Brexit round-up – 28/09/18

Jeremy Corbyn says no-deal would be a “national disaster”

Prior to a meeting with the European Union’s chief negotiator, Jeremy Corbyn has warned that a no-deal Brexit would be a “national disaster.” Mr Corbyn’s comments follow the Labour Party Conference to which he said Labour would oppose a no-deal outcome and vote against any deal based on Chequers, as it would be extremely unlikely to meet the party’s six tests. However, he confirmed that if Theresa May produced a deal that “includes a customs union and no hard border in Ireland” that protects jobs, people’s rights at work and environmental and consumer standards, it will receive his support.

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European Union Committee publishes ‘the customs challenge’ report

The EU External Affairs Sub-Committee has published a report on the Government’s Chequers proposal for a Facilitated Customs Arrangement (FCA) and the customs challenges. In the case of a ‘no-deal’, the report finds that trading with the EU under World Trade Organisation (WTO) rules would be disruptive and costly. Up to 245,000 businesses currently trade exclusively with the EU and would need to gain expertise in complex customs procedures. The report also highlights that the Government has not yet made clear how goods under the FCA could be reliably tracked, and are yet to test the repayment mechanism which will take several years to be developed and implemented.

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Theresa May issues statement following Salzburg Summit

Following an EU summit in Salzburg on 19 and 20 September 2018, Theresa May has warned that the Brexit negotiations are “at an impasse” and there will be no progress until the EU treats her proposals seriously. Mrs May has also said that the two sides remain “a long way” apart from the crucial issues of how the UK will trade with the EU after Brexit and the future of the border between Northern Ireland and the Republic of Ireland. The next few weeks will be crucial if these differences are to be resolved. The two sides are expected to fulfil their shared aim of an orderly Brexit and outline an agreement on trade, security and other issues.

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British Chambers of Commerce (BCC) comments on latest technical notices

On 24 September 2018 the Government published a further 24 technical notices covering areas such as aviation safety, flights, vehicle insurance, farming, patents and trademarks, importing and exporting and product labelling. In response to the publication, Mike Spicer, Director of Research and Economics at the BCC said: “If the EU and UK fail to reach a withdrawal agreement, businesses will urgently need comprehensive answers to the many outstanding questions on business continuity” and while some businesses will be reassured by the latest notices, such as those relating to IP protection, “the admission that loss of market access is a possibility for others will be deeply unsettling to those affected.”

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Final trade deal must be imminent, German chancellor warns 

At a conference in Berlin, the Chancellor of Germany Angela Merkel has warned the British Government that the 21-month Brexit transition period will not be sufficient if the terms of a future trade-deal with the UK are not finalised within the next eight weeks. EU leaders fear if the parameters and limitations of the future deal with the UK are not made clear now, then negotiations after Brexit will be prolonged and disorganised. Robert Azevedo, The Director General of the WTO said: “clearly there will be an impact, and it’s not going to be a good one” but that the role of the WTO would be to “minimise the negative effects that this is going to have.”

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If you have any questions about any of the issues which are raised, or would like to discuss your own organisation’s options in the lead-up to Brexit, please do not hesitate to get in touch.