What's going on?

Seven countries, including the US and Canada, have started to speak out this week against an agreement on the United Kingdom�s ability to import goods after it �Brexits� the European Union (EU).

What does this mean?

As things stand right now, the EU represents the interests of all 28 member states at the World Trade Organization (WTO), an international body that helps organize trade relations between virtually every country in the world. One way it does so is by distributing a certain number of import quotas � these allow countries to import a certain amount of stuff with lower taxes.

However, after Brexit, the UK will be managing its own WTO quotas (as opposed to partaking in the EU�s). It recently negotiated an agreement with the EU on how to divvy them up, but seven countries have rejected it because they say it restricts where their exporters can sell their goods (why? You can read about it here).

Why should I care?

The bigger picture: Brexit will have global (not just European) repercussions.


One important argument for Brexit was that the UK might be able to better pursue its own trade interests if it left the EU. Whether or not that�s true, this episode suggests that other countries might use Brexit as an opportunity to reshape existing trading relationships (especially since the UK is one of the world�s largest importers).

For markets: �America First� has proven to be more than just a campaign slogan.


The Trump administration has taken many steps to help American businesses against what it sees as unfair trade. For example, it recently threatened ultra-high tariffs on imported planes from Canada�s Bombardier, an aerospace company whose subsidies have put US manufacturer Boeing at a disadvantage, it says. The administration has also already been fairly vocal this year at the WTO on behalf of American exporters.