Brexit has been a hot topic since 2016, and as the United Kingdom officially left the European Union on January 31, 2020, businesses have had to adapt to new rules and regulations. One aspect that has been significant is the need for continuity agreements.
What are continuity agreements?
Continuity agreements are agreements between the UK and third-party countries, aimed at continuing the existing trade arrangements after Brexit. These agreements cover all aspects of trade, including tariffs, regulations, and quotas. The UK has been working to secure continuity agreements with countries that already have trade deals in place with the EU.
Why are continuity agreements essential post-Brexit?
Continuity agreements` significance lies in ensuring that trade between the UK and third-party countries continues to flow smoothly after Brexit. These agreements aim to avoid disruption, which would impact the economies of both the UK and the third-party countries involved.
The UK has been a member of the EU Single Market and Customs Union for decades. This has allowed UK businesses to trade freely with the EU and third-party countries that have trade agreements with the EU. Brexit means that the UK will no longer be part of these agreements and will have to negotiate new ones with third-party countries independently.
Continuity agreements help to bridge the gap between the transition from old trade agreements to the new ones, ensuring that businesses can continue trading without major disruptions.
Which countries have continuity agreements with the UK?
The UK has been working to secure continuity agreements with countries that have existing trade agreements with the EU. As of January 2021, the UK has secured continuity agreements with 63 countries, including:
– South Korea
These agreements were signed before the end of the Brexit transition period on December 31, 2020.
As the UK continues to negotiate new trade deals with third-party countries, continuity agreements remain critical to ensure trade flows smoothly. The agreements offer businesses stability and certainty when trading with other countries.
In conclusion, continuity agreements are essential in ensuring that trade between the UK and third-party countries continues to flow smoothly after Brexit. They provide businesses with stability and certainty when trading, bridging the gap between old agreements and new ones. As the UK continues to negotiate with third-party countries, continuity agreements will remain an essential aspect of post-Brexit trade.