12 March 2017

Commons' Foreign Affairs Committee: Article 50: 'Dereliction of duty' to fail to plan for 'no deal'

The consequences of 'no deal'

The consequences of ‘no deal’ are far from being what the Brexit Secretary called "an exercise in guesswork." On the contrary, the evidence published in today's report makes the scope of those consequences clear.

The full potential implications of 'no deal', explored in detail in the annexes to the report, include:

• Ongoing disputes over the exit 'bill'
• Uncertainty and confusion for UK citizens in the EU and EU citizens in the UK
• Trading on World Trade Organisation (WTO) terms
• A 'regulatory gap' and legal uncertainty in areas not covered by the "Great Repeal Bill"
• Uncertainty over UK participation in the EU's common foreign and security policy
• The sudden return of a customs border between Northern Ireland and the Republic of Ireland

No evidence Government planning for possibility of 'no deal'

Chair of the Committee, Crispin Blunt MP, commented:

"The possibility of 'no deal' is real enough to require the Government to plan how to deal with it. But there is no evidence to indicate that this is receiving the consideration it deserves or that serious contingency planning is underway. [...]

But there is a real prospect that negotiations will fail. The Government should therefore require each Department to produce a 'no deal' plan identifying the likely consequences and making proposals, including guidance to individuals and businesses, to mitigate potential risks. Anything less would be a dereliction of duty." 

 

Full report: Article 50 negotiations: Implications of 'No Deal'

© House of Commons