With a majority of 124, the House of Commons passed the Prime Minister’s Withdrawal Agreement Bill last week, setting the UK on course to leave the EU on 31 January. The legislation made it unlawful for the government to extend trade talks beyond the end of 2020.
After 3 years of parliamentary conflict, the Bill will now be passed onto the House of Lords with an expected completion date of the middle of January, it will then be over to the European Parliament to approve. Trade talks are then expected to begin in late February or early March.
During the transition period, the UK will remain in the bloc’s customs union and single market until the end of 2020, with an option to stay within those arrangements for a further 2 years, however the PM has ruled this out saying that he “will not take this option” claiming that there is ample time to reach a comprehensive deal.
All roads will lead to Wednesday 1 July where both sides must have reached an agreement to prolong the transition period, if a deal hasn’t been approved the country will face running out of time and will be forced to leave the Union with no deal.
This will cause the country major disruption to the economy, with tariffs and quantity restrictions being immediately applied to goods being sold into the EU market.
To find out how you can prepare your business by visiting our ‘Is your Business Brexit Ready’ webpage or contact our dedicated International Trade specialists on 01905 673613