UK: Orderly exit from the EU

After 18 months’ negotiations, UK and EU officials finally reached agreement on the text – all 585 pages of it – of a draft Withdrawal Agreement and if ratified by both sides, this dense legal document would serve as the rulebook underpinning an orderly exit from the EU on 29 March 2019, explains the research team at The Royal Bank of Scotland.

Key Quotes

“Alongside a c£39bn financial settlement and guarantees for citizens’ rights to live and work unimpeded, it provides for a 21 month transition period during which the UK would remain a member of the EU in all but name and voting rights.”

“Freedom of movement of goods, services, capital and people, along with all EU law, would continue until at least December 2020, giving businesses short-term certainty whilst an agreement on future relations is thrashed-out. In the event that no agreement on future relations is reached by 2020, the transition may be extended and/or a backstop arrangement for avoiding a hard border in Ireland would establish a single UK-EU customs territory covering all goods, with the exception of fish – binding the UK close to the EU for years to come.”

“To come into effect, the Withdrawal Agreement must be approved by the UK Parliament and a majority of EU member states. The EU side looks likely to give the go-ahead at a special European Council summit on 25th November, whilst the UK government is expected to schedule a Parliamentary vote in mid-December.”

“Although there are real doubts around whether MPs will support the Withdrawal Agreement, rejection would not make ‘no deal’ Brexit inevitable. In the event of defeat, government may well call a second vote, hopeful that added pressure from financial markets is enough to get the Agreement over the line. Meanwhile, MPs are likely to attempt to instruct government to request an extension to the Article 50 period to allow a common position to emerge.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.