Transition to be agreed with Brexit trade deal - UK’s PM May

LONDON, (Reuters) - British Prime Minister Theresa May signalled yesterday that any Brexit transition deal would be put together as part of a wider trade agreement - potentially stripping companies of the time they need to prepare to leave the European Union.

International businesses have become increasingly vocal in recent weeks over fears that Britain could crash out of the world’s biggest trading bloc without a deal, sending shockwaves through global markets and fracturing intricate supply chains.

May has promised to retain full access to the EU’s single market for two years after Brexit to limit the disruption for companies. But she told parliament on Monday the full terms of any transition, or implementation period, would be agreed at the same time as the country agrees a new trade deal.

That needs to be completed this time next year, just six months before Britain is due to leave the EU in March 2019.

“An implementation period is about a period which is adjusting to the future relationship,” May said. “That’s the basis on which I put it forward to the European Union, and that’s the basis on which we’ll be negotiating an agreement on it.”

May’s spokesman said the government position was as set out in the prime minister’s speech in Florence, responding during a daily briefing session to repeated questions about when companies would see a final transition deal.

“We’re looking to finalise a deal all in one go,” her spokesman said.

Several opposition lawmakers also asked the prime minister to clarify what the stance would mean for businesses.

Concern over Britain’s future trading relationship has been growing for weeks. The country’s five leading business organisations warned on Monday that companies would start moving jobs and investment out of the country if they do not get a transition deal soon.