A post-Brexit trade deal between the European Union (EU) and the UK has finally been reached. The two months-long dispute over fishing rights and future business rules finally found the best solution for all parties. This is what many people are waiting for.
According to sources from the BBC, the text of the agreement has not yet been released, but British Prime Minister Boris Johnson has claimed that the deal is going very well. He said that it was a good result for the whole of Europe.
Marking Brexit, the UK will be out of EU trade rules by next Thursday. This means exactly a year after officially leaving the 27-nation bloc. The situation will trigger major changes, especially related to business. That is because those countries will form two separate markets.
The Text of the Agreement Will be Released Soon
Britain's chief trade negotiator Lord Frost has told the public that the full text of the free trade agreement will be published soon. For information, the UK parliament will also be recalled on 30 December. The aim is to vote on the deal,
In addition, the treaty also needs to be ratified by the European Parliament. This is welcomed by global markets. This is reflected in world oil prices crawling up. Commodity prices reportedly rose slightly on Thursday. A post-Brexit trade deal is a trigger.
On Friday, according to Reuters data, U.S. crude West Texas Intermediate (WTI) CLc1 rose as much as 11 cents to $US48.23 a barrel. Furthermore, Brent crude futures closed 9 cents higher and were in the price range of US$51.29.
However, the market has indeed strengthened sharply since the end of October. The situation is triggered by the Coronavirus (COVID-19) vaccine which is in the process of getting approval in many countries. The Brexit deal also strongly supports the impact of the vaccine.
What is the Content of the Brexit Deal?
Although it has not yet been released, many parties are very curious about the content of the agreement. That new deal between the two countries reportedly contains rules on how both sides will live, work, and trade together. It will take effect from January 1, 2021.
There are some important points that must be adhered to. First, there is no import duty for each other's goods when crossing the border. This is done to reduce the cost of a trade. Then, there is no limit to the number of goods as well.
The UK government said the deal would cover £668bn of a trade by 2019. European Commission President Ursula Von der Leyen said the rules on 'competition' were designed to prevent one party from gaining an unfair advantage. That is a good decision.
Goods Checking Will Still be Done
Ursula also stated that the UK and EU will continue to cooperate primarily in all areas of common interest. These points include things like climate change, energy, security, and transportation that are important aspects for both countries in the future.
However, checking goods at the border will still be done with the agreement as mentioned above. This means that entrepreneurs must be prepared for some changes when it comes to delivering their products. Furthermore, the UK will not participate in the Erasmus student exchange program.
Bottom line, there's a lot of detail in the deal. Therefore, it takes a little time to really understand its meaning for the activities of daily life. It is included the thing about holidays and studying in the EU in the future.
However, Brexit supporters say that exiting the EU would make the UK free to make trade deals around the world. His opponents do say it is better to remain one stronghold with Europe given that the country is an important trading partner.
