REGULATION Brexit June 2019
The news of a further extension to notice given under Article 50 of the Lisbon Treaty, until 31 October 2019 must have come as a welcome but temporary respite to the UK Parliament’s deliberations on the withdrawal agreement with the European Union.
However the extension comes at a cost. Not only in terms of the United Kingdom’s participation in the forthcoming European elections held on 23 May, but also in terms of Prime Minister May’s political reputation.
The European elections will be symbolic if the United Kingdom intends to exit the European Union on 31 October 2019 having agreed the terms of withdrawal through both the House of Commons and House of Lords.
More telling is the statement from Michael Gove, Secretary of State for the UK Government’s Department of the Environment, Food and Rural Affairs (Defra) which intimated that a ‘no deal’ Brexit was firmly off the table.
The UK Government’s stated aim has always been to leave the European Union with a deal, both the terms of withdrawal as well as the terms of any future trading relationship. So the statement from Michael Gove should come as no surprise. What is more of a surprise is that he was one of the key figures in the Brexit camp at the time of the UK referendum on the issue of membership of the European Union in 2016. For Michael Gove to come out with the statement now shows how strongly the Government is committed to concluding a deal with the European Union which provides more certainty to British business if access to the customs union and single market for the goods of the lubricants industry can be guaranteed in future.
David Wright, UKLA Director General
The current UK Government position is that the 31 October 2019 provides a backstop to the current negotiations and agreement. ‘Having failed to get the deal through Parliament up to the 12 April’, in Defra’s words, the UK can leave with a deal if it is agreed before the end of October. And that is a big ‘if’.
The planned transition period which was due to take effect from the 29 March to the 31 December 2020 will not be carried forward in the same way. Although a limited amount of extension is possible of up to two years if agreed by both the UK and the EU before July 2020.
Currently the UK Government is concluding its advice to businesses about ‘no deal’ preparations which seem to become more unlikely with every week that passes. Secondary legislation called Statutory Instruments have already been placed before UK Parliament setting out the UK REACH regulation in the absence of continued access to the EU REACH regulation, and the services of the European Chemicals Agency ECHA, under an Associate Membership arrangement hoped for by Prime Minster May.
The Prime Minster is currently leading cross party talks to agree the terms of withdrawal in a deal she hopes can command the confidence of the majority of the House of Commons. Whether this deal is dependent on a second referendum being put to the British people on the terms of withdrawal, remains to be seen.
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LUBE MAGAZINE NO.148 DECEMBER 2018 LUBE MAGAZINE NO.151 JUNE 2019
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