The full 585-page Brexit draft withdrawal agreement that everyone is arguing about today is long, complex, and contains several highly contentious clauses. We’ve read it so you don’t have to. Here are some of the key takeaways:
Transition period: Britain will formally exit the EU on Friday, March 29, 2019, at which point it will cease to be involved at any level in EU decision-making. However, under the draft agreement, the UK will stay inside the bloc’s single market and remain subject to EU laws and regulations until the end of December 2020 while the two sides attempt to iron out a new trade relationship.
Irish border and customs union: There will be no hard border between Northern Ireland, which is part of the UK, and EU member the Republic of Ireland, at least in the short term. In the event of the transition period being extended beyond 2020, the draft deal commits both parties to a “backstop” solution, consisting of a “single customs territory between the (European) Union and the United Kingdom.”
Financial markets: Under the draft agreement, “entities established in the United Kingdom shall be treated as entities located outside the Union.” In practice, this is likely to result in London’s financial center being granted a level of EU market access similar to that granted to US and Japanese firms, under an arrangement known as “equivalence,” potentially jeopardizing London’s attractiveness to international financial companies.
Freedom of movement: The draft document provides protections for the more than three million EU citizens in the UK, and over one million UK nationals in EU countries to continue to live, work or study as they currently do. Crucially, “no exit visa, entry visa or equivalent formality shall be required of holders of a valid document issued” for EU and UK nationals when crossing national boarders within the bloc.
If you still can’t get enough of Brexit, you can read the full text of the draft withdrawal agreement here.