For refining their relationship, the European Union and the UK were doing negotiations for months. Finally, Brexit Deal comes to an end, and new rules after ending the deal were implemented on both the EU & UK from December 31 at 23:00GST.
Meaning of Brexit Deal
In the last few years, many new words and phrases are entered our lives. Normally, we don’t use these words but politicians frequently do. Here are some meanings
Tariff: it is a duty or tax on goods that is compulsory to be paid for crossing borders.
Free Trade: trading of goods between two countries and neither of them charges taxes on goods on crossing borders.
Transition Period: it is the 11-month period following from the time of the UK leaving the EU. The UK follows some strict rules that allow leaders to trade goods.
Level playing fields: it is about a set of rules and regulations and makes sure that a country or a group of countries have an unfair advantage over others. It also includes areas such as environmental standards and worker rights. Free trades like the Brexit deal also include the measuring of a level playing field.
Everyone thought the UK has already left the EU back in 2016 _ Is It True?
Eventually, the Brexit deal was ended; UUK represented the deal of ending the Brexit deal in 2016. The decision to cutting-off the trading bloc was announced officially on the 31st of December 2020. Both parties were agreed to keep things the same till 31st December and give enough time to both sides to negotiate on new trading deals.
After months of bitter & complex negotiation, both parties finally seal the decision on 24 December.
Referendum results _ UK voted to leave EU
In the UK, it was decided by 52% to 48% to leave the EU (end of Brexit deal). According to results, the majority in England, Wales, and the majority of every council in Scotland agreed on ending trade deals.
What changes are implemented from 1 January?
After the results, changes are made in the deal about how both parties will work and trade.
During the Brexit deal, there were no restrictions on the EU and UK. Companies on both sides could sell and buy anything across the borders without paying heavy taxes and there was no limit for the trading number of things.
After negotiation, both ends were agreed on keeping things the same even after 1 January. To make sure both sides are having an equal advantage, UK & EU was agreed to implement some rules for worker’s rights and also some standards of environmental and social principles.
Learn more about new rules for travelling, finances, education, and fishing.
Freedom of working in the EU & UK also comes to an end in 2021. It is made official that nationals of the UK need a VISA to live in the EU for more than 90 days (in a 180-days period). To avoid the hardening of rules on EU borders with the Republic of Ireland, the state will follow the rules and standards set by the European Union. This means new taxes and checks are implemented on the goods entering the UK from Ireland.
Now it is official that the UK is not the part of Brexit Deal, UK is allowed to set its own trading policies with other countries. Australia, New Zealand, and the UK are talking about new trading policies.
What about borders _ will face any disruption in 2021?
There will not be any tax to pay on borders across both ends but there will surely be more paperwork that causes serious delays in deliveries.
According to William Bain (Chief of Britain Retail Consortium), “these are the biggest red tape rules that businesses have to deal with for next 50 years.”
UK government said that “new rules will delay the acceptance of checks for the next 6 months. It will allow people to get used to new systems and rules.” EU officials will start checking all paperwork at the border from Day one. If businesses are not ready to complete the paperwork and prepared to deal with new changes, it will cause serious delays on assignments at backlogs ports like Dover.
The government has already known this for years that are why the UK has already made different arrangements to divert the trade to other ports around the country. There are lorry parks in Kent that avoid gridlock on the roads.
It is not easy to estimate or predict the scale of disruptions in business activities but Michael Gove (UK Minister) said “UK people must keep their minds ready for some bumpy moments in business activities.”
Are these final words we hear about the end of the Brexit deal?
No, this is not the end, there are still some decisions to be made about the agreements of fishing, data sharing, and financial services last for five years.
Meanwhile, the UK & the EU are agreed to some identical rules but there is no pressure to keep these rules the same in the near future. If any of the parties wants to make changes in the rules, they can start a dispute. It will automatically lead to tariffs being imposed on goods in the future.
