Following the referendum held in June 2016, the UK government notified the European Council in March 2017 of its intention to withdraw, officially triggering a two-year negotiating period stipulated under the EU Treaties (article 50 TEU).
The negotiations opened on 19 June 2017 in Brussels, headed by the EU’s Chief Brexit Negotiator, Michel Barnier, and the UK Secretary of State for Exiting the European Union, David Davis MP, and aim to be ready for ratification by October 2018. The first phase of the negotiations covering withdrawal issues such the financial settlement, citizens’ rights and the Irish border officially concluded on 15 December 2017 following the European Council’s decision that ‘sufficient progress’ had been reached.
At the December European Council, EU leaders also adopted guidelines on progress to phase II of the negotiations, which will focus on transitional arrangements and the future trade relationship. The EU is clear that a transition period should be short, ‘precisely time limited’, and based upon UK acceptance of all EU rules and regulations, which in practice means continued UK participation in the Single Market (including free movement) and the EU Customs Union. The next steps will see the UK and EU27 discuss the principle terms of a transition agreement in Q1 2018, with preliminary and preparatory discussions on the future trade relationship earmarked, once additional guidelines have been published, for March 2018.
Businesses for whom the UK is an important export market, or UK businesses that trade with the rest of the EU, therefore need to prepare for all scenarios, including the possibility of no agreement being reached and only WTO rules applying. Positions on the terms of the transition and the contours of a future trade agreement are not yet wholly entrenched and the next few months offer a key window of opportunity for businesses to make their views, concerns and preferences known to decision makers in London, Brussels and other EU capitals.
How Fipra can help
Fipra can help firms assess potential risks, plan for the different scenarios that may arise, and engage with policy makers to ensure that their concerns are heard and understood. Our Brexit practice draws on the expertise of our senior advisers, with experience of both the EU institutions and complex trade negotiations.
Fipra’s Brexit team includes Lucinda Creighton (former Minister of European Affairs in Ireland, including during the 2013 Irish EU Presidency), Juan Prat y Coll (a former Director-General for External Affairs within the European Commission and former Spanish Ambassador to Italy and the Netherlands), Peter Chase (former Vice President, Europe for the US Chamber of Commerce, with responsibility for negotiations on the Transatlantic Trade and Investment Partnership) and Dirk Hudig, the Head of our Brussels office and formerly Secretary General of UNICE (now BusinessEurope).
With offices in Brussels, London and every EU Member State, Fipra is in a unique position to draw on political insight and analysis from across our network, providing up-to-date assessments of the direction in which negotiations are moving and advice on next steps. To read more about our Brexit team please refer to our Brexit Leaflet and for more information please call Daniel Furby on +32 2 613 2828 or contact: email@example.com