Brexit

The United Kingdom left the European Union on 31 January 2020. A transition period is now running until 31 December 2020. Within this period, the UK and the EU are negotiating on their new relationship and agreements that will apply as of 1 January 2021. During the transition period, the UK must observe the rules and laws of the EU. The end of the transition period will be marked by changes for both citizens and companies.

To date, the EU and the UK have not succeeded in reaching any agreement. Recently, on 1 October 2020, the European Commission even launched an “infringement procedure” against the UK, prompted by the Bill tabled by the government of Prime Minister Boris Johnson. According to the European Commission, this Bill breaches international law and violates the agreements in place between the EU and the UK about the Irish border, among other things.

The present turbulent situation around Brexit and the lack of clarity on a potential agreement creates legal and economic unrest for businesses. Especially if your company trades with British companies, you supply goods or services to British customers and/or you have British employees. Although Brexit may involve risks for your company, it may also offer opportunities. Consequences will vary depending on the sector of industry and jurisdiction.

For the Netherlands, in one respect Brexit has produced a big advantage: the relocation of the prestigious European Medicines Agency (EMA) to the Netherlands. This relocation works as a pull factor for all kinds of businesses in the pharmaceutical industry. Naturally, this involves risks as well as opportunities for the competitive position of parties already domiciled in the Netherlands.

Brexit will also bring opportunities and risks for other sectors, particularly transport, customs/export of goods and free movement of personnel. Transport and customs/export will probably become more time- consuming and expensive due to additional handling. It will probably become harder for British and EU employees to work within each other’s territories, and cross-border work may entail additional costs. We must wait until 31 December 2020 to find out whether any arrangements have been made about such topics, and what they look like. For your company, it is advisable to identify the risks in order to ensure the continuity of deliveries by your company.

Brexit may also jeopardize the continuity of British companies. Again, this depends on whether or not an agreement will be concluded. It is clear in any case that consumer confidence in the United Kingdom is currently low and that companies are leaving.

Companies will have to be flexible and ensure that their commercial interests are guaranteed and protected by optimal trade and investment arrangements. To achieve this, many commercial contracts will need to be adjusted. In addition, companies will have to take into account the consequences of Brexit for their trademarks and designs.

The Netherlands is a good, reliable and cost-efficient alternative for commercial and legal contracting and for dispute resolution in the EU.

Our Brexit team is ready to offer quick guidance and legal assistance to your company in the Netherlands.

Please feel free to contact Martine de Koning.

• Start of new relationship between EU and UK – 1 January 2021
  Start of the new relationship between the EU and the UK, with or without a deal.
  
  
• End of transition period - 31 December 2020
  The transition period ends on 31 December 2020.
  
  
• European Commission starts infringement procedure against UK – 1 October 2020
  Ursula von der Leyen, the President of the European Commission, announced the launch of an infringement procedure by the European Commission against the UK. The reason for this is that the Bill tabled by the government of Prime Minister Boris Johnson breaches international law. In addition, this Bill violates the arrangements in place between the EU and the UK concerning the Irish border.
  
  
• Planned approval for negotiating mandate - 1 March 2020
  The European Commission will have the authorisation to open trade talks with the UK after its negotiating mandate is approved.
  
  
• Brexit deadline - 31 January 2020
  Scheduled Brexit date.
  
  
• Ratification date of the Withdrawal Agreement - 30 January 2020
  Following the consent of the European Parliament on 29 January 2020, the Withdrawal Agreement is ratified by the Council of the European Union on 30 January 2020.
  
  
• House of Commons approves of the Withdrawal Agreement Bill - 9 January 2020
  House of Commons approves the Withdrawal Agreement Bill. The transition period is effective from 9 January 2020 until 31 December 2020.
  
  
• Boris Johnson wins general elections - December 12 2019
  Makes it more likely that the Withdrawal Agreement (which was reached by the UK and the EU on October 17th 2019) on the conditions for the departure of the UK will be approved by the parliament of the UK.
  
  
• Vote for new parliamentary elections – 29 October 2019
  A majority of the House of Commons supported the vote for early general elections on 12 December 2019. The vote for the motion to hold early general elections still requires approval of the House of the Lords. According to the current planning, UK’s parliament will be dissolved on 6 November 2019.
  
  
• Third Brexit delay – 28 October 2019
  The European Council agrees to a further delay of the Brexit date until 31 January 2020.
  
  
• Brexit deal approved but will not be completed before deadline - 22 October 2019
  Prime Minster Johnson’s Withdrawal Agreement Bill passed the first stage in the UK parliament, but the accompanying ‘programme motion’ to get all stages of the bill completed in three days before the Brexit deadline was defeated.
  
  The parliamentary debate on the Withdrawal Agremeent Bill has come to a standstill until the EU decides on any postponement of the Brexit date.
  
  The European Council president, Donald Tusk, recommends to the European Council that it approve of UK’s request for a further extension of the Brexit deadline.
  
  
• Withdrawal Agreement Bill published – 21 October 2019
  The British government formally introduced the Withdrawal Agreement Bill, the legislation necessary to ratify the withdrawal agreement. The House of Commons held a first reading.
  
  
• Prime Minister Johnson sends letters to European Council – 19 October 2019
  The British Prime Minister Johnson sent two letters to the president of the European Council. The first letter refers to British government’s request to first fulfill the requirements of the ‘Benn Act’ and to further extend the Brexit until 31 January 2020. This letter was not personally signed by the Prime Minister. In the second letter, the Prime Minister states that it is his belief that a delay of the Brexit would be a mistake and requests support from the president and European Council members to ensure withdrawal without an extension.
  
  
• EU and UK agree on new Brexit deal - 17 October 2019
  The European Commission and the UK have agreed upon a revised Brexit deal. The European Council endorsed the new Brexit deal.
  
  
• New UK Prime Minister selected - 23 July 2019
  Boris Johnson is selected as the new leader of the Conservative Party and becomes the next Prime Minister of the UK.
  
  
• May announces her resignation – 24 May 2019
  The British Prime Minister May announced that she plans to resign. May will stay on as Prime Minister until her successor is selected. She will step aside as leader of the Conservative Party on June 7, 2019. This will trigger a new leadership contest within the Conservative Party. On June 10, 2019 members of the Conservative Party can put themselves forward as a candidate. The new leader of the Conservative Party will be chosen by its members and will automatically become the new Prime Minister.
  
  
• New Brexit deadline – 10 April 2019
  The European Council has granted the United Kingdom further extension of the Brexit date until 31 October 2019. Should the Withdrawal Agreement be ratified sooner, the United Kingdom will most likely exit the EU at an earlier date. The Dutch Prime Minister Rutte finds that the extension is an “acceptable compromise” and expects that the Brexit will not be delayed again.
  
  
• May again requests delay until 30 June 2019 – 5 April 2019
  The British Prime Minister May requested a further delay of the Brexit until 30 June 2019. If the European Council does not grant extension, the United Kingdom will exit the European Union on 12 April 2019.
  
  
• Third vote Brexit-deal – 1 April 2019
  On 29 March 2019 the House of Commons rejected May’s third Brexit-deal. On 1 April 2019 the House of Commons voted on alternatives of the Brexit-deal. These alternatives were rejected as well.
  
  
• May requests delay until 30 June 2019 – 21 March 2019
  The British Prime Minister May requested a delay of the Brexit until 30 June 2019. The European Council agreed to a short term extension until 22 May 2019 under the conditions that the British Parliament agrees to the Withdrawal Agreement within one week. If the British Parliament does not agree to the Withdrawal Agreement, the European Council grants the United Kingdom a short delay until 12 April 2019.
  
  
• New referendum – 14 March 2019
  On 14 March 2019 the British House of Commons voted on a second referendum, because British parliamentarians no longer wished to leave the European Union on 29 March 2019 under the conditions of the current Brexit-deal. However, the vote on the second referendum lacked majority support.
  
  
• A no-deal Brexit? – 13 March 2019
  On 12 March 2019 the British House of Commons has rejected the Brexit-deal for the second time. Subsequently, the House of Commons voted on the no-deal Brexit one day later. This deal was also voted down by a large majority.
  
  
• Minister Hoekstra calls on entrepreneurs to prepare for Brexit – 16 January 2019
  On 16 January 2019 Minister Hoekstra called on entrepreneurs to prepare for Brexit. According to Minister Hoekstra, Brexit is in all cases extremely bad news for the Netherlands and Europe; economically, financially and geopolitically. To prepare for Brexit, entrepreneurs are referred to the Brexitloket website.
  
  
• Lower House rejects first Brexit-deal – 16 January 2019
  In the evening of 15 January 2019 the vote on the Brexit deal took place in the British House of Commons. The Brexit deal was voted down by a large majority. It is now up to the British Government to decide what must be done. The no-confidence motion, submitted that very same evening against May by the leader of the opposition party, took place on 16 January 2019 and was rejected.
  
  
• The European Medicines Agency (EMA) arrives in the Netherlands – 9 January 2019
  On 9 January 2019 the temporary accommodation for the European Medicines Agency (EMA) was ready for use. This is an important step in the relocation of the EMA to the Netherlands. The EMA brings 36,000 visitors to the Netherlands every year and ensures the arrival of many companies.
  
  
• Opening of the Netherlands Commercial Court – 1 January 2019
  On 1 January 2019 the Netherlands Commercial Court (NCC) opened its doors (which event is unrelated to the Brexit). This specialized international trade chamber as a standard tries cases in English and delivers judgments in English. In doing so, the NCC meets the needs of companies that are confronted ever more often with international trade disputes and English-speaking parties. Litigation before the NCC offers these entrepreneurs a reliable, innovative and cost-efficient way of settling disputes.
  
  
• European Commission presents No Deal Contingency Plan – 19 December 2018
  On 19 December 2018 the European Commission presented a No Deal Contingency Plan. The Commission proposes certain regulations in the field of financial services, transport and customs/exports in order not to cause too much trade distortion.
  
  
• Voting Brexit-deal delayed – 10 December 2018
  On 4 December 2018 the five-day debate in the House of Commons on the Brexit deal began. On 10 December 2018 the British Prime Minister May announced that the Brexit deal vote would be postponed. May thereby acknowledged that, as was already apparent from the course of the debate, a substantial majority in the House of Commons would vote against the Brexit deal.