The EU and the UK government have narrowly clinched a deal just a week before the transition period was to come to an end before 31st December. The deal, comes to more than 1,250 pages and is hailed by Prime Minister Boris Johnson as a “new starting point” for the UK’s relationship with the EU.
He said, “We looked forward to the formal ratification of the agreement and to working together on shared priorities, such as tackling climate change.”
It came after ambassadors representing the 27 EU member states unanimously approved the trade deal, which was secured on Christmas Eve just days before the 31 December deadline. The approval means the trade deal can take effect provisionally, though the European Parliament will formally vote on it in January. New business travel rules will mean fashion models and musicians may need work visas for Europe and that Britons will not be able to live or work in the EU.
Welcoming the end to a long-standing deadlock, Dr. Nik Kotecha OBE, Chairman of Morningside Pharmaceuticals and a CBI Regional Councillor, said, “Uncertainty has dogged the UK’s business community and the wider economy since the referendum in 2016; so it is great news that a deal has been agreed with the European Union just before the Christmas break.
“This deal delivers certainty and will enable companies to finally be able to make long term plans, as well as invest for the future, and what a bright future it could be. It also means that the UK will be able to continue to trade with minimal tariffs and disruption with the EU, which is by far our largest and closest trading partner. Saying this, the way we trade with the EU is changing and things will not be how they were, from the start of 2021.
“I am a great admirer of how UK businesses are able to adapt and innovate, as their operating environments evolve. As an independent sovereign nation there are likely to be many opportunities for businesses to grow into new markets, as the UK continues to sign trade deals around the world.
“Morningside was established as an 100% export-led business in the 1990s, supplying Aid to lower to middle income countries via international Aid Organisations. We have since become a leading manufacturer and supplier of generic medicines to the NHS, hospitals and pharmacies in the UK; so I have seen first-hand the opportunities which are out there, and the huge benefits on offer for UK Plc.
“On December 31st 2020 the Transition Period will end and there will still be some big changes, which UK businesses must prepare for now. But they can be confident that the New Year will bring a fresh start and most importantly of all – certainty - for the first time in a long while.”
The new UK-EU trade deal and the trade and cooperation agreement (TCA), will be introduced with the powers to make legally binding decisions. There will be a partnership council (PC), a political body that will be comprised of representatives of the European commission and UK government ministers. It will consider “any issue relating to the implementation, application and interpretation” of the TCA. It even holds the power, in certain circumstances, to amend the agreement itself.
Beyond tariffs, quotas and fish, the TCA also contains a variety of provisions. Among those with implications for everyone engaged in business travel are the rules governing what Britons entering the EU are, and are not, allowed to do from 2021 onwards. And even as a deal has been hammered out, businesses continue to remain in the dark with regards to licensing, documentation and registration processes required following 31st December. Yet, most Asian businesses are relieved that the UK has not collapsed out of the EU with a no trade agreement.
Welcoming the certainty around Brexit, Lord Karan Bilimoria said, “Following years of fierce debate, the torture of waiting on deal or no deal is over. Both sides deserve praise for reaching an historic UK-EU agreement. This is a big step and a mighty relief for many firms. With a trade deal agreed, vaccine roll-outs starting and rapid mass testing, this can be a springboard to make 2021 a year of recovery. Importantly, a deal provides a platform on which to build and strengthen the UK-EU relationship in the years to come.”
