Brexit implications for shipping. INTERTANKO European Panel. Luisa Puccio and Rhiannon Ducas ADS Insight Bergen, 18 September 2018

Transcription

1 Brexit implications for shipping INTERTANKO European Panel Luisa Puccio and Rhiannon Ducas ADS Insight Bergen, 18 September 2018

2 Brexit Key Dates Article March YOU ARE HERE! UK Leaves EU 29 March Referendum 23 June Sufficient Progress End of Transition December 2017 Agreement on Withdrawal Agreement and Future Relationship? October or November 2018

3 What has been achieved so far? December 2017 EU-UK report on sufficient progress covering main divorce issues (to be transformed into legally binding text called the Withdrawal Agreement) Citizens rights: rights of EU citizens already living in the UK (and vice versa) will remain the same Financial settlement: no firm figure but an agreed methodology for calculating it Ireland: no hard border Northern Ireland and Ireland March 2018 Agreement on parts of Withdrawal Agreement, including on transition (a 2-year period until end December 2020 during which EU law will continue to apply) BUT : nothing is agreed until everything is agreed

4 What comes next? October/mid-November 2018 final Withdrawal Agreement (with transition arrangements) and broad political declaration about the future relationship (NOT a full trade deal) End 2018/beginning 2019 vote by the UK Parliament, the European Parliament and Council

5 Possible scenarios (simplified) BREXIT UK withdraws in March 2019 with an Agreement and transition period EU law will cease to apply to and in the UK on 1 January 2021 NO DEAL UK withdraws in March 2019 without an Agreement or transition period EU law will cease to apply to and in the UK as of 30 March 2019 (i.e. cliff edge) NO EXIT UK has a change of heart. All sorts of consequences. New negotiations needed. 5

6

7 Consequences of a No Deal Brexit Regulatory issues with the UK as a third country, all EU laws cease to apply Trade - WTO rules would apply, tariffs would be imposed on EU goods sent to UK and vice-versa, businesses lose passporting rights (no selling services across EU without a license from each country) Citizens EU nationals in the UK and UK nationals in the EU would be third country nationals subject to domestic immigration rules (for e.g. visas, work permits, etc) Customs all foreign goods entering UK will have to go through UK custom checks, even those coming from EU countries (congestion in ports) EU funding UK entities cease to be eligible for EU grants and EU procurement procedures

8 Consequences of a no deal Brexit on shipping Seafarers: issue with recognition of certificates issued by the UK/ third-country certificates recognised by the UK According to Commission (and UK), endorsements attesting recognition will not be automatically recognised Maritime security: issue with security vetting of UK inspectors, and exemption from providing security information no longer possible According to Commission (and UK), ships operating between UK and EU will have to submit security information at each port call, and UK-vetted security inspectors would no longer be able to carry out checks under the EU security Directive (port and vessel security) Ship recycling: issue with UK yards accepted on to EU list of approved yards According to Commission, EU flagged ships will not be able to recycle their ships in UK yards unless those yards re-apply to be on the EU list as a third-country, also de facto, UK registered ships no longer obliged to recycle in EU-approved yards Class societies: issue with periodic assessments carried out by UK (when original sponsor) According to Commission, no issue foreseen with the actual recognition of ROs originally sponsored by the UK (LR/ABS), but new proposal has been put forward about who will carry out periodic assessments together with the Commission when UK was original sponsor of RO Other: tonnage tax, EU NAVFOR headquarters change, new maritime route linking continent with Ireland, funding, cabotage, PSC, visas, IMO coordination, notified bodies and insurance, MRV

9 Unless it s all just a misunderstanding

10 .and Brexit means...breakfast?! You Tube compilation

11 THANK YOU