1. Brexit and Trade Update Anastassia Beliakova Head of Trade Policy British Chambers of Commerce

2. Phase 1 over – what was agreed?
CITIZENS
UK citizens in the EU, and EU citizens in the UK, when residing before 29 March 2019, will have their rights protected
These citizens retain rights to be joined by family members
British judges must take EU court rulings into account on citizens’ rights disputes
FINANCIAL SETTLEMENT
Britain will keep paying into the EU's annual budgets for 2019 and 2020 as though it remained a full member of the bloc
Expected to be €50bn +

3. Phase 1 over – what was agreed?
IRELAND / NORTHERN IRELAND
Guarantee to avoid a hard border
UK hopes to fulfil this through its final trade deal with the EU, but if necessary will seek “specific solutions” to the unique situation in Ireland
If this fails, Britain pledges to maintain “full alignment” with those EU internal market and customs union rules
But…“the whole of the United Kingdom, including Northern Ireland, will leave the EU customs union and the EU single market”
No border between the island of Ireland and Great Britain

4. Transitional arrangement
Only one set of changes = membership of the EU in all but name during transition
To be confirmed in early 2018
PM indicated time-frame “of around 2 years”
European Parliament says “no longer than 3 years”

5. Future relationship: Key questions for 2018
Not EEA – and not ‘traditional’ FTA. What will this look like? How achievable is this?
How to manage regulatory divergence post-Brexit? Can there be a new body overseeing this?
To note: 2018 will be the year of talks about the trade talks – rather than the start of the trade talks themselves

6. Future relationship: Specific business-critical questions
IP protection – what will remain valid in the future?
Data sharing – what will ensure companies can continue with this?
VAT charging on import – will there be deferrals on paying at import? What should companies prepare for?
Conformity assessment checks – What will happen to Notified Bodies?

7. Trade with the rest of the world
UK setting out its schedule of commitments at the WTO (negotiations on Tariff-Rate Quotas)
Publication of Trade Bill, Taxation Bill
UK adopting its own trade remedies framework
Engagement exercise to determine which measures are important for UK business
Closes on 30 March 2018
Government will terminate any EU measures that are not subject to an application to be maintained

8. EU FTAs The UK is seeking to roll over existing EU FTAs
This is not straightforward, due to issues such as:
Cumulation of origin
TRQs
Renegotiation of terms
MFN clauses
What setup for EU FTAs during transitional arrangement?
Important to make the case for agreements that matter for UK businesses

9. Future FTAs
Once we have left the EU, the UK will look to sign trade deals quickly – hence prioritising countries such as New Zealand and Australia
A key political win would be a deal with the US – although a full FTA may not be desirable or feasible (sector- specific agreements would yield quick results with less risk)
Countries where the EU has already concluded agreements – such as Japan – will also be sought out