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

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 +

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

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”

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

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?

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

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

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