Brexit crisis: What it means for Australia

Months of further uncertainty over the Brexit question could have a major impact on trade deals and talks. Here’s what’s at risk for Australia and the rest of the world.

Months of further uncertainty over the Brexit question could have a major impact on trade deals and talks between Britain and Australia. Here’s what is at risk for Australia and the UK.

WHAT IT MEANS FOR AUSTRALIA

· A new trade deal with the UK will be stalled if Labour gets its wish to delay Brexit

· A general election win for Mr Johnson would give him a mandate and reinforce already strong ties with Australian Prime Minister Scott Morrison

There is anger among voters who voted to leave the European Union and say their wishes have not been respected. Picture: AFP

· Talks on new easier visas between Australia and the UK, floated by lobbyists, would be derailed

· A Jeremy Corbyn-led Labour win would threaten traditional trade and security pacts between the UK and the rest of the world

WHAT IT MEANS FOR THE UK

· Months of further uncertainty over the Brexit question, which will dry up investment and potentially spark a recession

· Anger among voters who voted to leave the European Union but say their wishes have not been respected

· A potential royal row if Mr Johnson refuses to accept parliament’s decision and asks the Queen not to give Royal Assent to any bills

· The European Union now has a stronger hand in negotiations, with no incentive to bend as it appears no-deal may be off the table

WHY NOW?

Johnson took office six weeks ago promising to deliver on the 2016 referendum vote for Brexit, and take Britain out of the EU on October 31, whatever happens.

He says he wants to agree amicable exit terms with Brussels but, if this is not possible, insists that Britain should leave the bloc anyway.

Boris Johnson’s hopes of an October 15 election have been dashed. Picture: AFP

A majority of MPs, including 21 members of his own Conservative party, voted on Tuesday evening local time to begin a process aimed at stopping a “no deal” scenario.

HOW CAN HE CALL AN ELECTION?

Under the Fixed-term Parliaments Act 2011, elections should take place every five years. But if two-thirds of MPs agree, a poll can be held earlier.

Johnson tabled a motion on Wednesday using the form of words specified in the law: “That there should be an early parliamentary general election”.

MORE NEWS

Brexit split: Johnson demands election

Election looms after Boris defeated on Brexit

Addressing MPs after his defeat on Tuesday, he said it would be put to a vote if they decided to go ahead with their plan to block a “no deal” Brexit.

However his bid for a snap election failed after the Labour Party abstained the vote delivering a 298 to 56 result on whether an election should be held. That’s not enough to reach a two thirds majority threshold required under UK law.

WOULD AN ELECTION STOP A ‘NO DEAL’ BREXIT?

The parliamentary vote that triggered Johnson’s election call paved the way for opposition MPs to pass legislation that would block a “no deal” Brexit.

They do not have much time, as Johnson had already controversially announced he would suspend parliament from next week until October 14.

But if they succeed in getting the law passed in the Commons and the Lords, it would be binding on any government that wins the next election.

ARE THERE ANY OTHER ROUTES TO AN ELECTION?

The political impasse over Brexit has led many commentators to believe an election is inevitable in the next few months.

While MPs refused to back Johnson’s call this week, Labour could still seek to force an election at a later date by calling a confidence vote in his government.

If defeated, the government would have 14 days to show it has the support of a majority of MPs before having to call a snap poll.

Originally published as Brexit crisis: What it means for Australia