The two main stumbling blocks for a possible extension are, as always, the UK`s ongoing commitment to implement EU legislation and (2) other financial commitments. The united Kingdom`s obligation to apply EU law during the transitional period stems from the general obligation to consider the provisions of EU law as the United Kingdom, which are applicable by the Article 2 withdrawal agreement and the provision of Article 7 of the withdrawal agreement, which refer to Member States made in EU law (applicable by the withdrawal agreement) are considered to be the United Kingdom, with the exception of participation and decision-making within the EU institutions. The EU and the UK reach a provisional agreement on citizens` rights and the financial regime of Brexit. At the end of the transition period, there will be two possible outcomes: the EU and the UK reach an interim agreement. It includes a transition period until 31 December 2020, during which all EU rules will continue to apply. It also covers the border between Ireland and Northern Ireland. Is there a way to extend the transition period or find more time to reach agreement and implementation? The IFG is more pessimistic (see pages 27 and 28 of its paper) on the issues of a “detailed framework agreement” and a longer implementation/negotiation approach, but sees a number of ways to guarantee more time in the fall. In addition to trade, many other aspects of the UK`s future relationship with the EU need to be decided. Example: The divorce agreement, which provided the conditions for the UK`s exit from the EU, extended the transition period by two years to allow more time for negotiations. The United Kingdom has no plans to extend the transition period. It has repeatedly said that it would not ask for an extension and that the UK would refuse if the EU asked for an extension.

On 22 October, the British Parliament agreed to review the Brexit Act. But she decided it took longer than the British Prime Minister had proposed. This means that it is no longer possible to withdraw with an agreement on the planned date of Brexit, 31 October. The Brexit deal will not come into force until the Brexit law is passed by the British Parliament. When a decision of the Joint Committee is taken in accordance with Article 132, paragraph 1 of the withdrawal agreement, another decision of the Joint Committee on Article 132, paragraph 3, sets out the amount of the UK`s contribution to the EU budget. Politically, this will be a difficult sell for the British government. During the transition period, the UK and the EU continue to negotiate their new relationships. This includes how EU companies can do business with the UK after the transition period. They will also negotiate security cooperation.

The government has planned a number of changes to national legislation at the end of the transition period. Current Brexit laws provide for these changes to come into force during the “full day implementation period of the IP.” This term is defined in Section 39 of the EU Withdrawal Agreement 2020 Act as 31 December 2020 at 23:00 Greenwich Mean Time. Thus, while the UK will no longer have the right to vote, it will continue to comply with EU rules during the transition period. For example, the European Court of Justice will have the final say in all disputes. The pro-Brexit camp has long argued that it will be beneficial for the economy to give the UK the freedom to implement its own trade policy – although critics say it is more important to stay close to the EU. However, the EU wants a comprehensive agreement covering all aspects of future relations, while the UK argues that there should be a number of separate agreements, including a basic free trade agreement.