‘Cautious’ optimism follows Mansion House speech

Lawyers have welcomed prime minister Theresa May's Mansion House speech on Brexit, in which she set out more detail on the UK’s position.

In the speech, last week, May rejected membership of the single market and customs union, but gave a commitment that ‘UK and EU regulatory standards will remain substantially similar’. EU27 leaders will discuss Brexit at the next EU summit on 22 March.

Hogan Lovells partner Charles Brasted said May had set out ‘a credible basis for negotiation’.

‘She accepts in terms that, where the EU or UK choose to move away from regulatory alignment, that will come with consequent losses in access to each other's markets,’ he said.

‘That is one of the "hard facts" for both sides, and the ball is now in the EU's court.’

Brasted said May had elaborated on the UK’s ‘three buckets’ approach and confirmed a clear desire for the UK to be associate members of EU agencies in the aviation, medicines and chemicals sectors, acknowledging that that means following their rules, paying their bills and accepting the remit of the European Court of Justice (ECJ). Strikingly the Prime Minister specifically called out areas such as broadcasting, which have not previously been addressed in free trade agreements, meaning any agreement reflecting the UK's position would need to break new ground.’

Giving the speech a ‘cautious welcome’, Law Society president Joe Egan highlighted the importance of mutual recognition of qualifications for solicitors and barristers.

‘Irrespective of Brexit, English and Welsh law is a globally recognised product which oils the wheels of global commerce.

‘But we also know that in all but one of its free trade agreements with non-EU states, the EU27 has not opened up its legal services markets. Barring solicitors and barristers qualified in this jurisdiction from advising clients in the EU27 would be bad for UK PLC—to which our sector contributes well over £26bn each year.

‘During her speech, the UK Prime Minister Theresa May indicated a focus on areas like company law and intellectual property protections and we welcome this.’ He reiterated his support for a ‘sensible’ transition period.