Disable Preloader

Blog Details

The UK Leaving The EU

I thought the UK had already left the EU? It has. The UK voted to leave the EU in 2016 and officially left the trading bloc - its nearest and biggest trading partner - on 31 January 2020. However, both sides agreed to keep many things the same until 31 December 2020, to allow enough time to agree to the terms of a new trade deal. It was a complex, sometimes bitter negotiation, but they finally agreed to a deal on 24 December. So what changes on 1 January? The deal contains new rules for how the UK and EU will live, work, and trade together. While the UK was in the EU, companies could buy and sell goods across EU borders without paying taxes and there were no limits on the number of things that could be traded. Under the terms of the deal, that won't change on 1 January, but to be sure that neither side has an unfair advantage, both sides had to agree to some shared rules and standards on workers' rights, as well as many social and environmental regulations. Is this finally the end of having to hear about Brexit? Sadly, no. Decisions are still to be made on data sharing and on financial services, and the agreement on fishing only lasts five years. Also while the UK and EU have agreed to some identical rules now, they don't have to be identical in the future, and if one side takes exception to the changes, they can trigger a dispute, which could ultimately lead to tariffs (charges on imports) being imposed on some goods in the future. Expect the threat of disputes to be a new constant in UK-EU relations. Data were taken from BBC's website.