Despite the challenges globally relating to the Coronavirus Pandemic, the UK has now formally confirmed to the EU that it will not seek an extension to the transition period at the end of December 2020. This leaves about 6 months for the UK government to clarify a number of areas.
While there have been numerous cliff edges over the last few years, this feels like the one that will finally take the UK out of the single market and the customs union, with all the headaches and challenges that entails. While preparations at the borders on the EU side appear to be complete, the UK side will look to relax requirements temporarily on goods coming from the EU and you can find our article on this here. On the impacts to freedom of movement and individuals wanting to work in the UK, this is part is relatively clear and we have all the updates for you here.
However there are still many niche and regulated sectors such as Finance and Medicine that will want to know how things will operate after December. Not to mention the complexities of resolving the situation in Northern Ireland and the knock on political and negotiation effects.
What kind of trade deal the UK ends up getting is still anyone’s guess, much of the talk is whether it will be a “Canada” style Comprehensive Trading Arrangement (CTA) or an “Australian” one which is basically a deal on WTO terms. Any trade deal will only remove tariffs and not the need for declarations, creating more administration for companies moving goods between the two jurisdictions. From the numerous experts I have listened to the belief is that a basic goods FTA will be in place by the end of the year, but in this ever-changing landscape one needs to monitor the situation closely.
At Goodwille we will be tracking progress of the talks and you can follow our timeline here to see key dates in the future. We will also be working with our network and partners in the UK to make this transition as smooth as possible for your businesses. The number of Brexit newsletters will no doubt increase over the next few months. As always we will endeavour to make you aware of updates and clarifications to rules and regulations to the way you do business in the UK. Please don’t hesitate to reach out to us if you have any questions.