New Brexit Deal agreed by EU

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Prime Minister Johnson and the EU have struck a new Brexit Deal replacing the Back Stop which Parliament hated under the deal Mrs May negotiated.

Having managed to put a New Brexit Deal together in such as short time, in the face of an EU that said Mrs May’s deal couldn’t be renegotiated, is an unbelievable feat in itself. However it doesn’t really matter what the EU have agreed having changed their stance from renegotiation being impossible, the deal still has to pass Parliament and that is by no means certain.

Jean-Claude Juncker has stated that he would oppose any further extension to Brexit, even if Boris Johnson becomes legally obliged to request it under legislation passed by Parliament. However it’s down to the EU27 country leaders to grant or deny an extension and that remains on a knife edge – it only takes for one to object for an extension to be denied.

So what is in the deal – there are three main points.

  • Northern Ireland will remain a part of the UK customs territory and the whole of the UK will leave the EU.
  • There will be an alignment to the set of rules related to the Single Market.
  • There will be a consent process for Northern Ireland to have a say on the law.

In practical terms, this could result a customs border down the Irish Sea. Many products destined for Northern Ireland could ship customs free from the mainland UK. However for some products duty may have to be paid on products shipping, if the products stay within Northern Ireland then the duty would be refunded but duty no refund if the good are transferred to the Irish Republic. This could cause issues for marketplace sellers with additional obligations to collect duty when selling to businesses (and possibly consumers) within Northern Ireland.

There is no certainty that the deal will pass Parliament slated to have a special sitting on Saturday. Plus there are already petitions being lodged in the Scottish courts claiming that the deal is illegal as it does treat Northern Ireland differently to the rest of the UK. Incidentally, the deal also has yet to be approved by the EU27 leaders although that is likely to be a ‘Yes’ with a massive heave of relief.

Many are fed up with Brexit and just want it over. Others were fed up with Brexit in the first place and just want it cancelled. This deal is likely to be contentious to both parties and only time will tell if enough MPs think it worth taking a deep breath and voting it through. The alternative could be voting it down in which case a No Deal Brexit is perhaps closer than ever if the EU refuse any further delays, or MPs could bring about legislation to cancel Brexit all together.

Don’t forget, we have a Brexit webinar scheduled for the 20th of November ahead of Black Friday, this is a webinar you won’t want to miss as we dissect whatever happens between now and then with practical advice on how to trade. Book here to reserve your place.


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