Brexit Preparations: UK Parliament Says NO! Now What?

 In Brexit

The UK Parliament has said NO loud and clear to the deal that Theresa May negotiated with the EU. She now has to have cross-party talks to see how the deal needs to be renegotiated with the EU to get it approved a majority. She then has to go back to the EU to renegotiate the deal. And the EU has already said: Take it or leave it”. Either way she has to have a Plan B to present to the EU before January 22nd.

May also survived a vote of no-confidence, which indicates the majority of parliament still believes she can lead the UK to a solution for Brexit.

Both the EU, as well as its member states want a smooth Brexit, with a deal. Or no Brexit at all. An extension of the March deadline seems inevitable.

The question now (still) is, what will happen next? There are several options.

No Brexit, No Worries

The chances are low, but it is still an option, or actually two. The first option: May could withdraw the Brexit and tell the EU that the UK will remain part of the EU. But she won’t, as she has already stated. The second option: May could hold a new referendum, which could results in the majority voting for remaining in the EU. But she won’t do that as well, she said.

If this happens everything will remain as it is now, and no extra measures need to be taken for importing or exporting goods to and from the UK.

Brexit With a Deal

A Brexit with a deal will mean that the UK will leave the EU. Again, there are two options.

The first option: the UK will remain in the customs union, like Norway and Switzerland. There will be implications in terms of customs requirements, procedures, and documents. What these changes are will depend on the specifics of the agreement, which are not known now. Import and export documents may not be necessary, but there could be new transit documents. This will have the lowest impact on importing and exporting to and from the UK.

The second option: the UK will leave both the EU and the customs union. This means that there will be import and export documents needed when importing and exporting goods to and from the UK. The specifics will depend on the trade agreements the UK closes with countries. This will have a large impact on importing and exporting to and from the UK.

The first period will be a transition period, where the UK will remain in the customs union temporarily. There are several reasons for this, with the main one being to solve the issue of the border between the UK and Ireland.

Brexit With NO Deal

This will have by far the biggest impact on companies exporting or importing to or from the UK. A no deal Brexit will mean that there will be no transition period. The effects of the Brexit will be immediate. That also means that the border with Ireland will become an external EU border immediately. Both the EU and the UK are not prepared for that.

Get Ready, It’s Real!

Whether May gets an extension of the March 29 deadline or not, and whether the UK leaves the EU with or without a deal, companies importing or exporting goods to and from the UK should prepare themselves for the upcoming changes. You either need the people and the knowledge to handle all the additional paperwork and adhere to all the new rules and procedures, or you should make sure you hire external experts to make sure your business will run as smoothly after the Brexit as it did before.

Any questions? Contact us. We are happy to give you the answers.

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