As the dust settles on the intense Brexit negotiations throughout December, focus now shifts to the workings of the agreed deal and its implications for UK businesses.
John Baddeley, chairman at Wake Smith Solicitors, looks at the issues at the forefront of the deal.
One of the large questions posed by the deal, is how it will be overseen, governed and to whom business groups can direct their need to lobby on cross-channel trade matters. In these infancy days of the post-Brexit era, much of this is still to be established, with numerous required committees charged with managing the many levels of agreement that the UK has in place with the EU, still absent from post.
These omissions will need to be addressed in order to smooth the transition from EU state membership to trade alliance and to help businesses as they work to maintain throughput with EU partners.
At the moment, much speculation hinges around interpretation of the terms of the trade deal and whether there is in fact, a true tariff free system.
It is true that goods which comply fully with EU Rules of Origin requirements will incur no tariffs, however, unless the goods do fully comply with these rules, then tariffs will be applicable.
Cross-channel trade is also subject to compliance with double sets of rules from both the EU and the UK and increased customs processes at the border.
If we step back and view the bigger picture, the unsettled circumstances will continue until the EU actually ratifies the deal, which the UK agreed to implement in good faith with a deadline of 28 February for the EU to complete its translation and ratification of what was agreed in late December.
This has created a ragged transition, with Britain trying to work to a trade deal which is yet to be fully embraced by the EU and many business leaders and politicians taking a sceptical line over the EU's intentions.
Much of this scepticism is drawn from what many view as petty behaviour by EU border forces which have seen UK fish held beyond the point of saleability at French ports. This is despite the UK government's agreement to pause checks on EU imports until July 2021, which has not been honoured for goods going in the opposite direction, into the EU.
It is imperative at this stage that the EU moves to resolve these issues and does not stall in ratifying the UK/EU trade deal if it is to retain the goodwill of UK businesses and those intent on making the deal work.
In other trade news, UK trade deals from outside of the EU are still advancing with exports to non-EU countries in the run up to October 31 growing twice as fast than those to the bloc, driven in large part by major non-EU trading partners including the USA and China, with total trade with the USA surpassing £200 billion for the first time (according to the Office for National Statistics).
Our best advice at the moment is for businesses planning to trade with the EU to use the Government's Brexit Checker gov.uk/transition to ensure that you have your business in a state of readiness and to seek out legal advice for any uncertainties of which there are many!
The other piece of advice is for UK business owners to study the detail of Brexit and to look at other trade deals which the UK is making outside of the bloc in order to potentially capitalise on the UK's emerging post-Brexit opportunities.
