It has certainly been an interesting week here in the UK. Negotiations between the UK and the EU have yet to reach an agreement and the date when the UK leaves the EU is fast approaching.
We are set to leave the EU on 29th March 2019 and we are still not clear on the process.
Our government has been very active in Parliament over the last week and there have been two significant votes.
The first vote was to approve the ‘deal’ agreed in principle with the EU. This was rejected by a significant majority. Therefore, this option now looks incredibly unlikely, especially considering the fact that the EU have previously stated that this was the best deal available!
The second vote challenged the current government by means of a ‘vote of no confidence’.
However, Theresa May and her government received the vote of confidence, therefore we will not have a General Election and a second referendum also looks to be unlikely. Whilst Theresa May is still in power, her deal was rejected and now she must find a solution.
There are three possible options:
1 – Negotiate a better deal with the EU, which would require Parliament’s approval (bearing in mind that the EU has previously stated that this is not possible).
2 – Plan to implement a ‘managed no deal’. This would effectively mean that there is no formal deal in place by 29th March. This is the option that we have all hoped would never happen but seems more likely as time goes on.
3 – One other possibility would be a delay/extension to the deadline; this also seems unlikely.
In light of the recent votes and the lack of time available, a ‘no deal’ scenario feels imminent.
Effectively this would require full customs regulations to apply for all shipments effective 29th March 2019. No doubt next week will bring more excitement, but let’s hope for progress and some clarity.