After a great deal of anticipation, the UK has reached a trade deal with the EU prior to the expiration of the Brexit transition period. The transition period was intended to help UK traders and organisations prepare for the new rules that Brexit would impose upon their operations. But, on 24th December 2020, a new agreement was reached.
The Brexit transition period was set to expire on 31st December 2020 but the new agreement will change many of the conditions that had been set to begin pertaining to trade and travel between the UK and EU.
When it comes to trade implications, the new agreement between the UK and EU includes the following elements:
- There will be no extra tariffs for goods imported or exported between the UK and EU.
- There will be no limits on the amount of goods that can be traded between the UK and EU.
- There will no longer be an automatic recognition of professional qualifications between the UK and EU, such as those pertaining to doctors or nurses.
One heavily scrutinised element of Brexit has been how it would impact the travel of UK and EU residents for both business and leisure purposes. The new agreement offers solidified rulings on the following subjects:
- UK citizens will now require a visa in order to work, live, study or start a business within the EU.
- UK nationals will be required to have a visa of more than 90 days when visiting the EU for a duration of more than 180 days.
- UK travellers will have to undergo lengthier border checks.
- European Health Insurance Cards (EHIC) will remain valid until their expiration dates. As such, UK travellers will continue to be privy to emergency health care while in the EU. After the expiration of EHICs, UK Global Health Insurance Cards will serve as replacements.
- International mobile roaming rates will be ‘fair and transparent’, but UK travellers should still anticipate potential charges while in the EU.
Brexit has long loomed as a major event that will affect the UK’s relationships with not only the EU, but the rest of the world. There is an abundance of changes that traders will have to make, and more adjustments may be needed in the future. It is important that UK organisations remain apprised of any necessary adjustments and make proper preparations to avoid or minimise any disruptions to their operations.
For more information, and to stay up to date, contact your Konsileo broker today.