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Brexit – latest news

Background

  • On the 29th March 2017, the UK formally notified the EU of their intention to leave the European Union in accordance with Article 50 of the Treaty of the European Union.
  • The Brexit Withdrawal Agreement published on 14th November 2018 proposes an agreement on the process of withdrawal by the UK and was agreed with the EU27 Member States and Teresa May as a result of many Brexit negotiations.
  • The Agreement provides for a transitional period post Brexit until 30 December 2020 but can be extended by mutual consent.
  • It is intended that the transitional period will provide for the negotiation of new trade deals and allow for time for businesses to adjust to Brexit terms.
  • However, the Agreement faces much challenge at UK parliament, UK Parliament must vote to ratify this agreement or alternative negotiations agreed with the EU.
  • On 22nd March, the EU agreed a two-month extension with Teresa May subject to UK Parliament agreement by end of this week on the existing Brexit agreement.
  • As of 25th March, UK Parliament had indicated they would not approve the current Brexit agreement and took the unprecedented steps of taking control on votes for next steps for Brexit in an effort to address the impasse.
  • Without parliamentary agreement, the UK is set to return to the EU by 12th April 2019 with an alternative plan or a “No-Deal” Brexit will be invoked. While the debate continues, both the EU and UK continue their preparations for a “No-Deal” Brexit scenario.

Impact

  • A “No-Deal” Scenario results in no transitional period during Exit by which consumers, businesses and public bodies would have to respond immediately to the changes as a result of leaving the EU.
  • There are significant impacts to a situation of the UK leaving without agreement in particular, political, trade, people and financial. The consequences being so great that neither party wants this outcome however, time is moving quickly and unless further negotiations between all parties can bring forward a solution and agreement, the UK is set to sever ties with the EU on March 29th.
  • Several transitional arrangements and MoUs have been put in place to support continued marketing in a No Deal scenario, these are reflected within the Regulatory Calendar.  

Timeline

  • 12th April 2019 – The UK set to return to Brussels with an alternative Plan if no agreement is reached on current Arrangements. If no alternative plan can be agreed upon, it is likely that a “No-Deal” Brexit will be invoked.
  • 22nd May Brexit extension expires.