Risk of a “No Deal” Brexit Moves to January 31, 2020
On 28 October, the EU Commission published its decision to accept the request from the UK to further extend Article 50 until 31 January 2020. U.K. withdrawal from the E.U. can take place earlier on 1 December 2019 or 1 January 2020, if the withdrawal agreement is ratified by both parties.
The latest extension moves the risk for a ‘no deal’ Brexit happening to 31 January 2020. Companies are therefore still advised to prepare for a ‘no deal’ Brexit, as it is still a possibility with direct consequences to businesses.
When the UK leaves the EU, it also leaves the European Economic Area (EEA), the Customs Union and the FTAs (Free Trade Agreement) that Europe has in place with third countries. This will have consequences on customs, tariffs, movement of people, and regulations.
It is still unclear which scenario will apply – a ‘no deal’ Brexit or a Brexit with a Withdrawal Agreement. Although, companies are reminded that ‘no deal’ is the only default possible outcome therefore companies should prepare for the worst-case scenario.
For more details, inluding the difference between a ‘no deal’ or Withdrawal Agreement sceanrio, we would direct members to the valuable resources available on the U.K. Cosmetic, Toiletry, and Perfumery Association site at: https://www.ctpa.org.uk/no-deal-help