Brexit is a fact, the transition period has started

In June 2016, a referendum was held in the United Kingdom of which the outcome would change the landscape of the European Union forever. During this referendum, 52% voted in favour of the United Kingdom leaving the EU. The following spring, a formal announcement was made by the UK government, announcing the country’s withdrawal. What followed were several years of intense negotiations about how to facilitate the United Kingdom’s impending departure. Now, after several delays, the ‘Brexit’ is a fact.

As of January 31st, 2020, the United Kingdom of Great Britain and Northern Ireland (England, Scotland, Wales and Northern Ireland) has officially left the European Union. Just a few days before, on January 29th, the European Parliament voted in favour of the so-called Withdrawal Agreement, giving the Brexit the EU stamp of approval.

Transition period dependent on trade agreement

Right now, we find ourselves in a transition period. This means that while the EU and the UK negotiate on a future trade agreement, nearly everything stays the same. For example, this means that during the transition period, you won’t have to fill out extra papers when travelling between the EU and the UK nor will you be charged customs duties when you sell or buy goods. 

How the situation will look like once the transition period has ended, depends on the trade agreement that is being negotiated at the moment. The same goes for the duration of the transition period. If the negotiations between the EU and the UK are successful and a new trade agreement is signed by the end of this year, the transition period will end on December 31st, 2021. If not, the transition period could be extended for a year or even two.

Want to know more about the Brexit?

We will, of course, keep you updated on any new developments regarding the Brexit. If you have any specific questions, please don’t hesitate to contact me.

Klik hier voor de Nederlandse versie van het artikel.

Originally this article was written by Katja Heede (no longer employed at RWV Advocaten)

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