Brexit round-up – 18/12/20

UK Global Tariff

The government has taken the necessary steps to bring into legal effect the UK’s first independent global tariff regime for almost 50 years, the UK Global Tariff. This will replace the EU’s Common External Tariff from 1 January 2021. The UK Global Tariff provides the framework that the UK will use to trade independently outside of free trade agreements. This represents one of the final steps required for the UK to become an independent trading nation at the end of the transition period and as part of preparations to ensure readiness for 1 January 2021. Once the UK Global Tariff enters into force on 1 January 2021, the UK Government will monitor the impact of the policy. The UK Government will run the Tariff Implementation Monitoring Exercise to invite feedback and evidence and will ensure the legislation is updated as necessary in line with developments in UK trade policy.

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Private International Law (Implementation of Agreements) Bill receives Royal Assent

The Private International Law (Implementation of Agreements) Bill received Royal Assent on 14 December 2020, having completed its passage through Parliament. An accompanying press release from the Ministry of Justice explains that the Act allows the UK to secure its own private international law agreements related to civil, family and commercial law. The Act also simplifies the implementation of three existing Hague Conventions at the end of the UK-EU transition period which are the 1996 Hague Convention on Jurisdiction, Applicable Law, Recognition, Enforcement and Co-operation in Respect of Parental Responsibility and Measures for the Protection of Children, the 2005 Hague Convention on Choice of Court Agreements and the 2007 Hague Convention on the International Recovery of Child Support and Other Forms of Family Maintenance.

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State Aid (Revocations and Amendments) (EU Exit) Regulations 2020

The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (SI 2020/1470) were published on 10 December. The Regulations will come into force on “IP completion day”: 11 pm on 31 December 2020. The purpose of the Regulations is to disapply EU law relating to state aid that would otherwise be retained in the UK by the European Union (Withdrawal) Act 2018. The overall effect is to ensure that EU state aid law does not form part of UK domestic law as retained EU law after the end of the transition period. The Regulations do not, however, affect the application of the state aid provisions in the Northern Ireland Protocol. The Regulations, therefore, reflect the government’s stated policy that at the end of the transition period the UK will have its own domestic subsidy control regime, and will follow World Trade Organisation (WTO) subsidy rules and adhere to any international obligations on subsidies agreed under free trade agreements. Therefore, the Regulations disapply the directly effective rights relating to state aid under Article 107(1) and Article 108(3) of the TFEU and revoke European Commission state aid regulations and decisions. They also amend the Financial Transparency (EC Directive) Regulations 2009 to reflect the Northern Ireland Protocol, and also make consequential amendments to provisions contained in other retained EU law and UK domestic legislation which cross refer to the state aid rules. They also provide transitional provisions relating to court actions relating to breaches of the EU state aid rules prior to IP completion day.

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‘New Deal’ for Northern Ireland

The UK government has announced that it will be providing Northern Ireland with a £400 million package as part of a post transition deal. As part of the Northern Ireland Protocol, the UK Government committed to implement this ‘New Deal’ to help boost economic growth, increase Northern Ireland’s competitiveness and invest in infrastructure. Secretary of State for Northern Ireland, Brandon Lewis, said The New Deal is wonderful news for Northern Ireland and underlines the UK Government’s commitment to supporting and protecting the interests of the people and businesses in Northern Ireland. Fostering economic growth and social cohesion is key to building a stable and prosperous future for Northern Ireland and this additional £400 million will support Northern Ireland after the end of the Transition period enabling NI businesses and its people to innovate and invest.”

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UK and US sign customs agreement

Businesses trading with the United States will be able to continue to trade smoothly following EU exit, after the UK and US governments agreed a deal to continue customs cooperation. The agreement was signed this week by the Financial Secretary to the Treasury Jesse Norman and US Ambassador Robert Wood Johnson at a signing ceremony at the US embassy in London. Financial Secretary to the Treasury Jesse Norman said “This is an important agreement that ensures continuity post EU exit, and demonstrates the strength of the US-UK customs relationship. This deal will allow us to continue to cooperate in combatting customs offences by sharing information and good practice, and provides the legal underpinning for schemes to ease trade flows for importers and exporters.”

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UK signs trade deal with Mexico

The UK and Mexico have this week signed the UK-Mexico Trade Continuity Agreement which locks in tariff-free trade and other benefits for British businesses and consumers. They have also committed to start negotiating a new and ambitious free trade agreement next year. The UK and Mexico also set out their commitment to a joint political dialogue covering all bilateral and international matters of mutual interest, including continuing and intensifying all areas of current cooperation. International Trade Secretary Liz Truss said “This deal supports a trading relationship worth more than £5 billion and locks in access to each other’s markets. We look forward to working together with our Mexican friends and allies on a new and ambitious trade agreement in 2021. This will allow our two countries to go much further in areas such as data, digital trade, investment, intellectual property and services.”

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Brexit deal looks unlikely says Gove

Cabinet minister Michael Gove has said the chances of the UK and EU agreeing a post-Brexit trade deal are “less than 50%” despite the UK government doing everything in order to secure a good free trade agreement in the interest of the whole United Kingdom.” This is in contrast to comments from the EU’s chief negotiator, Michel Barnier, who tweeted “good progress” had been made on a deal. European Parliament leaders have set Sunday as a deadline for them to see the text of any deal.

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If you have any questions about any of the issues which are raised, or would like to discuss your own organisation’s options during the Brexit process, please do not hesitate to get in touch.