The ongoing transition process of Brexit, where the UK is all set to exit the European Union (EU) on 31 December, surrounds a wide range of business affairs that are required to be dealt with priority as the deadline is just a month away. The Boris Johnson government has been advising professionals as well as enterprises engaged in bilateral trade to ensure that all the necessary tasks are completed much before the deadline.
Access to the EU market
According to some media reports, there could be a potential delay in the EU’s decision on UK banks and financial services firms. The assessments being conducted by the EU in connection with the market access may not get completed within the given transition period in order to implement the rules from January 2021.
Great Britain is entitled to enjoy free access to the EU market until the Brexit transition deadline of 31 December. Upon the termination of the post-Brexit transition period, a different set of arrangements will be implemented with regards to the market access between the two entities that have to be introduced as soon as possible in order to safeguard the interdependability of corporations. The discussions over the financial services sector are not a part of the extant free trade agreement.
Free trade agreement
The Johnson government has been eyeing to seal a free trade deal between the two entities to ascertain a minimal effect on the enterprises having a large part of operations in other EU countries. However, PM Johnson has expressed his confidence in front of ministers that the country is bound to continue the growth trajectory irrespective of a conclusive free trade deal.
If the UK administration is not able to reach a conclusive agreement with the EU, Britain would then be forced to integrate its trading arrangement according to the basic framework institutionalised by the World Trade Organisation. Additionally, there is a definite likelihood of the introduction of trade tariffs between the UK and EU if a no-deal situation arises. In such a case, a certain number of exported goods from either side may turn dearer as compared to the present market prices because of the added tariffs.
Recently, the government had notified that the transition period is slated to conclude on 31 December and there will be “no extension” in the deadline. There can be a possible risk and interruption in the business operations if an enterprise fails to incorporate necessary actions with regard to the Brexit guidelines. From 1 January, the businesses might not receive personal data from the European Economic Area through legal means unless a corporation has introduced alternative methods to ascertain the personal data flows from EU to the UK, the government notification read.