UK: May to trigger Brexit in March 2017

Theresa May has ended weeks of speculation and revealed that she will trigger article 50 andlaunch formal Brexit talks with EU leaders, before the end of March 2017. The timing means the UK looks set to leave the EU by summer 2019.

Mrs May made it clear that border controls are a red line in the Brexit negotiations, saying that “we are not leaving the European Union only to give up control of immigration again”.

"We will do what independent, sovereign countries do. We will decide for ourselves how we control immigration. And we will be free to pass our own laws."

A number of EU leaders have repeatedly said that Britain will get no access to the single market unless it continues to adopt freedom of movement rules, allowing all European citizens to live and work in the UK.

Pound drops
The effect of announcement was seen immediately in the money markets with the pound being the worst performer among major currencies, down 0.3 per to $1.2938 as of 6:46 am in London. This was the currency’s lowest performance since August 16.

At the time of the referendum, members of the fresh produce industry reacted with shock to the outcome. Although immigration was a main issue in the referendum, growers expressed major concerns as to who would pick and pack the fruit if borders were closed.

Importers feared price increases due to extra duties and paperwork at the borders, while exporters outside the EU were hopeful that a UK outside the EU would ease import regulations for their fruit and veg.