Trade agreements between the UK and EU: What you need to know
After years of negotiations, the UK and the European Union (EU) have finally struck a trade deal. This agreement will have long-term implications for businesses and consumers on both sides of the English Channel. If you`re wondering what this deal means for you, here`s what you need to know.
The key points of the trade agreement
The deal covers trade in goods and services, as well as some aspects of security and data sharing. It allows for tariff-free trade in goods between the two sides, provided they meet certain standards and regulations. However, there will be new regulatory checks and paperwork for businesses moving goods across the UK-EU border. Services, which make up a significant part of the UK economy, are also included in the deal, but there will be limits to the degree of access that UK businesses will have to the EU market.
The deal also includes provisions for fisheries, which were a sticking point in the negotiations. The UK will regain full control of its waters, but EU boats will still be able to fish in UK waters for a transitional period of five and a half years. After that, there will be annual negotiations on fishing quotas.
What this means for businesses
For businesses, the trade deal provides some much-needed clarity and stability after years of uncertainty. UK businesses that trade with the EU will now have to adjust to new customs procedures and regulatory checks, which could lead to delays and additional costs. However, the deal avoids the worst-case scenario of a no-deal Brexit, which would have resulted in tariffs and other barriers to trade.
In some sectors, such as financial services, the deal falls short of what businesses were hoping for. The agreement does not include a system for mutual recognition of regulations, which means that UK financial services firms will have to get regulatory approval from the EU in order to operate there. This could make it harder for UK companies to do business in the EU.
What this means for consumers
For consumers, the trade deal should mean that prices for goods imported from the EU will remain stable, as there will be no tariffs on most products. However, there may be delays and shortages of some products due to the new regulatory checks and paperwork required at the border. Consumers may also see changes in the availability of certain products, as UK businesses adjust to the new trading arrangements with the EU.
The future of UK-EU relations
While the trade deal provides some much-needed certainty in the short-term, the long-term relationship between the UK and the EU is still uncertain. The deal does not cover some key areas, such as data adequacy and security cooperation, which will need to be negotiated separately. There are also questions about how the UK and the EU will cooperate on issues like climate change and foreign policy in the future.
In conclusion, the UK-EU trade deal provides some measure of stability and certainty for businesses and consumers in both the UK and the EU. However, there are still many unanswered questions about the long-term relationship between the two sides, and it will be some time before the full implications of the deal become clear.