On April 4, the House of Commons Exiting the European Union Committee published a report on the future UK/EU relationship following the United Kingdom’s withdrawal from the European Union. The report examines existing EU relationships with Canada, Ukraine, Switzerland, Norway and Turkey, the impact of trading on World Trade Organization terms (i.e., without a trading agreement in place), and the United Kingdom’s future relationship with the European Union.

The report set outs certain tests by which the committee will judge the political declaration it expects to be reached by October. Notable examples include:

  • any new immigration arrangements set up between the United Kingdom and the European Union must not act as an impediment to the movement of workers providing services across borders or to the recognition of their qualifications and their right to practice;
  • there must be no additional costs to businesses that trade in goods or services;
  • UK providers of financial and broadcasting services must be able to continue to sell their products into EU markets as at present; and
  • UK providers of financial and other services should be able to retain automatically, or with minimal additional administration, their rights of establishment in the European Union, and vice versa, where possible on the basis of mutual recognition of regulatory standards.

The report concludes that the Comprehensive Economic and Trade Agreement between the United Kingdom and Canada could be a starting point for the UK-EU agreement, but that it would require significant additions to reflect that the United Kingdom and European Union markets are “already very much more integrated.”

The report is available here.