Eu Exit Trade Agreement

The EU Exit Trade Agreement: What Does It Mean for Businesses?

With the UK leaving the European Union, businesses have been eagerly awaiting the conclusion of a trade agreement between the two entities. After months of negotiations, a deal was finally struck in December 2020. But what does this agreement mean for businesses operating in the UK and the EU?

First and foremost, the agreement ensures that there will be no tariffs or quotas on goods traded between the UK and the EU. This is a relief for businesses, as tariffs would have increased the cost of goods and made them less competitive. However, businesses still need to comply with customs and regulations when exporting and importing goods.

The agreement also includes provisions for services, such as the recognition of professional qualifications between the UK and EU member states. This is important for businesses that rely on the free movement of people for their operations, such as those in the financial and professional services sectors.

However, the trade agreement is not comprehensive and does not cover all areas of trade. For example, the UK and the EU will no longer have mutual recognition of conformity assessments for products such as medical devices or chemicals. This means that businesses trading these types of products will need to comply with separate regulations in the EU and the UK.

Moreover, businesses need to consider the implications of the trade agreement on their supply chains. The agreement allows for tariff-free trade only if the majority of the production process takes place in the UK or the EU. This means that businesses that rely heavily on imports or exports may need to adjust their supply chains to comply with the rules of origin.

In summary, the EU Exit Trade Agreement provides some certainty for businesses trading between the UK and the EU. While it eliminates tariffs and quotas, businesses need to comply with customs and regulations. The agreement also has implications for the movement of people and the recognition of professional qualifications, as well as for certain industries such as medical devices and chemicals. Businesses need to carefully review their supply chains to ensure compliance with the rules of origin.