What does the proposed Brexit Withdrawal Deal mean for the tech industry?
What does the proposed Brexit Withdrawal Deal mean for the tech industry? U.K. Prime Minister Theresa May announced November 14, 2018, that the U.K. Government has reached an agreement with the European Union on the initial stages of how the U.K. will exit the EU.
It is not a done deal, however, until the U.K. Parliament and the EU Parliaments have ratified it. If this proposed Withdrawal Agreement does get the go ahead—and this is very uncertain as there is huge opposition to it among U.K. members of parliament—it essentially gives U.K. business and, therefore, by default the U.K. tech industry, a bit of breathing space.
The tech industry in the U.K. is quite reliant on EU workers. If the U.K. leaves the EU without a deal, then many of these workers would no longer have leave to remain in the U.K. and there would be a brain drain. The Draft Withdrawal Agreement will allow EU tech workers already working in the U.K. leave to remain in the country, so that would help to avoid this. But, already, many EU workers, worried about their future in the U.K., have left for more secure jobs elsewhere. Their skills are highly in demand, so these are easy to find.
The Draft Withdrawal Agreement also allows free trade to continue between the EU and the U.K. at least until the end of the transition period, currently scheduled to end at the end of 2020, but with the possibility of an extension. This gives tech companies the ability to continue to trade within the EU without facing tariffs and additional regulations. Tech companies bring in component parts from all over the EU, and in the event of a No-Deal Brexit each of these parts could require different tariffs. There is no guarantee that this has been avoided for the long term, but for the very short term at least, if this Agreement is ratified, tech companies have been given some respite.
And respite is really what this Agreement is all about, not just for tech companies, but for every faction of U.K. business.