February 5, 2018

The letter states that the purpose of the implementation period is to give people, businesses, and public services in the UK and across the EU the time they need to put in place the new arrangements that will be required to adjust to the future partnership. It says that the Government is “clear that the UK’s and the EU’s access to one another’s markets should continue on current terms”, meaning there will only be one set of changes at the end of the implementation period, as the UK moves into its future partnership with the EU. The letter also states that the period’s duration will be strictly time-limited and determined by how long it will take to make the changes. This will be around two years.

The letter emphasises three key aspects of the implementation period:

• in order that the terms of trade remain unchanged during the implementation period, it will need to be based on the existing structure of EU rules and regulations. The Government will therefore maintain continuity with rules during the period;
• the intention is to “mimic the breadth of our current arrangements”, so that all businesses will be able to go on trading with the EU as it does today until it is time to make any changes necessary for the future partnership; and
• EU citizens will continue to be able to come and live and work in the UK, with no new barriers to taking up employment. The UK will introduce a registration scheme for new arrivals in preparation for its future immigration system, but this will not place any new burdens on businesses during the implementation period.

The letter stresses that the core purpose of the implementation period is to ensure that people and businesses have sufficient time to prepare for the future by maintaining continuity in the UK’s trading arrangements with the EU immediately after withdrawal.

The letter concludes by saying that both the UK and the EU want to agree the detail of the implementation period by the end of March 2018. The text of the Withdrawal Agreement will then be finalised to give the implementation period legal form. To read the letter in full, click here.