BREXIT ALERT: the transitional agreement was rejected by the British Parliament

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BREXIT ALERT: the transitional agreement was rejected by the British Parliament

On Tuesday, January 15, 2019, the British Parliament largely rejected the Brexit deal presented by first minister Theresa May.

As a reminder, this transition agreement was signed on November 14, 2018 between the European Council and the United Kingdom and has been approved by the other Member States. The transitional agreement provided for a transitional period until 31/12/2020 during which nothing would change either at the VAT level or at the customs level, since the United Kingdom could no longer sit in European bodies. The implementation of this agreement required an approval by the British Parliament, which was refused.

The rejection of this transition agreement makes the assumption of a “Hard Brexit” as of March 29, 2019 virtually inevitable.

From March 29, 2019, the United Kingdom would become a third country to the EU at 100%, like China for example. This would involve customs declarations, customs duties, import VAT, trade policy measures, no preferential origin, etc.

For detailed information on the real consequences of a “Hard Brexit”, we invite you to download our special Brexit white-paper.

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