GTC Advisors – UK 'Brexit' Negotiations Start Today

GENEVA - June 19, 2017 - PRLog -- Today is a hugely significant day for the United Kingdom as the countries representatives start negotiations on what many believe to be a landmark case, leaving the European Union.

Whilst the country voted last year to leave the European Union, there has not been a day since that there has been some press release or news article discussing how this could be turned around. The snap elections held earlier this month shone a light on how split the country is after what was expected to be a landslide victory for the Conservatives saw a hung parliament result.

Now it is up to David Davis to steer the negotiations with the European Union towards what is hoped a beneficial outcome for the UK and its businesses.

Brexit Secretary David Davis will call for "a deal like no other in history" as he heads into talks with the EU.

Subjects for the negotiations, which officially start in Brussels later, include the status of expats, the UK's "divorce bill" and the Northern Ireland border.

Mr Davis said there was a "long road ahead" but predicted a "deep and special partnership".

The UK is set to leave the EU by the end of March 2019.

Day one of the negotiations will start at about 11:00 BST at European Commission buildings in Brussels.

Mr Davis and the EU's chief negotiator Michel Barnier, a former French foreign minister and EU commissioner, will give a joint press conference at the end of the day.

The UK minister, who will be accompanied by a team of British officials, is expected to say: "Today marks the start of negotiations that will shape the future of the European Union and the United Kingdom, and the lives of our citizens.

"We want both sides to emerge strong and prosperous, capable of projecting our shared European values, leading in the world, and demonstrating our resolve to protect the security of our citizens.

"I want to reiterate at the outset of these talks that the UK will remain a committed partner and ally of our friends across the continent.

"And while there is a long road ahead, our destination is clear - a deep and special partnership between the UK and the EU. A deal like no other in history."

European Union sources reported that the talks will follow the EU's preferred pattern of exit negotiations first, with the future relations between the two sides - including the free trade deal the UK is seeking - at a later date.

Five major UK business bodies have come together to call for continued access to the European single market until a final Brexit deal is made with the EU.

In a letter to Business Secretary Greg Clark, they urged the government to "put the economy first".

The letter is from the British Chambers of Commerce, Confederation of British Industry, EEF, Federation of Small Businesses and Institute of Directors.

On the eve of talks, Chancellor Philip Hammond issued a strong warning about the implications of the UK leaving the EU without a deal in place.

Mr Hammond said that having no deal would be "a very, very bad outcome for Britain" but added that one that aimed to "suck the lifeblood out of our economy over a period of time" would be even worse.

He called for a transition deal to be in place to avoid businesses being affected by a "cliff edge" scenario as the UK leaves.

Mr Hammond has said the UK should "prioritise protecting jobs, protecting economic growth and protecting prosperity".

Here at GTC, we welcome the news that negotiations will finally start. The uncertainty of the past 12 months can be put behind the UK now as it moves forward and stakes its intentions over the coming two years.

Ultimately, whether 'Hard, Soft or Cliff Edge' an exit is an exit and the UK cannot expect to get all of its demands met, however, neither can the EU and if the worst case scenario did happen and the UK and EU were unable to agree terms for the split, the 'Cliff Edge' situation reverts to WTO rules and would afford the UK the ability to start at the beginning, an option many believe is likely.

The next two years will be crucial to the European Union and its remaining members.

How it deals with the Brexit will set the standard for any other country contemplating leaving and will be used as a warning to many that may be considering it. The likely candidates, Greece, Italy and the like are in a far weaker position than the UK and would not fare as well currently if they looked to emulate the UK's decision to leave.

Only time will tell how Brexit will play out and the end result will undoubtedly shape the future of the UK's position globally.

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