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Bringing home the bacon

What's happening? Britain wins access to Mexico's pork markets and time is running out to find more truckers.

Proponents of Britain's post-Brexit drive for new global export markets can now claim to be bringing home the bacon — this time with Mexico. On Thursday, Environment Secretary George Eustice announced that the Latin American economy is now open to U.K. pork for the first time. The market is estimated to be worth £50 million ($69 million) to British producers over the first five years. U.K. International Trade Secretary Liz Truss said the deal with Mexico, which is a member of CPTPP, is an important step toward membership in that pact.

The U.K. is running out of time to find more truck drivers before isolated incidents at supermarkets and fast-food chains erupt into a deeper crisis that leaves businesses crippled by delivery delays and shortages.

The government and business are at loggerheads over a solution, and it's fueling the bitter debate over the Brexit divorce. Hauliers and retailers want European Union truck drivers added to a special visa program to make it easier to fill the estimated 100,000 shortfall in workers. But the government is refusing to budge, arguing that companies can lure staff with better wages. Businesses say hiring and training will take time, and there's a pool of skilled drivers on the European continent that can be tapped much faster. 

Post-Brexit relations move back into the spotlight this month ahead of the Sept. 30 deadline when grace periods covering goods between Great Britain and Northern Ireland are set to expire. In a note to clients, Eurasia Group's Mujtaba Rahman says that the EU will wait until the end of the month to present its response to the command paper on the Northern Ireland Protocol by David Frost, the British minister for EU affairs. That makes a further extension to the grace periods "almost inevitable," by Rahman's calculations.

As traders' confidence grows that the Bank of England will hike interest rates in the next year — far sooner than any tightening priced in for the European Central Bank — short-term funding costs in the U.K. are diverging from those in Europe. Money markets now see the first 15-basis-point rate increase in the U.K. in May 2022. 

Michel Barnier Photographer: Jasper Juinen/Bloomberg

We're not the only ones pondering life beyond Brexit. The EU's former chief negotiator with the U.K. announced he'll seek to represent the French Republican party in the upcoming presidential election. Still, despite being a lofty figure in the Brussels bubble, he's unknown to many in France.

Finally, London's financial districts are waking up. Pret A Manger sold the most coffees and sandwiches in the City of London and Canary Wharf last week since the pandemic began, indicating that thousands of bankers, asset managers and corporate lawyers are repopulating empty offices after months of working from home.

Lizzy Burden

We aim to keep you up to date on how the U.K. navigates the world after Brexit. Got tips or feedback? Email us at beyondbrexit@bloomberg.net

Chart of the Week

London has long been a city of extremes, but the pandemic has pulled the fortunes of British consumers in two directions, with those who are are growing wealthy on the value of their properties increasingly living near people who can barely get enough to eat. The average home in the capital costs more than half a million pounds, but more than a third of children live below the national poverty line. Lockdowns to control the virus have prompted homeowners to seek more space and access to outdoors, boosting prices in the suburbs and beyond. That's driving up the cost of living in less affluent areas, adding to the pinch on those on lower incomes.

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