On January 29, 2020, the EU Parliament gave its final approval to UK’s departure from the EU, followed by the ratification of the Council of the EU on January 30, 2020. The UK Parliament completed the ratification of the Withdrawal Agreement on January 22, 2020. The Agreement was reached on October 17, 2019 (see previous post).
 
From February 1, 2020, until December 31, 2020, a transition period applies, and until the end of the transition the UK will be bound by EU’s rules, including the EU Customs Union and the Single Market. Therefore, goods lawfully placed on the market in the EU or in the UK before the end of the transition period may continue to freely circulate in and between these markets without having to comply with additional requirements. However, the UK will not take part in the EU decision making process. The transition period can be extended for one or two more years, if this extension is agreed before July 1, 2020.
 
The Negotiations for the future bilateral relationship will start in March 2020. On January 1, 2021, a new agreement on UK-EU relations could enter into force if a deal has been reached and ratified by December, 2020. However, if negotiations fail and the transition period is not extended, there is a possibility of a UK’s sharp rupture from the EU on January 1, 2021. Regarding trade between the EU and the UK, the World Trade Organization (WTO) rules would be applicable.

Entry into Force of the Agreement on the Withdrawal of the UK from the EU
Brexit Deal Approved by the EU Parliament

 

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