The latest on Brexit

Transition period

The UK and EU have reached a political agreement on the terms of a transition period applying from 29 March 2019 (i.e. the withdrawal date) until 31 December 2020 which aims to protect against a cliff-edge Brexit. The draft transition agreement will be included in the final withdrawal agreement, which is consistent with the EU's position that "nothing is agreed until everything is agreed". In general, the transition agreement provides that the UK will be treated as an EU member for most relevant purposes during the transition period, meaning that EU law would continue to apply in the UK (including all new EU laws coming into effect during the transition period). The UK will not, however, continue to have any voting or participation rights in in EU institutions following withdrawal on 29 March 2019.  

UK legislation

From the end of any transition period, the laws of the EU will no longer be effective in the UK. However, the Government has stated that existing EU legislation as of such date will be converted into UK domestic law and will remain in force until legislators decide otherwise. Theresa May has also recently stated that while over time UK law after Brexit may not be exactly the same as EU law, "it should achieve the same outcomes". 

The UK's relationship with the EU after Brexit

After holding discussions with her Cabinet at the Chequers Summit, Theresa May gave a speech on 2 March 2018 in which she set out how she envisages the post-Brexit UK to function. For instance:

• Banks located in London will lose the right to trade in the EU without approval (i.e. passporting), but a new system will be introduced to create "the same regulatory outcomes over time" for the financial services industry.
• The UK will continue to participate in the EU's energy market and will continue to maintain a close relationship with Euratom.
• Regulatory standards will be kept "as high as the EU's".
• The UK intends to remain a member of certain agencies, e.g. the European Medicines Agency, but will be leaving behind certain other frameworks such as the Common Fisheries Policy.
• Given that the jurisdiction of the European Court of Justice in the UK will end, alternative independent arbitration mechanisms for trade disputes will need to be introduced to replace the role currently played by the European Court of Justice.

EU residents in the UK – rights after Brexit

With respect to the rights of EU citizens living in the UK, a Brexit policy paper prepared by the UK's Home Office sets out that as of 31 December 2020 (being the end of the transition period):

• EU citizens who have lived continuously in the UK for five years or more will be able to apply for 'settled status' and may then apply for British citizenship.
• EU citizens who have not lived in the UK for five years will be able to apply to stay until they have lived in the UK for five years, and may then apply for 'settled status'.