Last week, Britain’s ambassador to the European Union, Tim Barrow, informed European Council President Donald Tusk that the U.K. would trigger Article 50 on March 29 to begin the country’s official exit from the EU.

BNN.ca spoke to Michael Ingram, a market strategist at BGC Partners, about Article 50 and what it could mean for Canada.

What is Article 50?

Article 50 is a piece of European Union legislation detailing how an EU member state can leave the Union. It is part of the Treaty of Lisbon, which became law in 2009.

What will change on March 29?

When Article 50 is triggered, the clock begins on the two-year exit process. During this time, negotiations will take place to determine the future economic and political relationship between the EU and United Kingdom. The timeline can be extended, but only with the unanimous consent of the European Council.

Tusk announced last week that the remaining 27 EU members will hold a summit at the end of April to create guidelines for the negotiations.

“Ahead of Article 50 activation, the EU has been forthright in its determination not to reveal its negotiating strategy – although we have seen some hints. All of that will change on March 29 when the rhetorical floodgates are opened,” Ingram said.  “With elections still to be fought in both France and Germany it could easily get nasty.”

How might Britain's exit from the EU impact interest rates in Canada?

“European markets and real economies have performed well after the U.K. Referendum [in June 2016],” Ingram noted, but added that “Brexit negotiations have the potential to be both politically and economically damaging to both parties, and for this reason, is likely to be a factor in the Bank of Canada’s continued dovish stance on domestic rates.”

How could Canadian companies that do business in, or with, Britain be affected?

“Canadian businesses that are focused on the U.K. domestic market have already taken a hit via weaker Sterling,” Ingram said. “It remains to be seen whether there is further collateral damage to the real economy.”

He added that Canadian companies using Britain as a gateway into Europe could see “significant disruption” because it is unlikely that the U.K. will retain single-market access, or remain part of the EU Customs Union, which allows free trade between member states.

How might Brexit impact the pound and Canadian dollar?

Ingram noted a ‘hard Brexit’ has already, to a large extent, been discounted with the pound, but said a more systemic problem for the remaining EU member states “isn’t central to the market’s current thinking.

"If Brexit were to impact the entire EU (including U.K.), then the rest of the G10 currencies might be viewed as a safe haven," he said. "In this scenario, it's quite possible that the CAD might fall vs. USD, but rise vs. most else."