Brexit Draft Deal In Short

by Insights Marketing | Nov 16, 2018

Chaos, resignations & votes of no confidence all seem to be a part of British politics since the Brexit vote back in 2016. So, after another day of the same, what is the Brexit draft deal about. We understand the following:

Transition

Britain exits the EU on Friday, March 29, 2019, and will then cease to be involved in EU decision-making. The draft agreement suggests that the UK will continue in the single market and under EU laws until December 2020, as they continue to finalise a new trade deal. Effectively, it buys more time to continue negotiations. If a deal still isn’t reached then the two parties can extend this arrangement before July 2020.

Customs Union

The draft deal commits both parties to a backstop solution, which means a single customs territory. This would remove all tariffs and covers all goods except fishery products. The UK would harmonise its customs territory and policies with the EU’s and ensure that UK businesses have level playing fields for taxes and duties with EU competitors.

The UK will not be allowed to lower standards on key regulations such as environmental and labour, which include health and safety standards and working hours. The UK will be bound by EU trade agreements.

Once the backstop solution becomes effective, it can only be undone with the agreement of both parties, preventing the UK from exiting the customs union without the EU’s permission.

Northern Ireland

There will be no hard border between Northern Ireland and the Republic of Ireland, at least not in the short term.

Freedom of Movement

The three million EU citizens in the UK, and one million UK citizens living in the EU will be able to continue to live and work as they currently do. No visa formalities will be required of EU and UK nationals when crossing borders. Freedom of movement will be maintained until a final agreement is reached.

What’s Next

The UK Cabinet have agreed the draft deal, with some controversy. The deal needs to be agreed and confirmed at the EU Summit on 25 November before the difficult process starts of approving the agreement.

In December the UK Parliament will vote, if successful the EU parliament will vote, where a simple majority is required. Then the EU council will vote, where 20 countries representing 65% of the population must agree.

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