The unprecedented free trade agreement will allow tariff free trade between the UK and EU. This not only helps businesses but also consumers as prices should remain unchanged. There was a risk of increases of up to 45% on some products and uncompetitive pricing for exports. The UK will not be part of the common Customs area, but we will be able to have tariff free trade.
Other announcements relating to our new but close relationship includes extremely important matters regarding security, research and data protection. As an example of the importance of the success of this ‘deal’, the UK is recognised as a world leader in research and there was a significant concern that the UK would lose access to collaborative research with our EU partners and lose some of our best researchers, restricting our future footprint in this critical economic and socially important sector.
However, even with a deal, there will be some new border checks - so businesses will need to be ready for some changes. Businesses will need to comply with Customs controls and VAT reporting requirements. These obligations add bureaucracy, but are manageable. Both the UK and EU have heavily invested in new systems and funding for the recruitment and training of Customs agents to deal with the new Customs controls.
The deal is extremely important to UK businesses and we look forward to a new and positive trading relationship with our EU neighbours. UHY will continue to help our clients trade across borders as effectively as possible.
The next step
We will provide more information about this new relationship in due course on the Brexit section of our website. Alternatively, please contact your usual UHY advisor for more information, or get in touch using our contact form.