Daily Management Review

UK And EU Finally Arrive At A Brexit Trade Deal


UK And EU Finally Arrive At A Brexit Trade Deal
Just seven days before the exit of the United Kingdom from the European Union, a much awaited trade deal was achieved between the two trading partners, even though a narrow one on Thursday.
This deal ensures that the trade between the two parties which amounts to almost $1 trillion annually is not subjected to any tariffs and other trade barriers after the exit of Britain form the largast trading bloc of the world.
"It was a long and winding road. But we have got a good deal to show for it. It is fair, it is a balanced deal, and it is the right and responsible thing to do for both sides," European Commission President Ursula von der Leyen told reporters.
A picture of himself inside Downing Street, raising both arms in a thumbs-up gesture of triumph, with the words "The deal is done" was tweeted by British Prime Minister Boris Johnson.
"We have taken back control of our money, borders, laws, trade, and our fishing waters," a Downing Street source reportedly told the media. "We have delivered this great deal for the entire UK in record time, and under extremely challenging conditions... all of our key red lines about returning sovereignty have been achieved."
The UK is set formally and completely detach from the EU on January 1, 2021. The UK had formally left the EU on January 31 and currently it is in a transition period for Brexit under which rules on trade, travel, and business remained unchanged until December 31. The decision to leave the EU was taken in 2016 after a referendum in the United Kingdom.
Even though there were reports for about week about that the two parties were very close to a deal, an agreement on trade was being held up over the issue of just how much fish EU boats should be able to catch in British waters, among others.
None of the sides have said anything publicly about the details of the trade deal. However, trade in goods that makes up half their almost $1 trillion in annual commerce could be smoothened if the both sides have agreed to a zero-tariff and zero-quota deal.
According to analysts, the deal will also help to support the peace in Northern Ireland.
If a trade deal was not achieved, it would have meant imposition of tariffs on cross-Channel trade in food and goods which would exacerbate the economic shock of a return to a customs border after 47 years of integration.
A grudging welcome to the trade deal between the UK and the EU was given by Tony Danker, director-general of the Confederation of British Industry. "Coming so late in the day, it is vital that both sides take instant steps to keep trade moving and services flowing."