UK and European Union agree trade deal
24 / 12 / 2020
By Damian Brett
The European Union (EU) and UK have agreed a trade deal that will allow tariff free trade in goods.
The deal comes after weeks of intense negotiations as the two sides worked to thrash out an agreement before the UK leaves the single market and customs union on December 31.
According to the Guardian, the deal guarantees “zero tariff and zero quota” trade on goods worth £668bn in 2019. UK aircraft and trucks will continue to have access to EU states.
However, there will also be increased border checks on goods from January 1, which could put pressure on supply chains as companies adjust to new ways of working.
Logistics UK policy director Elizabeth de Jong welcomed the deal but warned that companies still needed to prepare for new trading conditions.
“A deal is great news for the UK economy,” said de Jong. “Since it removes the risk of tariffs being placed on almost every item imported from the EU, which would have raised prices and slowed the rate of economic growth.
“We are still absorbing all the details, but it looks as though HGVs will continue to have access to the EU market, and aircraft will still be permitted to fly to and from the EU, which safeguards the UK’s highly interconnected supply chains and protects the jobs of those charged with keeping the country stocked with the goods it needs.
“Meanwhile, Logistics UK is urging traders to continue to get ready for new trading conditions as they were before, as the new trading relationship will still require many of the same preparations, not least the introduction of customs declarations and additional checks on food and livestock.
“Logistics UK is advising traders not leave paperwork to the last minute, or ignore it, as this will cause delays to journeys.”