The commercial agreement between the UK and the European Union (EU) is a topic of heated debate and concern. The agreement surrounds the terms of trade that will govern the relationship between the UK and the EU after the UK leaves the union. The agreement has been a subject of negotiation between the two parties since the Brexit vote in 2016.
In December 2020, the UK and the EU finally reached a post-Brexit trade agreement after months of intense negotiations. The agreement regulates the terms of trade between the UK and the EU and ensures that there are no tariffs or quotas on goods traded between the two entities.
The agreement also covers other crucial areas such as services, investment, intellectual property, and competition policies. It sets out the rules that will govern the commercial relationship between the UK and the EU moving forward.
The commercial agreement is particularly important for businesses that operate in the UK and the EU. It has far-reaching implications for businesses that trade goods and services between the two entities and sets out the legal framework within which businesses can operate.
The agreement provides some certainty and stability for businesses in the UK and the EU. It allows businesses to continue trading without incurring tariffs or quotas, which would have a significant impact on their profitability and competitiveness.
However, the agreement is not without its limitations and drawbacks. It only covers goods and services that originate in the UK or the EU. This means that businesses that rely on imported goods or materials from outside of the UK and the EU may face additional costs and complications.
The agreement also requires businesses to comply with a range of regulations and standards. This means that businesses may need to make changes to their operations to ensure that they are compliant with the regulations set out in the agreement, which could be costly and time-consuming.
Despite these limitations, the commercial agreement between the UK and the EU is an essential step forward for businesses operating in both entities. It allows businesses to continue trading and helps to ensure that the relationship between the UK and the EU remains strong and viable.