What to Expect From Brexit if the Withdrawal Agreement is passed before 31st January
The United Kingdom is scheduled to leave the European Union on January 31 2020.
To minimize the risk on your supply chain, your business should be aware of what’s likely to happen this year:
The UK Parliament will vote on the Withdrawal Agreement negotiated with the EU before January 31. If that passes, as it is likely to do, the UK leaves the EU and begins a transitional period for the next 11 months, until December 31st 2020.
That means there would be no immediate changes on trade agreements. The UK would begin negotiating a free trade agreement with the EU right away.
What would that agreement mean to you? It is not clear yet, but looking at the EU free trade deals with other countries, it is likely that customs declarations of some kind would be required regardless. The details will be part of the free trade negotiations.
If no free trade agreement is reached by the end of 2020, the UK could either ask for an extension to the Transitional Period, or the UK would leave with no agreement in place and that would result in the term you have likely heard by now, a “Hard Border.” Customs declarations would be required on all imports and exports
Either way, businesses should be prepared for customs declarations following the end of the Transitional Period on 31st December 2020.
For more information, visit www.agility.com/brexit