A “decisive step” has been taken on the road to agreeing a deal on the implementation period, according to the EU and UK negotiators Michel Barnier and David Davis.
The transition agreement, which is conditional on both sides coming to an agreement on a final withdrawal treaty, is designed to streamline the path to a future permanent relationship.
The deal agreed in Brussels this month includes these key points:

• A transitional period that will last from Brexit day on 29 March 2019 to 31 December 2020.

• The ability for the UK to negotiate, sign and ratify trade deals that affect the country during this period.

• Confirmation that EU citizens arriving in the UK between during this time will enjoy the same rights and guarantees as those who arrived before Brexit. These rules will also apply to UK expats travelling to the EU.

• The UK will still remain party to existing EU trade deals with other countries.

However, two points have caused controversy among certain sections of UK society, these include:

• Avoiding a hard border with the Republic of Ireland by effectively allowing Northern Ireland to stay in parts of the single market and the customs union.

• The UK remaining part of the Common Fisheries Policy, yet without a direct say in its rules, until the end of 2020. During this period the share of the fishing catch will be guaranteed.

This still leaves a number of issues to be fully resolved including the nature of the Northern Irish border.
Talking after the agreement was made, Mr Barnier said the legal text was “not the end of the road” but signified a “decisive step”.
In a letter to the European Council President Donald Tusk, the prime minister said: “Both the UK and the EU hope the terms of the agreement on the transitional period will be signed off by the 27 leaders at the EU summit during a meeting in March.”
It is understood that a number of improvements to the text where made by the UK negotiators, including an explicit reference to Gibraltar being covered by the agreement and the creation of a joint committee to oversee the process.
Mr Davis said: “We must seize the moment and carry on the momentum of the last few weeks.
The deal should give us confidence that a good deal for the UK and EU is closer than ever before.”
It is hoped that once the transition deal is agreed negotiators can move on to discussing the permanent future relationship between the UK and EU.
If both sides progress as planned it is hoped that a final deal can be agreed by the autumn to give member states and the UK Parliament time to formally ratify the arrangements before the Brexit deadline in March 2019.