Luke Walden, Business Development Manager at OSTC FX provides a round-up of Theresa May’s Brexit Plan.
Yesterday saw Theresa May finally lay out her long-awaited plan to the wider world on how best she sees the UK exiting the EU. Much speculation had been made around what she would say with buzz words of ‘soft’ and ‘hard’ Brexit being banded around. These are, of course, just words. Finally, we were to hear what actions were to be taken.
Sterling had weakened heavily against the Euro leading up to yesterday’s speech. Thoughts were that May would veer on the side of ‘hard’ Brexit – that is to say a complete detachment from the EU and the single market.
May has announced a split from the single market, but it has to be said that all in all, she didn’t pull any rabbits out of any hats. Detachment from the single market was expected by many. The Pound has since retraced quite a bit from the lows made on Monday maybe suggesting that the sell-off was overdone.
Some analysts are warning not to get carried away however and envisage a long and bumpy road from when Theresa May invokes Article 50 in two months’ time. Clearly there are numerous hurdles ahead and it is very hard to see how the process is going to take only two years to complete.
It will be interesting over the coming months, and indeed years, how closely Theresa May and her government manage to stick to the plan. Her 12-Point List is below.
Theresa May’s 12 objectives for negotiations:
“The first objective is crucial. We will provide certainty wherever we can.”
2. Control of our own laws:
“That means taking control of our own affairs, as those who voted in their millions to leave the European Union demanded we must.”
3. Strengthen the Union:
“A stronger Britain demands that we do something else – strengthen the precious union between the four nations of the United Kingdom.”
4. Maintain the Common Travel Area with Ireland:
“We cannot forget that, as we leave, the United Kingdom will share a land border with the EU, and maintaining that Common Travel Area with the Republic of Ireland will be an important priority for the UK in the talks ahead.”
5. Control of Immigration:
“We will ensure we can control immigration to Britain from Europe.”
6. Rights for EU nationals in Britain, and British nationals in the EU:
“Fairness demands that we deal with another issue as soon as possible too. We want to guarantee the rights of EU citizens who are already living in Britain, and the rights of British nationals in other member states, as early as we can.”
7. Protect workers’ rights:
“A fairer Britain is a country that protects and enhances the rights people have at work.”
8. Free trade with European markets:
“That starts with our close friends and neighbours in Europe. So as a priority, we will pursue a bold and ambitious Free Trade Agreement with the European Union.”
9. New trade agreements with other countries:
“But it is not just trade with the EU we should be interested in. A Global Britain must be free to strike trade agreements with countries from outside the European Union too.”
10. The best place for science and innovation:
“A Global Britain must also be a country that looks to the future. That means being one of the best places in the world for science and innovation.”
11. Cooperation in the fight against crime and terrorism:
“And a Global Britain will continue to cooperate with its European partners in important areas such as crime, terrorism and foreign affairs.”
12. A smooth, orderly Brexit:
“These are our objectives for the negotiation ahead – objectives that will help to realise our ambition of shaping that stronger, fairer, Global Britain that we want to see.”
At OSTC FX, we continue to encourage our clients to regularly analyse their own cash flow and foreign exchange requirements and make sure they plan accordingly. We are always on hand to offer our extensive expertise to limit exposure and ensure that clients are aware of all available strategies throughout this tumultuous period.
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