Why Britain Is Headed for a ‘Soft’ Brexit

With less than nine months until Britain is due to leave the European Union, the U.K. government finally has a plan. It aims to keep the biggest benefit of being part of the EU -- the ability to freely trade goods with the other 27 members -- and minimize the damage to businesses and the economy of leaving the bloc. Though she would be loath to use the term, Prime Minister Theresa May is signaling that the U.K. wants a "soft" form of Brexit, where Britain forges a very close relationship with the EU and gives up on the idea of regaining control over many of the rules and regulations governing commerce. Still, winning the EU’s support won’t be easy.

At the heart of the plan is a new U.K.-EU "free trade area" where Britain agrees to stick to EU rules for industrial goods -- such as safety standards -- along with regulations covering agriculture and food. There will also be a newfangled system of interlinked customs regimes that will rely on new technologies that haven’t yet been developed. The U.K.’s goal is simple: Keep goods from food to car parts flowing across the English Channel by avoiding customs checks and tariffs.