Brexit

On 29 March 2017, more than nine months after the June 2016 referendum, the British Government formally notified the European Council of the United Kingdom's intention to withdraw from the European Union. In accordance with the provisions of Article 50 of the Treaty on European Union, the treaties will cease to apply to it from the date of entry into force of the withdrawal agreement or, failing that, two years after notification, i.e. 29 March 2019. The European Council may decide unanimously, in agreement with the State concerned, to extend this period.

Negotiations began on 19 June 2017 and initially focused solely on the conditions under which the United Kingdom would leave the Union. Significant progress has been made on budgetary issues and the treatment of nationals of both sides with a transition period to ensure that the United Kingdom remains de facto in the European Union after its institutional exit date of 29 March 2019. A draft withdrawal agreement on these points has been agreed to by both parties.

At this stage, the issue of border management between Northern Ireland and Ireland has yet to be resolved and is affecting the pace of the negotiations. However, in December 2017, the European Council agreed that the negotiations should enter their second phase, which concerns future relationships. This phase started with difficulty given the tensions within the British government itself about the nature of the future relationship.

At present, although a preferential relationship will most likely be established with the United Kingdom at the end of the transition period, it is understood that the United Kingdom will be a third country with respect to the European Union. Given these circumstances, businesses must continue to put in place action plans to manage the consequences of this situation in their best interests. In the future, it is the terms of the bilateral agreement which will govern relations with the United Kingdom, particularly as regards trade in goods, services, the right of establishment, human resources, taxation (VAT, groups), intellectual property etc. In certain cases, these terms may be similar to current conditions, but the United Kingdom will no longer be part of the EU internal market.

With its multidisciplinary approach, which is perfectly suited to a context as complex as Brexit, Fidal is providing its clients with relevant information on the progress of the ongoing negotiation process through its dedicated teams.

Because Brexit has an impact on the short, medium and long term, we have designed a gradual approach that includes a phase of analysis, identification of the risks/opportunities and implementation of strategic and operational responses adapted to the challenges you are facing.