The Withdrawal Agreement Act Transition Period: What You Need to Know

Following the UK`s departure from the European Union on January 31st, 2020, a transition period was put in place to allow for negotiations on the future relationship between the two parties. This period, set to end on December 31st, 2020, was enshrined in UK law through the Withdrawal Agreement Act (WAA) of 2020.

The WAA transition period means that, during this time, the UK remains a member of the EU`s single market and customs union. This allows for the continued free movement of goods, services, people, and money between the UK and EU, as well as the application of EU laws and regulations.

However, the transition period is not a status quo arrangement – the UK is no longer a member of the EU and is no longer represented in its institutions. Instead, the UK is treated as a third country, with certain exceptions and arrangements in place to facilitate the ongoing relationship with the EU.

The WAA also provides for the possibility of extending the transition period for up to two years, but this option must be exercised by July 1st, 2020. At the time of writing, the UK government has indicated that it will not seek an extension, meaning that the transition period will end on December 31st, 2020, regardless of whether a comprehensive trade deal has been agreed with the EU.

What does this mean for businesses and individuals?

The WAA transition period has provided some degree of certainty and stability for businesses and individuals during the Brexit process. However, with the end of the period fast approaching, there are still many unanswered questions about the future relationship between the UK and EU.

For businesses, the end of the transition period means that there will be changes to the way that goods and services are traded between the UK and EU. New customs and regulatory requirements will come into effect, potentially leading to delays and increased costs. Businesses that rely on EU migrant workers may also face difficulties in recruiting and retaining staff.

Individuals may also be affected by the end of the transition period, particularly those who travel between the UK and EU for work, study, or leisure. The validity of passports and other travel documents may change, while healthcare entitlements and insurance coverage could be affected.

In conclusion, the WAA transition period has provided a period of stability for businesses and individuals during the Brexit process. However, with the end of the period fast approaching, it is important for all parties to prepare for the potential changes and disruptions that may arise. Stay up-to-date with the latest developments and seek professional advice where necessary to navigate the post-transition landscape.