The EU and the UK reach an agreement on the transition period
On 19 March 2018, the EU and the UK have agreed terms for a 21-month transition after Brexit.
This agreement is conditional upon the two Parties reaching an agreement on the complete withdrawal of the UK from the EU which is expected to take place in March 2019, which will be the date from which the 21-month transition period will start.
The following are the main terms negotiated by the EU and the UK on this 21-month period (which, at this stage, will thus be expected to terminate on 31 December 2020) :
- The UK will have to abide by all existing EU rules but will lose its say in the EU decision-making process. However, the EU accepted that the UK would be at least consulted on decisions made during the transition, for example on decisions setting quotas for fishing in UK waters;
- The free movement of goods, services, capital, and people between the UK and EU will continue;
- On Ireland, a “legal” backstop will keep Northern Ireland in key parts of the single market and the EU’s customs union unless, or until, another solution is found;
- A comprehensive agreement on EU citizens’ rights in the UK and on UK citizens’ rights in the EU after Brexit, whereby the UK citizens who will arrive in the EU (and vice versa) during the transition period will have the same rights as those arriving before the Brexit period;
- A comprehensive agreement on the UK’s financial settlement, i.e. on the money the UK will have to pay to the EU as for its departure from the EU;
- The UK will be able to negotiate and sign new trade deals with third countries during the transition period. However, these deals will be implemented only after the transition period.
This agreement will now have to be endorsed by the EU and the UK authorities.
