On December 12, the UK Treasury Committee (Committee) published a call for written submissions (Call) on transitional arrangements. The Call forms part of the Committee’s inquiry into the United Kingdom’s future economic relationship with the European Union, and seeks evidence on the possible relationships that the United Kingdom might pursue with the European Union and the practical consequences anticipated by individuals and businesses.
“Transitional arrangements” under the Call include any arrangement scheduled to take effect from the date the United Kingdom formally leaves the European Union (i.e., two years following the Article 50 notification) and the date on which the final relationship with the European Union becomes effective. The Call requests evidence from firms, trade associations, regulators, experts and any other interested parties on the following:
- Desirability of transitional arrangements, including: (1) in principle arrangements; (2) any pre-emptive action firms might take if transitional arrangements are not committed to during negotiations; (3) possible risks faced in the absence of transitional arrangements, and; (4) information on how the Great Repeal Bill (see the Corporate & Financial Weekly Digest edition of December 2) might provide enough “certainty and continuity” to deem transitional arrangements unnecessary.
- Design of transitional arrangements, including: (1) how much notice firms would need to make preparations, once the United Kingdom’s final relationship with the European Union is settled; (2) the form of transitional arrangements necessary to prevent pre-emptive action by the private sector; (3) the desirability of a “standstill,” temporary period where the relationship between the United Kingdom and the European Union does not change.
- Negotiation of transitional arrangements, including: (1) the interests of EU member states and EU businesses in transitional arrangements; (2) the possible timeframe for finalizing transitional arrangements during Article 50 negotiations; (3) the compatibility of transitional arrangements with the UK Government’s intention to leave the European Union by April 2017; and (4) the practicalities of negotiating transitional arrangements prior to the final relationship with the European Union being agreed (among others).
Written submissions must be provided to the Committee by January 31, 2017.
The Call can be found here.