As we come to the end of another tumultuous year of Brexit negotiations, Norfolk Chamber’s International Trade Manager, Julie Austin outlines the Brexit story so far…
End of ‘Phase 1’ of the negotiations
The week commencing 4 December was full of political ups and downs, with everyone waiting with baited breath for the outcome of the last-minute negotiations that would conclude ‘phase 1’ of the Article 50 talks between the UK and the EU. Although it had seemed that the ‘divorce bill’ and citizens’ rights would be the most contentious issues, the question of the border between the Republic of Ireland and Northern Ireland became the discussion that risked derailing the talks.
Ultimately, a form of words was chosen that suited all parties: The Republic of Ireland Government, the DUP, the Commission and Eurosceptic Conservatives. The practicalities of the border question are still unresolved, but what that week’s debate did highlight is just how contentious – and critical – the question of regulatory alignment with the EU will be in 2018.
On the other issues, the UK has, as expected, agreed to a more significant financial contribution; on citizens’ rights, there was a much-needed confirmation that the rights of UK citizens residing in the EU before 29 March 2019, and EU citizens residing in the UK before that date, will be protected.
What happens next?
It is important that the joint statement indicated the need for a start to talks on the transitional arrangement. The British Chambers of Commerce, together with the Chamber network will continue pressing for the transition to be confirmed as soon as possible: a positive signal, a stronger commitment, early in 2018, is necessary for business certainty.
Our expectation is that this will form the bulk of the discussions in the first quarter of next year, prior to the next EU Council Summit on 22-23 March 2018. Then, slowly but (hopefully) steadily, talks on the future trade relationship will begin. However, we should not get too excited yet: these are not yet the trade talks – but are rather the talks about the talks (agreeing on a framework relationship, with details to be ironed out later).
And the Cabinet will finally need to debate and take a collective stance on the kind of regulatory relationship it would like to see with the EU going forward – with the backdrop of various sector groups (such as for pharmaceuticals and aviation), calling for close regulatory alignment and full participation in various agencies.
What the Chamber network is focusing on now
In 2018, the BCC and Chamber network’s approach will remain pragmatic, practical and apolitical. In addition to pressing for a transitional arrangement deal as soon as possible (the BCC has already joined forces with national Chambers of Commerce from Ireland, Germany, France, Denmark, the Netherlands and Belgium to do just that), we will be exploring potential options for regulatory alignment/divergence with the EU, stressing the importance of maintaining existing market access benefits via the existing EU Free Trade Agreements (which is not as done a deal as it may seem), as well as staying closely engaged in consultation on the UK’s future immigration system.
For any questions about Brexit and the potential impact on your business, our International Trade Team is here to help. Please contact Julie Austin on Tel: 01603 729 706 or email: [email protected]
