Brexit…What happens next?

Friday 31 January 2020 11.00pm will mark the first time in a generation that the UK will no longer be a member state of the European Union. After years of political turmoil and damage to the economy, the UK will begin procedures of negotiating post-Brexit relationships with EU countries.

Formal talks are likely to start in early March. David Frost, the Prime Minister’s chief Europe adviser, will lead trade negotiations with the EU on his behalf, at the head of a 40-person taskforce reporting into Downing Street.

The Prime Minister and his task force will have until the end of December to shape the UK’s future relationship with the European Union. Boris Johnson has said that the country will not take the option of extending the deadline as there is ample opportunity to negotiate a ‘favourable deal’.

He was also supported by Sajid Javid, who last week, in an interview with the Financial Times said:  “There will not be alignment, we will not be a rule taker, we will not be in the single market and we will not be in the customs union – and we will do this by the end of the year.”

During the transition period, the UK will remain in the bloc’s customs union and single market until the end of 2020. Both sides must have reached an agreement to prolong the transition period by 1 July, if a deal hasn’t been approved the country will face running out of time and will be forced to leave the Union without a 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.

In summary, it is not known what will happen after December 2020 where the first ever ex-member of the European Union will have to negotiate on a myriad of issues, all within 11 months. This presents potential issues for a number of businesses, which is why it is more important than ever that businesses prepare for all eventualities.

If you require any information on how to best prepare your business for any eventualities that may happen, visit our ‘is your business Brexit ready’ page or contact our team of Brexit Advisors on 01905 673613.