BREXIT BULLETIN

31 January 2020

 

As the UK leaves the EU, this ADS Brexit Bulletin provides analysis on what this means for our sectors and looks ahead to the next stage of negotiations

 

Headlines

  • As of 23.00 tonight the UK will no longer be a member of the European Union and will enter a transition period lasting until 31 December 2020.
  • ‘Business as usual’ as the UK enters the transition period with no changes to the terms for trading with the EU or the rest of the world.
  • ADS is focusing on the next stage of negotiations and priorities for the UK’s future relationship with the EU.

 

What happens today?

  • Once the UK leaves the EU tonight, it moves into a transition period with the EU which will last until 31 December 2020. During this transition period, the current rules on trade, travel, and business for the UK and EU will continue to apply.
  • The UK will no longer have any representatives within EU institutions or a vote on future EU laws or regulations.

 

What does this mean?

  • Given the transition period, the Government has outlined that “there will be no changes to the terms for trading with the EU or the rest of the world unless the rules change for the whole of the EU. This means EU rules for customs, VAT and excise will continue to apply to the movement of goods and trade for this limited time. There will be no new customs procedures at present. 
  • A more significant moment will be on 1 January 2021, the UK’s first day outside EU rules after the transition period. Under the Brexit withdrawal agreement, that day could be delayed until 2022 or 2023, but the Prime Minister has already ruled out any extension of the transition period. Should an extension be desired, the UK must notify the EU before 30 June 2020.
  • Over the coming weeks, the UK Government will formally begin negotiations with the EU on the future relationship. The Prime Minister will be outlining his priorities over the coming days, with a speech on Monday 3 February which will be seen as the UK marking the start of this second phase.
  • ADS will continue to work with industry and Government during the transition period to make sure the UK secures the best possible future relationship with the EU for our sectors.

 

What you can do to prepare?

  • ADS has today updated its Brexit Hub with new information for members to help them prepare for changes that may come at the end of the transition period. 
  • This includes specific information for aerospace, defence and security companies with suggested actions businesses can take now to ensure they are ready for any negotiated outcome on 1 January 2021.

 

    • Maintaining aviation safety through the European Aviation Safety Agency (EASA)
    • Ensuring supply chain continuity in relation to chemical regulations
    • A customs agreement that minimises additional costs for just-in-time supply chains
    • A comprehensive defence and security partnership
    • Inclusion in collaborative European Space and R&D programmes
    • Access to skilled labour to maintain the UK’s global competitiveness

 

Useful resources on Brexit

The Brexit Hub on our website has been updated today to reflect the UK entering the transition period and will be updated throughout the next phase of negotiations to help members prepare.  We will aim to cut through the political noise and provide a single authoritative source of information on the impact of Brexit on the aerospace, defence, security and space sectors.

 

You can access the Hub here to guide you through the current state of play on Brexit.

 

Other useful resources: