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This fact was correct when it was updated on 23 Sep 2020

What is a ‘no deal Brexit’?

A ‘no deal Brexit’ initially referred to the possibility of the UK leaving the EU without a Withdrawal Agreement in place. The government, and the EU, implemented several measures to prepare for no deal, which was expected to cause substantial disruption to trade flows between the UK and the EU. After a Withdrawal Agreement was reached in October 2019, which was approved by the UK Parliament in January 2020, the UK left the EU with a deal on 31 January 2020, avoiding a no deal Brexit. However, the Withdrawal Agreement only dealt with issues to do with the UK’s exit from the EU. The future relationship is subject to negotiations, and if no deal is reached by the end of the transition period there could still be a scenario in which there is no future relationship agreement, which would likely cause a similar degree of disruption.

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