Brexit Update: Practical Considerations For Business As Rumors Of A Transition Agreement Swirl

by King & Spalding

Editor’s Note: In previous issues, the Trade and Manufacturing Alert has covered important developments relating to Brexit. As the UK and the EU move closer and closer to Brexit, and the effects on the international business marketplace and international commerce due to Brexit are increasingly known, the Trade and Manufacturing Alert will keep our readers informed of ongoing developments with monthly articles on Brexit-related topics.

Reports are emerging that an agreement-in-principle has been reached on the Brexit Bill, in preparation for a meeting on Monday, December 4 between UK Prime Minister Theresa May and Jean-Claude Juncker, President of the European Commission. The final settlement total has been estimated between €45 billion to €55 billion, depending on the final methodology and timetable to be used to pay out the settlement.

Recent reports also indicate good progress on the second issue of the rights of EU and UK citizens currently living and working in the other jurisdiction. If these two reports are true then the focus will shift to resolution of the problem of the Irish border. Only with sufficient progress on all three issues will the EU agree to move to discussion of the broader trading relationship between the UK and the EU post-Brexit.

The Irish border issue foreshadows broader issues around the handling of the border between the EU and the UK. It has been given priority due to the importance of an open border to resolution of the violent dispute between republicans and unionists in Northern Ireland. As the UK continues to insist that it will not enter into either customs union or the single market with the EU, many observers in the business community are skeptical about the prospects for an open Irish border.

Business groups also are concerned about the disruption to supply chains from imposition of border controls in Northern Ireland. Supply chains of many industries move across the northern Irish border numerous times in the manufacture of goods and Irish products in EU supply chains typically transit the UK.

More broadly, this problem has raised the spectre of how to manage customs disruption between the UK and the entire EU following Brexit. Port authorities in the south of England are warning of massive queues of goods as the facilities for customs clearance in the UK and the continental EU ports are not ready for the imposition of customs controls on trade that currently flows without the need for customs clearance.

The EU and UK negotiators have targeted a summit of EU leaders on December 14 to approve the extension of negotiations into the terms of the future relationship. It is hoped that the Northern Ireland border issues have made enough progress by then, along with the reported progress on the rights of citizens in the respective jurisdictions and the financial settlement being reported, so that the EU Member States authorize negotiations on the future relationship.

UK and EU businesses are starting to prepare for the possibility that no trade deal is reached in time for Brexit while also advocating preferred approaches to the terms of the future relationship. Complex supply chains crossing the EU-UK borders are being examined in light of possible delays and other disruptions, including imposition of tariffs or import licenses or other customs and regulatory requirements on movements across the new border.

Businesses also are expressing views on the need for a transition period, while taking positions on the form and duration of such a transition. One approach many businesses are attracted to is an extension of the current negotiations on the basis of retaining the status quo for a period of two or more years. It is not clear, however, that this transition arrangement would be acceptable to either the UK or the EU.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© King & Spalding | Attorney Advertising

Written by:

King & Spalding

King & Spalding on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.