Trade Negotiation Between the UK and the EU.....

Trade negotiation between the UK and the EU is the negotiation after Brexit between the United Kingdom and the European Union for a trade agreement to make trade easier than it would be without such a deal. The deal might cover (or eliminate) both tariff and non-tariff barriers to trade.....

During the Brexit negotiations in 2017 (of the withdrawal agreement), the two sides agreed that trade negotiation could only start after the UK's withdrawal, because such negotiations could not happen when the UK still has a veto right within the EU.

 

 For this and other reasons, a transition period after Brexit day was defined to allow those negotiations. The transition period started on 1 February 2020, in accordance with the withdrawal agreement. The transition period is scheduled to end on 31 December 2020, a deadline which could have been extended for two years, if requested by 30 June 2020. The British government declared that it would not apply for any such extension, and did not do so. In addition, it declared that the only kind of trade deal the UK is interested is in, if any, is a Canadian-style trade deal.

The United Kingdom will leave the European Single Market and European Union Customs Union on 1 January 2021. A trade deal would facilitate EU-UK trade, which accounts for 49% of international UK trade. A Canadian-style trade deal would offer the UK reduction on most of custom tariffs between the EU and the UK, but without eliminating VAT, customs and phytosanitary checks. The arrangements for its dominant financial services sector are of particular importance to the UK.