After the UK elections, more has become clear in the Brexit timeline
The next step for the Boris Johnson government is to get the Brexit deal approved at the Lower House. With the big victories after the elections, that seems the least bump at the moment. That could be more difficult in the House of Lords where these elections have not changed the situation.
After the UK it’s up to the EU. A simple majority is sufficient during the vote. If these steps have been taken the Brexit becomes a reality on February 1st. An agreed transition period starts on this date in which the UK remains a virtual EU member, thus also remains part of the internal market. The only thing that changes overnight is that the British no longer have a voice in Brussels. So there will be no changes for logistics.
Negotiations on a trade agreement between the UK and the EU start in February. The hope is that this is settled before 31.12.2020. EU negotiations with countries such as Canada and South Korea take five up to nine years. There is no time now, because the transition period already runs on December 31st 2020.
There might be another escape. Halfway through the new year is the last moment to decide on an extension of the transitional period for one or two years. Almost all involved see this as inevitable, because a comprehensive trade agreement is not to be expected within 11 months. However, Johnson has always said that he does not like such an extension. December 31st , 2020 could be a new, tough « no deal » Brexit date. If Johnson persists in his refusal to extend the transition phase. And if there is no trade agreement with the EU at the end of next year, then the UK will be taken out of the internal market on January 1, 2021 and without any agreements. In that case the rules of the World Trade Organization (WTO) apply. This inevitably leads to border controls, tariffs and other trade barriers.
Nothing will change during transport to and from the UK until December 31st 2020. So no customs clearance or other customs declarations. The most important is the possible postponement date by which the deadline becomes June 2020.
With no delay it becomes:
– in case of an agreement; a soft Brexit.
– in case of no agreement; a hard Brexit follows
We will report new developments via the website. If there are any questions in the meantime, please contact us.