Trade Agreement Continuity UK: What Does It Mean for Businesses?
Brexit has brought significant changes to the business landscape in the UK. One of the areas that have been highly impacted is international trade. With the UK leaving the European Union, businesses have had to navigate new trade policies and regulations.
To mitigate the disruptions in trade, the UK government has been establishing continuity agreements with countries that have existing trade deals with the European Union. These agreements are commonly referred to as Trade Agreement Continuity (TAC) agreements.
In this article, we will take a closer look at TAC agreements, why they matter, and what they mean for businesses operating in the UK.
What Are Trade Agreement Continuity Agreements?
Trade Agreement Continuity agreements are bilateral agreements between the UK and non-EU countries that aim to ensure that trade between the two countries continues uninterrupted after Brexit. They are essentially a rollover of existing trade agreements between the EU and other countries.
These agreements are crucial in ensuring that businesses can continue to trade with their partners without experiencing the disruptions that could result from having to negotiate new agreements from scratch.
Why Do Trade Agreement Continuity Agreements Matter?
Trade Agreement Continuity agreements are essential for businesses operating in the UK, as they provide stability and predictability in international trade. By maintaining existing trade relationships, businesses can continue to access markets, import and export goods, and provide services to customers in their partner countries.
Moreover, these agreements help to reduce trade barriers and simplify trade procedures, which can help to reduce costs for businesses and make them more competitive in the global marketplace.
What Do Trade Agreement Continuity Agreements Cover?
Trade Agreement Continuity agreements cover a wide range of areas, including trade in goods and services, investment, intellectual property, and regulatory cooperation.
For example, the UK-Japan Economic Partnership Agreement, which was signed in October 2020, covers trade liberalization, regulatory cooperation, digital trade, and more. It aims to reduce tariffs on UK exports, provide certainty for businesses, and enhance investment opportunities between the two countries.
What Do Trade Agreement Continuity Agreements Mean for Businesses?
Trade Agreement Continuity agreements provide businesses with assurance and stability in their trading relationships with partner countries. They enable businesses to continue to import and export goods and services, access new markets, and create new business opportunities.
Moreover, these agreements help to maintain regulatory alignment between the UK and partner countries, reducing the need for businesses to adjust their operations to comply with new rules and regulations.
In summary, Trade Agreement Continuity agreements are crucial for businesses operating in the UK. They provide stability and predictability in international trade, reduce trade barriers, and enable businesses to continue to access markets, import and export goods, and provide services to customers around the world. For businesses looking to expand globally, trade continuity agreements provide a solid foundation for their growth and success.