The business world has been closely monitoring the United Kingdom’s exit from the European Union, dubbed Brexit. As such, the trade relations between the EU and the UK remain the subject of much uncertainty, leaving many businesses and investors uncertain about what the future holds.
From the moment it was announced, Brexit has caused significant ripples throughout various sectors in the UK and across the EU. As negotiations drag on, with numerous disagreements and setbacks, the future of trade relations between the EU and the UK is becoming increasingly unclear.
One of the main issues is whether the UK will have privileged access to Europe’s single market. If this is not the case, several companies may see their supply chain disrupted as the cost of trading increases. Tariffs and a potential border tax could also arise, causing a rise in import and export expenses.
The UK is one of the significant trading partners of the EU. According to reports, the UK imports over 20% of its total goods and services from the EU. The EU members, on the other hand, is responsible for 45% of the UK’s exports.
The uncertainty surrounding trade relations has left many businesses feeling anxious about the future. As a result, some companies have sought to relocate to other European cities, with Dublin, Amsterdam, and Frankfurt being popular choices.
The Brexit negotiations have been ongoing since 2016, with multiple formats of negotiations held. The deal on the table, which includes provisions for the UK leaving the EU customs union and single market while maintaining a lack of border controls between Northern Ireland and the Republic of Ireland, has been rejected three times by the UK Parliament and may be unlikely to get the backing of efforts in the EU Parliament.
In conclusion, the trade relations between the EU and the UK remain uncertain post-Brexit. The issue needs urgent clarification, as businesses and investors keenly await the outcome. What is clear is that both the EU and the UK will require alternative plans in case negotiations break down, and some sort of mitigation plan is necessary to lessen the negative impact on businesses and the wider economy on both sides of the divide in case of no-deal Brexit.
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