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Thursday 30 January 2020 12:52 pm  |  Updated:  Thursday 30 January 2020 1:23 pm

Brexit day: what happens on 31 January 2020?

By: Vicki Owen

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French train station pointing to exit
French train station pointing to exit

Brexit day on 31 January marks the end of the UK’s membership of the European Union and the start of the “transition period”. After three previous departure dates came and went (20 March 2019, 12 April 2019 and 31 October 2019), it’s the one we all expect to actually happen.

The transition – or “implementation” – period will last for 11 months until 31 December 2020.

The end of the transition period has already been referred to as a new “cliff edge”. It’s possible, however, that this deadline could be extended too – up to a maximum final date of 31 December 2022.

So what can we expect on 31 January?

In pretty much all respects we can expect everything to be exactly the same.

But at 11pm GMT the UK will leave the European Union, something no country has done before.

Three and a half years after the EU referendum, the major difference is that the UK will not have any members of the European Parliament (MEPs).

British businesses will still be covered by EU rules and trading arrangements. The UK will continue to contribute to the EU’s budget.

But Brexit in name will be “done” and the Department for Exiting the European Union will apparently be “wound up”.

Crucially, though, the reality is that 11pm on 31 January will represent only the beginning of preparations for a new relationship with the EU.

Read more

Singapore on Thames or the Sick Man of Europe?: The Economics of Brexit Ten Years from the Referendum 

UK-EU Brexit negotiations meeting with officials discussing trade agreements and policy impacts in a formal conference room

Everything from trade tariffs (taxes on imports), access to fishing waters and safety standards to freedom of movement is still to be thrashed out and untangled.

  • Read more: Brexit: what’s next? The crunch dates ahead and what investors expect

Article 50 and whether the UK could have “cancelled” Brexit

There’s been no doubt over Boris Johnson’s stance on this one since he took over as prime minister in July, particularly as he campaigned in the recent general election under the slogan “Get Brexit done”. However, the possibility of revoking Article 50 and remaining in the EU has been a topic of considerable debate.

Article 50 was invoked back on 29 March 2017 by former Prime Minister Theresa May. The clause of the European Union’s Lisbon Treaty, an agreement which became law in 2009, sets out the official process for leaving the EU.

A European Court of Justice ruling in 2018 concluded it could be revoked. A petition to do just that and remain in the EU became the biggest in history last March, with more than 3.5 million names.

With the UK officially leaving and entering the transition period, revoking Article 50 is no longer an option.

The UK voted to leave the EU by 52% to 48% in 2016. More than 33.5 million votes were cast.

Important Information: The views and opinions contained herein are of those named in the article and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The sectors and securities shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell. This communication is marketing material.

This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. The opinions in this document include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change. Issued by Schroder Investment Management Limited, 1 London Wall Place, London, EC2Y 5AU. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority

Read more

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