Corporate Social Responsibility: September 2017

BREXIT: CHANGES AND CHALLENGES

As ROUND 3 of Brexit negotiations commences this paper highlights some major positive and negative changes that have taken place; and the changes expected sooner or later as well as challenges facing them.

The first legal impact of Brexit is the shock of stripping UK of all the benefits of EU nations, especially the rights accruing from European Economic Area Act 1993(EEA). To avoid the greatest economic, diplomatic and constitutional problem supporters of staying in the EEA at least temporarily believe it is the best model for providing certainty for businesses without EU membership. The UK is a member of the EEA by virtue of membership of the EU.

This provisional arrangement, which would avail UK with the advantages of the single market and largely persist with free movement, would give UK breathing space. Presently members of the EEA are part of the EU’s single market; existing non-EU members include Norway and Iceland. If they succeed with this submission the transitional period would end in March 2019 and for at least a few years after Brexit. Some Labor and conservative MPs have demonstrated support for this submission.

Apparently the success of the above submission would provide escape route from a possible return to WTO rules for trade between the two markets; high customs duties, burdensome controls and high transport costs. But the snag remains that EU treaties provides that there can be no trade deal until the UK leaves the EU. So chicken and egg, which one comes first?

UK jobs, Work Permit and Visa

UK Immigration Policy is geared towards tight control. Prime Minister May has also committed to a long-term numerical cap for 100,000 net migration to the UK. For applicants to UK to include a requirement for migrants to have a firm job offer before being granted entry to the country. Besides the usual requirement that the applicant at the date of the application must be 18 years old with valid international passport expiring not less than five months time; bank statement of account is also required to ascertain the viability of the source of sustainability.

It is speculated that UK would be divided according to labor target areas. The visa would allow for migrants to be able to work in areas of labor shortages but would not entitle them to seek for employment in other areas of the UK

According to experts EU fishing boats can still operate in UK waters after Brexit. One of the implications is that UK lost some rights even after leaving EU. Farmers say the UK produces only 60% of its own food therefore must increase production to forestall food insecurity after leaving the EU. This may trigger off demand for farm and agriculture workers.

France has commenced review of its Labor Laws to make is easier for job seekers to comply with the extant regulations. Besides other EU cities are gearing up to take the role UK cities played during their sojourn in the EU.

UK Border controls as she leaves EU market

Leaving the EU is UK’s long term political commitment as well as leaving European Court of Justice (ECJ). Coming with that will be the imposition of greater controls on immigration and trans-border commercial transactions. This scenario presents a difficult time for UK and EU nations, especially regarding existing policies on electricity, gas and other energy issues. So expecting changes in these areas would make common sense by prospective business people.

According to the guidance issued by the UK Financial Conduct Authority, Six months “processing time” required by the new Market in Financial Instrument Directive that “to be sure that we can determine an application in time for January 3, 2018, it needs to be complete by July 3, 2017”. This is for both domestic and cross border businesses. The compliance of this policy change is to be enforced by European Securities Market Authority.

One member of UK parliament commented on the necessity for these imminent changes that the situation with the status quo appears defective because it “dismantles the apparatus of the single market and the customs union and it extinguishes any role for the European Court of Justice”.

Citizenship

However, Barnier an MP said, a stumbling block remained the issue of whether the rights of EU nationals in the UK would be overseen by the European court of justice, something Theresa May has ruled out. UK negotiators have been advised to be more flexible and imaginative on the issue of citizenship. This follows the decision of Brussels that British citizens living in EU nations could lose their rights after Brexit.

Pending UK judicial processes are still subject to European Court of Justice until such changes that are being proposed the Brexit bill.

Iyke Ozemena

Attorney

IKECHUKWU O. ODOEMELAM & CO

Corporate Attorneys/Consultants

#BREXIT

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Corporate Social Responsibility: BREXIT: CHANGES AND CHALLENGES

BREXIT: CHANGES AND CHALLENGES