After almost half a century as an European Union
("EU") member, the UK left the EU on January 31, 2020
("Brexit"). With the UK's exit, much remains
uncertain and yet to be negotiated. Depending on the outcome of
these negotiations, Brexit may have a major impact on businesses
invested in and reliant upon a predictable and certain Canada-EU
trade relationship.
This bulletin highlights the immediate commercial impact of
Brexit and what changes can be expected in the coming months,
including the possibility of a new trade agreement with Canada.
The Transition Period
The UK's exit is governed by a withdrawal agreement
negotiated between the UK and the EU (the "Withdrawal
Agreement"). Part Four governs the transition period during
which the UK remains part of the EU's single market and customs
union. This allows the UK to also benefit from
EU trade agreements. However, the UK will not be able to vote on or
negotiate changes to existing or new EU rules. The
