treasury is not anxious to make it known that the UK is, despite the cries of various EU officials, in fact ready, willing and kind-of able to enter into bi-lateral agreements with third countries. The US Treasury, on the other hand, thinks shouting it from the rooftops is a good idea and has issued a notice regarding an agreement relating to "Prudential Measures Regarding Insurance and Reinsurance (U.S.-UK Covered Agreement. " But.. there's a stumbling block.

It's all agreed and the EU has nothing much to complain about because, as the US Treasury says, it is "consistent with the U.S.-EU Covered Agreement signed in 2017."

So, it looks like Brexit but it's really UK-in-the-EU 2.0

And, the deal is done but it's not signed: the US Treasury says "The U.S. Department of the Treasury and the Office of the U.S. Trade Representative today announced their intent to sign the Bilateral Agreement between the United States of America and the United Kingdom." That's because it is illegal, under EU law, for the UK to enter into such bilateral agreements, even, it appears, on a contingency basis (so, no self-executing smart contracts here, more's the pity).

So, hang on.. this big news from the US Treasury actually says... what?

Superficially, it says "move along, nothing to see here, continuity is the name of the game."

On a deeper level it is saying something of strategic importance to the City, in particular: it's saying "there's no reason for companies to debunk into the EU on our account. We are holding faith with London."

That, when you look at it properly, is big news.

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