But experts question whether the U.K. can
hammer out a similar deal by the end of next
year. It took Canada more than five years to
negotiate its agreement with the EU, plus two
more for it to be approved by each EU country.
Johnson says he won’t ask for an extension and
will introduce legislation to rule one out, leaving
open the possibility that Britain could still leave
the EU without a trade deal in a little over a year.
Economists forecast this would have tough
consequences for jobs and investment.
“The most important thing to remember is that
Brexit may get done from a legal point of view
on Jan. 31, but that does not get Brexit done
from an economic point of view,” Portes said.
“British businesses are going to have to face the
fact that uncertainty is going to continue.’’
That has weighed on financial markets.
The FTSE 100, Britain’s benchmark stock index,
has gained 4% since last week’s election, beating
the S&P 500 in the U.S. and Germany’s DAX. But
the long-term picture is less positive. While the
FTSE 100 has risen 14% since Britain voted to
leave the EU in June 2016, the S&P 500 jumped
51% in the same period and the DAX 31%.
The pound jumped briefly after the election,
adding to a rally that began in August on
optimism Johnson would secure a deal with the
EU. The currency is still down almost 10% since
the referendum.
“Anyone hoping that the election would
draw a line under Brexit was sadly mistaken,′′
Craig Erlam, senior analyst at market research
firm Oanda.com, said in a note to investors
headlined ``Christmas Gift or Exquisitely
Wrapped Lump of Coal?