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Brexit Amendments: The Future of EU - UK relations

The UK Parliament voted in favour of undefined alternative solutions to the Irish Backstop, just a few months before Brexit.

The Members of the British Parliament have voted to replace the Irish Backstop laid out in Theresa May’s deal with alternative solutions. With Brexit just two months away, the exact terms of this amendment to the Irish Backstop has not yet been defined.

The Labour Party’s push to delay Brexit, in a last effort to avoid a no-deal Brexit and the corresponding negative effects on UK commerce, was rejected. Support to extend Article 50 was declined on the basis that delaying Brexit would not provide any solution to the main issues being negotiated. The rejection stems from fears that delaying Brexit would lead to a second referendum or no Brexit at all, and would make a farce of UK democracy. The European Parliament, although open to a reasonable extension, may also not be too keen on delaying Brexit as, with EU elections set to be held in May, any postponement of Brexit would qualify the British to take part.

Despite the British Parliament’s stance against delaying Brexit, the House of Commons has voted towards eliminating a no-deal Brexit. This comes in light of amendments proposed by Members of Parliament for a softer Brexit. However, with a replacement to the Irish Backstop being the main concern as to whether a deal is guaranteed and the EU being adamant that it would not renegotiate the terms of May’s agreement, it may be unlikely that such a solution would materialise.

As always with Brexit, uncertainty is still the matter most agreed upon. UK-based businesses are continuing to seek alternative solutions in case of a hard Brexit. With major corporations such as Airbus and Bank of America Corp reported to be making plans to move operations away from the UK, major UK industries may suffer greatly. Small and medium enterprises are the most likely to be affected in the case of a no-deal Brexit as default trade agreements could mean tariffs and production costs as well as delays in daily operations.

A member of the European and the Commonwealth, the island of Malta offers UK-based businesses post-Brexit solutions to maintain control of the market as a jurisdiction with close ties with Britain as well compliant with EU regulation. For more information on the benefits Malta provides amidst Brexit uncertainty, join Chetcuti Cauchi’s specialised industry webinars: click here

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