<\/a><\/p>\n Following the referendum held on Thursday, June 23, 2016 to decide whether the UK should leave or remain in the European Union, the entire world questioned what Britain\u2019s exit from the EU would actually entail for British \u2013 and global \u2013 businesses. While there are many moving parts still up in the air, one thing is certain: Britain will have to reach a new trade agreement with the European Union. This task will be highly complex and be carried out under the immense pressure of a two-year deadline.<\/p>\n <\/p>\n Once the United Kingdom\u2019s formal decision to leave the European Union was notified to the European council of EU leaders, under article 50 of the Libson treaty<\/a>, the UK was given a formal notice of leave from the EU. Article 50 demands a two-year timeframe for the UK to renegotiate a new legal basis for trade relationships with the remainder of the EU (however, it does enable an extension if needed).<\/p>\n <\/p>\n The trade discussions must consider the framework for exporting and importing goods, like food and cars, two very important imports and exports for the UK, and the basis for continued services trade, such as legal advice on a big company takeover to and from the EU. Britain\u2019s trade negotiations also must ponder changes to customs procedures, passport controls for business travel, and regulation on safety standards, health and environmental issues.<\/p>\n <\/p>\n All the aforementioned decisions, however, are contingent upon whether or not Britain undergoes a \u201chard\u201d or \u201csoft\u201d Brexit<\/a>, said BBC News<\/em>. \u00a0Hard and soft are terms that were used increasingly in \u00a0debates focused on the circumstances of the UK\u2019s departure from the EU. While there is no concrete definition for either term, they are commonly used to refer to the closeness of the UK\u2019s continued relationship with the EU following Brexit. On one end of the spectrum, a \u201chard\u201d Brexit would entail the UK refusing to comprise on issues like the free movement of people, even if it meant leaving the single market. On the other extreme, a \u201csoft\u201d Brexit would more closely resemble Norway, which holds a single market (as opposed to a common market with free trade) and is forced to accept the free movement of people as a result.<\/p>\n <\/p>\n