No Deal Brexit:

Overcoming potential barriers in commercial law

No Deal Brexit:

Overcoming potential barriers in commercial law

On 15 January the British House of Commons rejected the Brexit agreement regulating a transitional period that had been negotiated by its government with the EU. Should the EU and Britain fail to agree on another version or on an extension of the deadline until Britain leaves the EU (“no-deal scenario”), then as of the end of October 2019 the EU and Great Britain will have the same commercial trading status with each other as that of other WTO members among each other – without a specific trade agreement.

The EU and Great Britain fear additional costs in an amount of 69 billion Euro through customs duties and regulatory trade barriers. This corresponds to 15 percent of the annual goods trade between the EU and the United Kingdom. Furthermore, 60 percent of German small companies and microenterprises have no procedures in place for non-European trade.

In future, the trade of goods between the EU and UK will trigger not only customs duties, as these goods are no longer being supplied within the Community. A number of simplified procedures in the legal relations between the EU and UK will also be lost, and enterprises will have to prepare themselves accordingly. Below, we have summarised several of the most urgent legal problems and possible solutions in cross-border corporate law:

Your contact

Christof Gaudig

Christof Gaudig

Partner

Tel.: +49 221 2091 498
Email: Christof.Gaudig@oppenhoff.eu

Urgency of the need to act

High

Immediate need for action

Medium

Adaptation to changed processes or legal situation

 

Little

Need for action

 

Please select a level of urgency:

Antitrust law

Antitrust law

Drifting apart of EU and UK antitrust law: additional observation of UK antitrust law required for measures which (also) have consequences in the UK.

Solution »

Antitrust law

Antitrust law

Parallel merger control notification of transactions to the EU Commission and the British cartel authorities required.

Solution »

Banking law

Banking law

Investment companies in the UK lose free market access to the EU.

Solution »

Chemicals (import)

Chemicals (import)

Ban on imports of chemicals without EU obligor.

Solution »

Contract law

Contract law

Interpretation difficulties due to loss of recourse to EU Directives.

Solution »

Contract law

Contract law

Delays in the supply chain, in particular in "just in time" contracts.

Solution »

Corporate law

Corporate law

Loss of recognition of a Limited with administrative seat in Germany.

Solution »

Data protection law

Data protection law

UK becomes a third country within the meaning of the GDPR: ban on access from Great Britain to EU corporate data relating to individuals.

Solution »

Data protection law

Data protection law

UK becomes a third country within the meaning of the GDPR : enterprises may no longer automatically pass on personal data to British enterprises.

Solution »

Dispute resolution

Dispute resolution

Enforcement measures more difficult after leaving the EU.

Solution »

Employment law

Employment law

Loss of recognition of a Limited with administrative seat in Germany.

Solution »

Employment law

Employment law

Limited flexibility of the deployment of personnel.

Solution »

Employment law

Employment law

Loss of the participation of British employees in cross-border employee bodies.

Solution »

Export controls

Export controls

Export controls also apply to machine tools, chemicals, semiconductor technology, particularly high-performance computers, sensors, lasers, etc.) as well as the pertaining software and technology.

Solution »

Insurance law

Insurance law

UK insurances may no longer operate in EU territory.

Solution »

Intellectual property law

Intellectual property law

Applicability of Community marks in the UK no longer/not yet guaranteed.

Solution »

Subsidies / state aid

Subsidies / state aid

Measures of an EU member state which could selectively favour UK enterprises but are still subject to EU state aid law.

Solution »

Subsidies / state aid

Subsidies / state aid

Ban on state aid: measures of the UK as a third country no longer fall under EU state aid law (exceptions).

Solution »

Succession

Succession

No loss of preferential inheritance tax treatment in cases of corporate succession for past cases; future corporate successions must be structured accordingly.

Solution »

Waste management

Waste management

Ban on the cross-border shipment of waste.

Solution »