AIRLINK 79.41 Increased By ▲ 1.02 (1.3%)
BOP 5.33 Decreased By ▼ -0.01 (-0.19%)
CNERGY 4.38 Increased By ▲ 0.05 (1.15%)
DFML 33.19 Increased By ▲ 2.32 (7.52%)
DGKC 76.87 Decreased By ▼ -1.64 (-2.09%)
FCCL 20.53 Decreased By ▼ -0.05 (-0.24%)
FFBL 31.40 Decreased By ▼ -0.90 (-2.79%)
FFL 9.85 Decreased By ▼ -0.37 (-3.62%)
GGL 10.25 Decreased By ▼ -0.04 (-0.39%)
HBL 117.93 Decreased By ▼ -0.57 (-0.48%)
HUBC 134.10 Decreased By ▼ -1.00 (-0.74%)
HUMNL 7.00 Increased By ▲ 0.13 (1.89%)
KEL 4.67 Increased By ▲ 0.50 (11.99%)
KOSM 4.74 Increased By ▲ 0.01 (0.21%)
MLCF 37.44 Decreased By ▼ -1.23 (-3.18%)
OGDC 136.70 Increased By ▲ 1.85 (1.37%)
PAEL 23.15 Decreased By ▼ -0.25 (-1.07%)
PIAA 26.55 Decreased By ▼ -0.09 (-0.34%)
PIBTL 7.00 Decreased By ▼ -0.02 (-0.28%)
PPL 113.75 Increased By ▲ 0.30 (0.26%)
PRL 27.52 Decreased By ▼ -0.21 (-0.76%)
PTC 14.75 Increased By ▲ 0.15 (1.03%)
SEARL 57.20 Increased By ▲ 0.70 (1.24%)
SNGP 67.50 Increased By ▲ 1.20 (1.81%)
SSGC 11.09 Increased By ▲ 0.15 (1.37%)
TELE 9.23 Increased By ▲ 0.08 (0.87%)
TPLP 11.56 Decreased By ▼ -0.11 (-0.94%)
TRG 72.10 Increased By ▲ 0.67 (0.94%)
UNITY 24.82 Increased By ▲ 0.31 (1.26%)
WTL 1.40 Increased By ▲ 0.07 (5.26%)
BR100 7,526 Increased By 32.9 (0.44%)
BR30 24,650 Increased By 91.4 (0.37%)
KSE100 71,971 Decreased By -80.5 (-0.11%)
KSE30 23,749 Decreased By -58.8 (-0.25%)
World

Brexit transition headache has EEA painkiller fix

LONDON: The UK's Brexit transition quandary might have a workaround.
Published November 28, 2016

imageLONDON: The UK's Brexit transition quandary might have a workaround. Courts could rule that when Britain quits the European Union it can stay part of the European Economic Area, a wider group that includes Norway, Iceland and Liechtenstein.

Properly handled, it could help Britain disentangle itself from the EU without shooting itself in the foot.

One of the biggest headaches for UK negotiators is a two-year countdown to exit once the government gives formal notice of its intention to leave, as Prime Minister Theresa May has pledged to do by March 2017.

Comparatively simple negotiations - including tiny Greenland's exit in the 1980s - took much longer than two years to conclude, so it seems certain that the UK needs a transitional arrangement to avoid a "cliff-edge" scenario where it leaves without new trade agreements in place.

A new court case could help. The think tank British Influence is planning to contest the government's position that Brexit means automatically leaving the EEA, which gives members access to the single market.

If the challenge succeeds, the UK could fall back on EEA membership as a temporary remedy once the two-year clock is up, rather than striking a transitional arrangement with Europe from scratch. Doing so would merely require Europe to not disagree, rather than thrash out a specific transition period which could prompt criticism at home.

The rub is that hardline Brexiteers would find continuing EEA membership hard to swallow, because it curtails the government's ability to control immigration.

This group views anything less than a clean, quick break as a betrayal of the narrow majority that voted to leave.

There's a simple enough compromise. May is already facing a legal challenge over her ability to trigger the start of Brexit, which could see her forced to give lawmakers in parliament a vote on the matter.

She could attach a clause to any parliamentary bill guaranteeing that the UK will leave the EEA at a specific point in the future.

Assuming the process of Brexit kicks off in March 2017 at the latest, an EEA exit date of 2025 would give negotiators a more realistic timetable than the current two years - and a chance that an EU-less UK is something other than a corpse.

Copyright Reuters, 2016

Comments

Comments are closed.