Impact of Brexit on businesses

On 24 December 2020, the EU and the UK concluded their negotiations on the Trade and Cooperation Agreement (TCA) and the complementary agreements on the security of classified information and nuclear cooperation. The TCA entered into force on 1 January 2021.

Many things changed when the UK exited the EU single market and the Customs Union on 1 January 2021, as the UK and the EU are now two separate market areas with different regulations and laws. The new relationship is clearly more distant than it was before, which means increased paperwork and costs for businesses doing trade between the EU and the UK. Even if the TCA is comprehensive and certain products are offered duty-free and quota-free trade access to the markets of the parties, the agreement does not replace the single market. The free movement of goods, services, capital and people ceased to be in force on 1 January 2021. Therefore, there will be major changes to trade between the EU and the UK despite the conclusion of the TCA.

How these changes will affect an individual company depends on factors such as the company’s field of activity, location and position in the production chain. Some of the changes are product-specific.

EU–UK Trade and Cooperation Agreement I European Commission
Information on the agreement I European Commission

 

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