Uk Eu Trade Agreement
The UK and EU Trade Agreement: What You Need to Know
As of January 1st, 2021, the United Kingdom (UK) and the European Union (EU) have entered a new phase of their trading relationship. After months of negotiations, the two sides have agreed on a post-Brexit trade deal that will govern their economic ties going forward.
The UK-EU trade agreement has been widely celebrated as a significant achievement after years of uncertainty surrounding Brexit. However, what does the deal actually entail, and what are the key points that UK businesses should be aware of?
Trade in Goods
Under the terms of the trade agreement, there will be no tariffs or quotas on goods traded between the UK and the EU. This means that businesses on both sides can continue to trade as before, without the added cost of new tariffs.
However, to qualify for zero tariffs, goods must meet certain criteria to be considered “originating” in either the UK or EU. This means that businesses will need to ensure that their products meet the relevant rules of origin to avoid paying additional tariffs.
The trade deal also includes commitments to maintain high standards on environmental, labor and social protections, as well as on health and safety regulations.
Trade in Services
The UK-EU trade agreement includes provisions for the trade in services, which account for the majority of the UK`s economy. The agreement includes commitments to maintain existing market access and liberalization in sectors such as professional services, financial services, and telecoms.
However, it is important to note that the deal does not cover all services. For example, there is no equivalence arrangement for UK financial services, which means that financial firms will need to access EU markets under different rules.
There is also no agreement on mutual recognition of professional qualifications, which could impact UK professionals working in the EU.
Importantly, the trade agreement does not cover the free movement of people between the UK and EU, which means that businesses will need to ensure they have the relevant visas and work permits in place to access talent and expertise from both regions.
Conclusion
In summary, the UK-EU trade agreement represents a significant achievement for both sides, providing much-needed clarity on the future of their economic relationship.
While the deal encompasses a broad range of areas, businesses must be aware of the specific provisions that affect their operations. This includes understanding the rules of origin for goods traded between the UK and EU, the impact of any changes on trade in services, and the implications for access to talent and expertise.
In a post-Brexit landscape, it is essential that businesses remain vigilant and keep up-to-date with any changes to the trade agreement to ensure they can adapt accordingly.
