Business Update on Brexit: The Advantage of a Plan Compared to No Plan
As the UK prepares to leave the European Union, here's a summary of the key events and current status of the Brexit Withdrawal Agreement.
On the 13th of November, 2018, the UK and EU agreed on a draft Withdrawal Agreement. This lengthy document, totalling 585 pages, was supported by the UK Prime Minister Theresa May's government, but faced significant opposition within Parliament.
The EU leaders' approval for the deal came on the 25th of November, 2018, a key step towards EU-wide ratification. The UK Parliament was initially expected to vote on the deal in December, but the vote was delayed due to anticipated defeat and to allow more negotiation time.
The EU Parliament, following the member states’ approval, is expected to vote on the Withdrawal Agreement in early 2019. However, the UK's ratification process has been delayed, with subsequent votes in Parliament held in January, March, and March 29, 2019, but the deal was rejected each time by large margins.
The UK formally ratified the Withdrawal Agreement later, with Royal Assent given on the 23rd of January, 2020, prior to the UK's official withdrawal on the 31st of January, 2020.
In order to receive updates on Brexit developments in a legal and business context, you can register for the Brexit Business Brief, a regular newsletter. The Centre for European Reform has also published a note on five possible outcomes if the government loses the meaningful vote.
If the government wins the meaningful vote, "no deal" becomes much less likely. However, the European Commission has published a Contingency Action Plan for no deal, just in case. Further no deal information for business is expected from the UK government in the second half of November, 2018.
The Withdrawal Agreement, while lengthy at 56 pages, is summarized in a UK government Explainer. The European Commission has also published papers on What is in the Withdrawal Agreement and on the Protocol on Ireland and Northern Ireland.
The Outline of the Political Declaration setting out the Framework for the Future Relationship is 7 pages long. The UK government needs to pass the Withdrawal Agreement Act into law by before 29th of March, 2019, which may offer a last-ditch opportunity for those opposed to the deal to raise obstacles.
As of now, with 134 days to go before the UK leaves the Union, this is the only plan available. Various EU players have made clear their view that "this is it".
[[1] Source: BBC News, "Brexit: What happens next?", last updated on 29th March, 2019. Accessed on 17th November, 2020. Available at: www.bbc.com/news/uk-politics-45402228]
[[3] Source: GOV.UK, "Brexit: Timeline", last updated on 23rd January, 2020. Accessed on 17th November, 2020. Available at: www.gov.uk/guidance/brexit-timeline]
Democratic processes in the UK have been focused on the Brexit Withdrawal Agreement, with significant political debate occurring since its initial draft on November 13, 2018. This negotiation has been both in the realm of general-news and domestic politics, with the UK Parliament holding multiple votes on the agreement, resulting in repeated rejections. Despite the repeated rejections, the UK officially ratified the Withdrawal Agreement on January 23, 2020, setting the stage for the UK's departure from the European Union on January 31, 2020.
