UK departure from EU set in motion with activation of exit clause
Tom Brown
29-Mar-2017
LONDON
(ICIS)–The process for the UK’s withdrawal from the EU has
begun with Prime Minister Theresa May formally notifying
European Council President Donald Tusk on Wednesday that the
country has activated Article 50, the step necessary for exit
talks to begin.
Nine months after the June referendum that saw a majority of
UK voters opt to break away from the EU, May notified Tusk of
the country’s intention to withdraw from the EU and the
European Atomic Energy Community, after the referendum result
was ratified by Parliament and received Royal Assent in
March.
In a letter to Tusk notifying the Commission President of the
activation of Article 50, the UK Prime Minister stated that
the country is seeking a “deep and special partnership”
between the country and the remaining 27 members of the
EU.
Earlier this year, May ruled out remaining in the union’s
single market, hinting that the final model for the UK’s
departure from the EU may hew closer to a “hard Brexit” than
the less extensive fractures predicted earlier in the exit
process.
May pointed to the current international political turbulence
as grounds for the EU to avoid taking a punitive stance in
exit talks.
“At a time when the growth of global trade is slowing and
there are signs that protectionist instincts are on the rise
in many parts of the world, Europe has a responsibility to
stand up for free trade in the interest of all of our
citizens,” May said.
“Europe’s security is more fragile today than at any time
since the end of the Cold War. Weakening our cooperation for
the prosperity and protection of our citizens would be a
costly mistake,” she added.
If exit talks collapse during the two-year negotiation
process, the default course would be for the UK to trade with
the EU on World Trade Organisation terms, leading to
substantially higher export and import tariffs. However, May
argued that this outcome would be negative for both sides,
and that EU and UK negotiators should work to avoid it.
With Scottish parliament backing calls for another referendum
on the country’s place in the UK, and concerns over the place
of Northern Ireland in the union due to the prospect of
increased tougher trading barriers with EU member state
Ireland, May claimed that Brexit would lead to increased
devolution of power from Westminster.
“It is the expectation of the government that the outcome of
this process will be a significant increase in the
decision-making power of each devolved administration [in the
UK],” she said.
Tusk confirmed receipt of May’s letter and the onset of the
Article 50 process in a statement on Wednesday
“In these negotiations the Union will act
as one and preserve its interests. Our first priority will be
to minimise the uncertainty caused by the decision of the
United Kingdom for our citizens, businesses and Member
States,” Tusk said.
“Therefore, we will start by focusing on all key arrangements
for an orderly withdrawal,” he added.
The European Council is expected to hold a Brexit summit on 29 April to adopt guidelines for
the upcoming talks.
The UK chemicals industry has been downbeat so far on the potential impact of
Brexit, particularly of a hard Brexit – the scenario closest
to May’s plans as set out so far – seen as a worst-case scenario.
Speaking at the International Petrochemical
Conference (IPC) in Texas this week, a UK-based distributor
said that maintaining the status quo on chemical regulations
should be a key goal for policymakers looking to safeguard
chemicals production in the country.
The formal activation of Article 50 comes on the same day as
European Commission regulators moved to block the planned
merger of UK and German stock markets the London Stock
Exchange and Deutsche Borse.
(Picture source: Mark
Thomas/REX/Shutterstock)
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