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IMPACT – HIGH
Prime Minister Theresa May said Tuesday the United Kingdom will leave Europe’s single market, confirming plans for a “Hard Brexit” that would dramatically reshape the U.K.’s economic and immigration relations with the rest of Europe.
May’s remarks set out her government’s Brexit strategy in the most detailed terms offered to date. The U.K. intends to invoke Article 50 of the Lisbon Treaty to formally begin the process of withdrawing from the European Union by the end of March. That would set off a two-year negotiating period that would have the U.K. leave the European Union in 2019.
“We do not seek to hold on to bits of membership as we leave,” May said. “The United Kingdom is leaving the European Union and my job is to get the right deal for Britain as we do.”
Among other points, May said:
May also stressed that while the U.K. wants to be the “friend and neighbor” to the EU, it would look beyond Europe to the wider world as well, taking an international, not isolationist, approach.
Background: The U.K. narrowly voted to leave the EU in June of 2016, in part due to popular disapproval of the “free movement of people” from within the EU and the overall difficulties of managing immigration in the U.K. May has kept her cards close to the vest ahead of the triggering of Article 50. She bowed to pressure Tuesday to provide a more detailed plan, but did not satisfy demands from some corners. May has not, for example, provided a detailed white paper or other written document to submit to MPs for consideration, as some have called for.
What’s clear, however, is that the government will pursue a “Hard Brexit.” Chancellor Philip Hammond separately confirmed, “We cannot be members of the single market because of the political lines around the four key freedoms that the other leaders have set.” One of those freedoms is the free movement of people, which would prohibit the U.K. from controlling migration from Europe if it were to remain a part of the single market. Instead, the government is aiming for a free-trade deal with the EU, leaving the immigration of EEA nationals and their families outside of any trade agreement that might be reached.
BAL Analysis: Brexit will affect all aspects of the U.K. economy, legal system and immigration scheme. May’s remarks all but dashed hopes for a “Soft Brexit,” in which free movement policies and the jurisdiction of the European Court of Justice would remain in place. It is safe to assume that future migration from EU member states will be subsumed in the U.K.’s overall immigration framework. The failure, so far, to offer guaranteed relief for the 3 million EEA nationals currently in the U.K. is a disappointment. Additionally, fear of “cliff edge” change immediately after Brexit has not been allayed, as May made it clear the U.K. should not accept a “purgatory” of long-term transitional arrangements.
BAL continues to follow all Brexit developments and continues to consult both with clients and the government, when possible. Additional Brexit coverage is available in BAL’s Brexit Bulletin. BAL is available to provide analysis for your particular business. Please contact uk@bal.com to discuss strategic planning and the options available to your company.
This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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