Switzerland is the UK`s fourth largest trading partner with a 3.3% share of total trade. The UK government is also conducting trade negotiations with countries that do not currently have trade agreements with the EU, such as the United States, Australia and New Zealand. EU heads of state and government will hold their next summit on 10 December. This, at least in Brussels, is widely regarded as the recent whisper of Brexit at a time when the trade and security deal with the UK – not “almost” – must be there, but really. On Friday, it was said that Michel Barnier would propose to reinstate the UK between 15% and 18% of the quota of fish caught by EU fleets in British waters under a free trade agreement. This was later rejected by a number of European diplomats as one of the “many proposals circulating”. Voters on the red wall will not forgive Boris Johnson for deriving for a trade deal with Brussels, as damning polls show. Britain officially left the EU on 31 January, but has since been in a transitional period where trade, travel and business rules remain unchanged. From the end of the year, Brussels will be treated as a third country. After 31 December 2020, EU trade agreements will no longer apply to the UK. A Mutual Recognition Agreement (MRA) is an agreement in which countries recognize the results of the other`s compliance assessment. Andorra, San Marino and Turkey are part of the customs union. The UK`s future trade relations with these countries will be influenced by the UK`s agreement with the EU.
In the absence of a trade agreement before 31 December, the UK and Mexico will act under WTO conditions – and tariffs would hit the automotive sector hardest. Even if a trade agreement is reached, it will not eliminate all new controls, as the EU requires that certain products (such as food) from third countries be checked. Businesses need to be prepared. The UK government is working on new deals that will replace EU trade deals after Brexit. Updated to reflect the agreement in principle between the United Kingdom and Canada on trade continuity. The European Union is still negotiating a trade deal with the UK, the EU Council president has confirmed. The UK is trying to replicate the effects of existing EU agreements at a time when they no longer apply to the UK. If the UK were to act in accordance with WTO rules, tariffs would apply to most of the products that British companies send to the EU. This would make British goods more expensive and more difficult to sell in Europe. The UK could also do so for EU products if it so wishes.
Any existing EU agreement, which will not be rushed, will end on 31 December and future trade will take place on WTO terms until an agreement is reached. The UK will leave the transition period on 31 December, with or without a trade agreement. The South Korean list has been updated, with the UK signing a trade agreement with South Korea. Changes to the table “Trade Agreements outstanding”: “Percentage of total trade in the UK, 2018” has been updated following the publication of trade statistics from the Office for National Statistics. The following agreements with countries and trading blocs are expected to enter into force when existing EU trade agreements no longer apply to the UK from 1 January 2021. To date, more than 20 of these existing agreements, covering 50 countries or territories, have been shaken up with the exception of the I.V. and will begin on 1 January 2021.