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United Kingdom : Govt. clarifies further likely impact of Brexit on current EU law obligations

Publish Date : 23-Jan-2017

In an original June 2016 briefing on the potential impact of Brexit on public procurement and State aid law several prospective post-Brexit scenarios were set out, concluding that the extent to which Britain's exit from the EU would affect procurement and State aid legislation eventually depended on whether the country would maintain access to the Single Market, or indeed parts of the Single Market.

Since then, there have been several statements from the Government clarifying further the likely affect of Brexit on current EU law obligations, including as regards State aid and public procurement.

One of the major statement was in the Prime Minister's speech on 17th January 2017 that clarified that the Britain was not looking to remain a member of the Single Market after Brexit. Instead, it would seek a "comprehensive free-trade agreement" that should enable the "freest possible trade in goods and services between Britain and the EU's member states."

The Prime Minister simultaneously repeated a commitment initially made on 5 October 2016: the introduction of a "Great Repeal Bill". This will repeal the European Communities Act 1972 (ECA), which is the legislation giving EU law direct effect in Britain, and convert the body of current EU law (including case law) into domestic legislation.

This is also to say that the plan is that there should be some form of continuity so that, as far as possible, from the first day of Brexit the same laws apply in the country as before Britain's exit from the EU.

But, it would be for the UK Courts, instead of the Court of Justice of the EU, for example, to decide the way this body of "domesticated" law should be interpreted. Over time, the British Government can then determine whether to revise or repeal specific legislation, based on priorities, its new relationship with the EU and other global commitments.

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