EU Says No-Deal Brexit Still Likely, More Preparedness Work Remains to Be Done

As the European Union continues its “extensive preparations” for a no-deal withdrawal of the United Kingdom on Nov. 1, stakeholders should take advantage of the extra time granted by recent Brexit delays to ensure they have “taken all necessary measures” to prepare, the European Commission said in a June 12 press release.

According to the EU’s fifth Brexit Preparedness Communication, also released June 12, all necessary changes to laws and regulations are already in place, and no more changes are necessary before the Brexit deadline. A no-deal withdrawal on that deadline “very much remains a possible, although undesirable, outcome,” particularly “in light of the continued uncertainty in the United Kingdom regarding the ratification of the Withdrawal Agreement” and the U.K.’s overall domestic political situation, the press release said.

Given the large number of traders affected, it’s hard to determine the exact level of preparedness for disruptions to customs procedures that would occur as a result of a no-deal Brexit, the communication said. The number of EU Economic Operator Registration and Identification numbers granted “increased significantly” from February to March 2019, as did the number of applications for Authorized Economic Operator status.

These trends “indicate that stakeholders are increasingly prepared in the context of customs procedures, but do not mean that all necessary preparedness measures have been taken,” the communication said. “In particular, EORI number attribution and AEO status are only some of the actions needed for economic operators to prepare for a no-deal scenario.”

The report said most medicines that have been authorized by the European Medicines Agency have been “brought into regulatory conformity” for a no-deal Brexit. However, “more work remains to be done” for medicinal products authorized at the national level. For chemicals, as of the end of April, only 463 REACH registrations had been transferred to EU member states, while 718 remained registered only by registrants established in the U.K., the press release said.