The UK government published an advisory notice, in which it includes an advice on contingency planning for a ‘no deal’ Brexit outcome. However, UK said that a ‘no deal’ scenario remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.
What a ‘no deal’ scenario means
While progress has been made for a positive deal, until both the UK and the European Union sign a Withdrawal Agreement which is ratified by the UK Parliament and the European Parliament, there remains a possibility that UK may leave the EU without a deal in March 2019.
[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]
The UK triggered Article 50 of the Treaty of the European Union on 29 March 2017. The UK has now two years to negotiate a Withdrawal Agreement and framework for a future relationship with the EU before the point of the UK’s exit from the EU at 11pm GMT on 29 March 2019.
A ‘no deal’ scenario is one where the UK leaves the EU and becomes a third country on 29 March 2019 without a Withdrawal Agreement and framework for a future relationship in place between the UK and the EU.
In a ‘no deal’ scenario there would therefore be no agreement to apply any of the elements of the Withdrawal Agreement described above. The UK is therefore preparing for a scenario where there is no UK-EU agreement in place on exit day.
UK has already brought forward legislation that takes account of different scenarios. Namely, the Haulage Permits and Trailer Registration Act 2018, gives the UK the powers it needs to support British hauliers to continue operating internationally after exiting the EU.
In addition, UK’s Parliament is already scrutinising the Taxation (Cross-border Trade) Bill and the Trade Bill, which will ensure we have functioning customs and trade regimes regardless of the outcomes of the negotiations.
What is important however, is the fact that UK reassured businesses that, even in a ‘no deal’ scenario in March 2019, it will seek to do what it can to make the transition as smooth as possible and allow time to make significant changes.
Commenting on this development, BPA said that:
Today’s papers underlines the implications of a ‘no deal’, in terms of trading arrangements at ports. While it is sensible that the Government considers all outcomes we are hopeful that both sides will want to ensure that ports are free flowing on day one.
In addition, leaving the EU Customs Union and Single Market means that without some form of agreement goods travelling to and from Europe will be subject to new authorisations and other requirements as of March 2019, BPA concluded.
