After months of negotiation and deliberation, the European Union (EU) and the United Kingdom (UK) have agreed upon a post-Brexit trade deal. The deadline for the deal was by the end of the year and as days went by without any agreement, both the administration and the people of UK were worried about trade with the EU in the future.
Here are the key points of the post-Brexit trade deal:
Goods trade: The trade deal does not impose any tariffs or quotas on goods traded between the EU and UK, however, British exporters will have to contend with new regulatory hurdles which will make it costlier to do business with Europe.
Financial services: The trade agreement does not shed much light on the operation of financial firms. It only features standard provisions on financial services, meaning it doesn’t include commitments on market access.
Transparency: The EU and UK have both agreed to uphold their environmental, social, labour and tax transparency standards.
Disputes: Any disputes on the trade between the two parties are subject to negotiation by both but EU courts will have no say in the matter.
Fishing norms: This was one of the most disputed subjects of the trade deal. The agreement was that the UK would get 25% of the current EU catch in British waters in a phased manner over a period of five years. A phased transition period of five-and-a-half years will also be present during which time reciprocal access rights to each other’s waters would nit change.
Customs: The EU and UK have agreed to limit customs red tape including through programs for trusted traders called Authorised Economic Operators (AEO).
Aviation: As per the British government, the EU will no longer grant automatic recognition to British aerospace designs and products.
Data flow: There is a temporary provision in the deal that allows the flow of data between the EU and UK until the bloc a data adequacy decision.
Energy: The UK will no longer have access to the EU’s internal energy market. However, there will be new arrangements made on this front in 2022 to ensure smooth trading.
Professional services: There will no longer be automatic mutual recognition of professional qualifications.
Travel for business: Both parties have come to the agreement that people on short-term business trips would not need a work permit or undergo economic needs tests.
Taxes: UK’s domestic tax regimes or tax rates would not be constrained as per the government and both sides were committed to upholding the global standards on tax transparency.
Agriculture: Agricultural products would not be subject to tariffs or quotas, however, shippers would face new challenges and higher costs thanks to new border requirements.
Law: There will be cooperation between the EU and the UK, especially in cases of investigating terrorism and other serious crime. Exchange of DNA, fingerprint and airline passenger information is allowed under the new deal.
(With agency inputs)