Preparing for a ‘No Deal’ Brexit

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You may be fed up with all the Brexit talk, but as a business owner you need to be preparing for a worst case scenario which is that the UK leaves the EU on 29th March 2019 with no deal. What does that mean for you? Well, here are some key pointers and things to check now:

What will happen?

The UK will still leave the EU under Article 50, but with no agreement to govern the terms of withdrawal, and with no transition period.

Which laws will apply?

EU law will suddenly stop applying to the UK at 11.00 pm (UK time) on 29 March 2019. Whilst some EU laws will continue to apply by virtue of having been adopted into our law,  if any require reciprocity from the EU or depend on on the actions of individual EU member states, or EU institutions, agencies, enforcement bodies, systems or other EU resources, then we are on our own!

How will UK-EU trade in goods and services be affected?

The UK will no longer be part of the EU’s single market and customs union, and the four freedoms (the free movement of people, goods, services and capital) will no longer apply. There will no longer be mutual recognition of professional qualifications and regulatory frameworks. UK-EU trade will take place under the EU rules that apply to non-EEA countries, and any applicable national laws and national practices of member states, with the World Trade Organization (WTO) rules and WTO schedules setting the baseline for access.

What will happen at UK-EU borders ?

A customs and regulatory border would arise between the UK and the EU (which would also mean a customs and regulatory border between Northern Ireland and the Republic of Ireland). This in turn can mean:

  1. Border controls and possible delays
  2. Extra customs procedures and duties for imports and exports

Will transfers of data be affected?

Under the General Data Protection Regulation, the UK will become a “third country” which means that EU businesses transferring personal data to the UK can only do so if an adequate level of protection is guaranteed. In most cases this will mean both parties signing up to an agreement setting out the ‘model clauses’. The ICO has useful tools to help you ( See link below)

What are the rights of UK citizens in the EU and EU citizens in the UK?

Free movement and other rights derived from EU law will end. The rights of UK citizens in the EU will depend on the approaches taken by the EU and its member states, while the rights of EU citizens in the UK will depend on the government’s approach.

Steps to take NOW:

Have a thorough understanding of the commercial implications of Brexit for your business.  Here are some key things to consider:

  1. location of your business;
  2. its regulatory environment;
  3. the location of your key customers and suppliers;
  4. the make-up of your workforce- do they commute regularly in and out of the EU?
  5. the flow of personal data; and
  6. whether you might be in breach of any contracts as a result of Brexit e.g.you are committed to tight delivery deadlines which may be broken as a result of border delays.

Other sources of help: