Just a few days before the end of the year the UK and the EU have signed a post Brexit agreement ending the uncertainty and providing a hopeful 2021. We have outlined the key points you need to know and touched on how this may impact your business.
Data
An agreement has been made for data to be continued to be transferred with now change for the next 4 months – this is extendable for an additional 2 months. Companies should prepare for a change in regulation earlier next year and should pre-empt technical changes and amendments to operating procedures in order to prevent potential breaches in data privacy.
Alignment
It has been agreed on both sides that regulations around workers rights, environmental and social regulations will be aligned initially. This can be open to change in the future so companies should keep note of any updates.
Dispute Resolution
What happens if there are drastic changes that have a negative impact on either side? Mechanisms can be put in place in this case, this can be in the form of additional tariffs in order to ‘re balance’ where needed. Companies should be aware of sudden traffic amendments and should put precautionary measures in place.
European Court Of Justice
Britain will no long be under the jurisdiction of the European Court of Justice. This is with the exception of Northern Island which will remain in the EU single market and customs union.
Travel
UK nationals will now require a visa if they want to travel to countries in the European Union and are able to stay for up to 90 days within a 180 day period.
Financial Services
Both sides have agreed to reach a memorandum of understanding by 2021. Companies should be actively tracking updates to financial regulations during the first quarter of next year. You may have to apply for specific EU countries to operate there, this is however, not confirmed.
Product Standards
Depending on if your company wants to sell products in both the UK and the EU, it may be that you have to get your product certified twice. It is worth checking the new regulations for your specific industry and taking action on any new certifications you need to obtain. You can learn more
Professional Qualifications
In the agreement UK citizens who want to work in the EU may not be as easily accepted as with the current framework. Both sides are working on an arrangement where qualifications are mutually recognised but the details are not yet confirmed.
Fishing
With the UK initially looking for an 80% cut in the value of fish caught by EU boats in UK waters, in the agreement that has been reached the value that has been confirmed is 25%.
This agreement will be the basis for future negotiations and changes in the relationship between the UK and the EU. Companies in general should be monitoring these changes and getting ready accordingly. UKSGBridge actively advises clients to expand their operations between the UK & Singapore. Contact us to know more.
This post has been written by Shiv Thakker for UKSGBridge Limited, and represents his views only. The copyright for this post subsists with UKSGBridge Limited, and parts or the whole of this post may be reproduced with permission from UKSGBridge Limited.
Sources
Politico – https://www.politico.eu/article/10-key-details-uk-eu-brexit-trade-deal/
