Theresa May speaks of a ‘Transitional Brexit Deal’
Priminister Theresa May has stated that her government will work towards avoiding a cliff-edge scenario after the two year Brexit negotiating period is up. The idea is a transitional Brexit deal to further a stable and successful Brexit.
A transitional deal would possibly extend the period before Britain leaves the EU. While the extended negotiations are being carried out, hopes are that trading terms and some conditions of free movement will remain between Britain and the 27 member states of the EU.
The suggestion of a transitional Brexit came as a response to the CBI president Paul Drechsler’s concerns about the implications of a sudden change of trading conditions; a so-called cliff-edge scenario.
Businesses today are inevitably already considering their plan of action for such a scenario, as new trading rules would effectively have an impact on airports, ports and logistics firms.
Due to a possible increased amount of administrational and economical processes, more storage warehouses to store goods on-site, and new supply roads, may be a necessity. In the swift advancement of a cliff-edge scenario, the quick satisfaction of such needs would be an impossibility.
Theresa May is therefore leaning towards the possibility of a transitional deal with the EU, to avoid the possible risks of a sudden Brexit. The transitional deal would be working to secure the best deal for both businesses and people in the UK.
The transitional deal is saluted by businesses as the negotiations in the two-year period following the activation of article 50 would concern the conditions for leaving above making trading arrangements for the future.
Possible issues with the suggestion may be the negative responses to a continued policy of free movement, as many leave voters hoped to see regulations to lower immigration. The deal may also involve the UK paying EU fees for longer than expected.
However, a transitional deal may be to prefer. Despite the implications of extending the leave-period, it is a cautionary measure to prevent unmanageable and drastic changes which may have a negative impact on the businesses and the people of the UK.