REGULATION
Brexit
Complications David Wright, UKLA Director General
For all the talk in the UK media over recent months about trade agreements and options for a proposed customs union, or customs partnership/arrangement with the European Union after the date of Brexit in March 2019, the simple truth is that trade negotiations have not yet begun.
Over recent months the UK press has been fixated with the size of any divorce settlement with the EU which is the agreement by which the UK will meet its future financial commitments, following which negotiations would move onto talk about a future trade relationship.
These negotiations fall into three distinct phases. The first withdrawal phase including the size of any divorce settlement will be concluded by March 2019, the date of exit. The second phase is a transitional phase lasting from March 2019 to December 2020 in which most of the divorce settlement payments would be made and during which negotiations would begin on the future long-term trading relationship with the EU which in turn becomes the final phase.
There isn’t enough time to finalise arrangements within the two year window set out in Article 16 of the Lisbon treaty before March 2019, hence the need for a transition phase of a further twenty-one months. A second added complication is that the EU would require the UK to ratify the terms of withdrawal through the UK Parliament first before all remaining 27 EU members ratified the agreement.
54 LUBE MAGAZINE NO.146 AUGUST 2018
The final complication is that the UK has five-year fixed term Parliaments with the last one held in June 2017. Can the existing Conservative-led minority government hold out for long enough to see through any final deal?
In July the cabinet met at the Prime Minister’s country residence to discuss a draft paper setting out the UK’s future position of alignment with EU regulations on goods but not services. Not everyone agreed and so following a spate of resignations the Government’s majority of 13 looks more fragile than at any time since the last election.
The draft paper tackles the issue that many UK businesses already trading with the EU want to see that trade continue in an unencumbered manner. Going it alone on product regulations invariably mean that UK exporters could face tariff and non-tariff barriers to trade which would hamper the free flow of goods.
The position on services is different. If London wishes to maintain its place as the financial capital of Europe post Brexit then the UK Government will have to adopt a flexible approach to regulation after 2019. The alternative risks little benefit for financial companies not relocating to Frankfurt if regulations both inside and outside the EU were harmonised.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64
