Brexit update

Following the U.K. election, though, more has now become clear in the Brexit timeline

The next step for Boris Johnson's government will now be to get the Brexit deal approved in the House of Commons. With the big post-election victories, that seems like the least bump in the road right now. Tougher that could be in the House of Lords, the House of Lords, where this election has not changed relations.

After the United Kingdom, then the EU is on. During the vote, a simple majority is sufficient. Once these steps are taken, on the night of Jan. 31, 2020 to Feb. 1, 2020, the Brexit becomes a reality. On Feb. 1, an agreed transition period begins during which the U.K. still remains a virtual EU member, i.e., remains part of the single market. The only thing that changes overnight is that the British no longer have a voice in Brussels. So for logistics, nothing changes.

Trade Agreement

Negotiations on a trade deal between the UK and the EU will begin in February. The hope is that this will be settled by 31.12.2020 . EU negotiations with countries like Canada and South Korea take five to nine years. There is no such time now, as the transition period already ends on Dec. 31, 2020

One more escape can be found. Midway through the new year is the final moment to decide on a one- or two-year extension of the transition period. Almost all see this as inevitable, because a comprehensive trade agreement cannot be expected 11 months from now. Johnson, however, has consistently said he does not see such an extension. December 31, 2020 Could well be a new, rock-solid "no deal" Brexit date. If Johnson persists in his refusal to extend the transition phase, and if there is no trade deal with the EU by the end of next year, then the United Kingdom will fall out of the single market on Jan. 1, 2021, unceremoniously and without agreements. In that case, World Trade Organization (WTO) rules will apply. That will inevitably lead to border controls, tariffs and other trade barriers.

Summary

Until 31-12-2020 nothing changes during transport to and from the United Kingdom . So no customs clearance or other customs declarations. Important will be possible postponement date where the deadline will be June 2020.

At no delay it becomes:

• a soft Brexit if there is an agreement.
• no deal then hard Brexit follows

We will report new developments via the website. Should there be any questions in the interim, please contact us.