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Sea lawyers Ince & Co chart course to Brexit starting in October

LONDON law firm Ince & Co with long history in shipping outlined the steps to be taken to have the United Kingdom leave the European Union after the Brexit referendum showed a majority voted to quit the EU.

"While some constitutional experts have expressed doubt that a referendum vote is legally binding on a UK Government, there is no doubt that, politically, the present UK Government has no option but to respect the popular will and start the process for the UK to leave the EU," said the Ince & Co brief.

After a new Conservative leader, and therefore Prime Minister is selected in October at the Tory party conference, he or she will submit notice to leave the EU at the next EU Council of Ministers meeting.

This starts the process leaving in October 2016 and may be completed by October 2018, unless the UK and the remaining 27 member states agree to extend the period.

The process requires a two-year period of exit negotiations, which can be extended by agreement, during which the process of disentangling 40 years of EU treaties, agreements and laws are effected.

Rules attendant to two treaties come into play: the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU).

Article 50 TEU provides that the departing country must give notice of its intention to leave the EU to the European Council (the EU institution where the heads of government of the 28 Member States are represented).

"There then begin the negotiations for exit which are conducted by the European Commission.

"The concluded Treaty of Withdrawal is then put to a vote of the remaining member states acting by a majority of at least 72 per cent of the members of the council representing member states comprising at least 65 per cent of the population.

"So two thirds of the EU's population as represented by their heads of government in the Council must approve the exit deal, which also requires the consent of the European Parliament.

"But what 'consent' means is not defined, says the Ince paper, which does not say what the result would be if the vote goes against the UK.

If two years prove insufficient to conclude the negotiations, then the parties can agree to an extended period, but the vote must be unanimous.

The UK cannot vote in the European Council on matters relevant to the negotiations for exit, nor it is likely that Britain can serve in the council presidency.

Constitutionally, EU law is transposed into UK domestic law by the European Communities Act 1972 (ECA). Thus when the EU Council adopts a regulation or a directive, the ECA provides a mechanism for the new EU law to become incorporated into UK domestic law.

The ECA will only be repealed as from the date of withdrawal from the EU and all European rights and obligations will remain in force.

All companies trading with the UK and the EU will continue under EU law. For example, any exporter to the EU will be obliged to satisfy EU standards and regulations and commercial agreements.