26 January 2018

Department for Exiting the EU: Open letter to business on Implementation Period

Secretary of State for Exiting the EU David Davis, Chancellor Philip Hammond, and Business Secretary Greg Clark have written to businesses setting out the UK’s ambitions for an implementation period following Brexit.

As we enter those discussions, we believe it is important to emphasise three key aspects of the implementation period.

First, in order that our terms of trade remain unchanged during the implementation period, it will need to be based on the existing structure of EU rules and regulations. And for these common rules and regulations to work effectively, they will need to remain common to both parties. We will therefore maintain continuity with rules during the period. Of course this will require both parties to continue to act in good faith, reflecting the spirit of our future partnership – but it is the right way to give businesses certainty, and avoid unnecessary disruption.

Second, no business need worry that it will fall outside the scope of this period. Our intention is to mimic the breadth of our current arrangements, from goods to agriculture to financial services, meaning that every business, small or large, will be able to go on trading with the EU as it does today until it’s time to make any changes necessary for the future partnership. We also plan to work together with the EU to ensure the UK remains covered by those international agreements, including free trade agreements, to which it is currently a party by virtue of our EU membership.

Third, EU citizens will continue to be able to come and live and work in the UK, with no new barriers to taking up employment. As the Prime Minister has made clear, we will introduce a registration scheme for new arrivals in preparation for our future immigration system, but this will not place any new burdens on businesses during the implementation period.

These three elements are all about delivering the core purpose of the implementation period - ensuring people and businesses have sufficient time to prepare for the future by maintaining continuity in our trading arrangements with the EU immediately after our withdrawal.

There is clearly more for members of our negotiating team to discuss with their EU counterparts over the next few weeks, but we believe our proposal is closely aligned with the guidelines adopted by EU leaders in December. Both we and the EU therefore want to agree the detail of the implementation period by the end of March, making good as swiftly as possible on our promise of certainty. We will then finalise the text of the Withdrawal Agreement to give the implementation period legal form, at the same time as we build out with the EU the framework for our deep and special future partnership.

Full letter

© Department for Exiting the European Union