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CRS INSIGHT


Brexit at a Pivotal Moment

November 28, 2018 (IN11002)




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      De ekE Mix




Derek E. Mix, Analyst in European Affairs (dmix    . I ov, 7-9116)

UK Parliament to Vote on Withdrawal Agreement

Four months away from the United Kingdom's (UK's) expected withdrawal from the European Union (EU), discord and
uncertainty remain central themes in the analysis of Brexit. The efforts of UK and EU negotiators to reconcile a
complex set of competing interests and preferences li  pr duced a 585-page draft withdrawal agreement and a 26-
page political declaration on the future UK-EU relationship. EU leaders signed off on the deal in late November 2018,
leaving a vote by the European Parliament as the final step for approval by the EU before the March 29, 2019,
withdrawal date. In the UK, however, pronounced divisions remain about how Brexit should look. The withdrawal
agreement faces a crucial test when the UK Parliament votes on whether to approve it, a vote expected to occur on
December 11, 2018.

A Tough Sell

Securing passage in the UK's Parliament is expected to be challenging for UK Prime Minister Theresa May. The draft
agreement contains elements strongly disliked by each of the main British political factions. A transition period and the
so-called Northern Ireland backstop are particular points of contention. During a proposed transition period lasting
through 2020, which might be extended through 2022, the UK would be bound to follow all rules governing the EL
single market while the two sides negotiate their future relationship. The backstop provision would keep the UK in the
EL customs unioQn beyond the transition period unless and until the two sides agree on alternate arrangements. The
backstop was made necessary by the lack of an apparent solution to the Iriah border quQtn, with both sides intent on
avoiding a hard border (with customs checks and physical border infrastructure) between Northern Ireland and the
Republic of Ireland to preserve the peace process and extensive cross-border economic relations.

Supporters of a hard Brexit fear the transition period and backstop could lead to the UK ending up a ZxasaallatC of
the EU, bound indefinitely to EU rules in a wide range of areas (both sides would have to jointly agree to end the
backstop). The UK would gain sovereign control over immigration policy but, as a member of the EU customs union,
would be unable to conduct an independent national trade policy and conclude its own trade agreements, negating one
of the main arguments made in favor of Brexit. It also would have to accept EU economic regulations and rules in areas
such as the environment and labor market.

Skeptics of Brexit also criticize the deal as not only relegating the UK to a rule taker without a say in EU