UK Chancellor of the Exchequer, Rishi Sunak, has announced a ‘breakthrough’ deal for free-flowing trade throughout the UK. The agreement was reached with Northern Ireland and will ensure that goods are able to move freely between Great Britain and Northern Ireland. This is a landmark moment in British politics as it signals a return to
UK Chancellor of the Exchequer, Rishi Sunak, has announced a ‘breakthrough’ deal for free-flowing trade throughout the UK. The agreement was reached with Northern Ireland and will ensure that goods are able to move freely between Great Britain and Northern Ireland. This is a landmark moment in British politics as it signals a return to normalcy after years of political uncertainty. In this blog post, we’ll be discussing how Sunak’s announcement will impact trade throughout the UK and what it could mean for businesses going forward.
Rishi Sunak announces ‘breakthrough’ deal for free-flowing trade throughout UK
Rishi Sunak has announced a “breakthrough” deal which will see free-flowing trade throughout the UK.
The deal, which was reached between the UK and the EU, will see goods and services being able to move freely between the two economies.
This is a major breakthrough for the UK as it secures its place as a global trading nation after Brexit.
The agreement will come into effect from 1 January 2021 and will be reviewed every five years.
The different types of Brexit
The term Brexit is used to refer to the United Kingdom’s withdrawal from the European Union. There are different types of Brexit, which are as follows:
- Hard Brexit: This is a scenario in which the UK leaves the EU completely and severs all ties with the bloc. This would mean that the UK would have to negotiate new trade deals with the EU and other countries around the world.
- Soft Brexit: This is a scenario in which the UK remains a member of the European Union but agrees to opt out of certain aspects of membership, such as the free movement of people. This would allow the UK to retain some benefits of EU membership while also being able to pursue its own independent trade policy.
- No-deal Brexit: This is a scenario in which the UK leaves the EU without any deal in place regarding trade or other areas of cooperation. This would mean that the UK would have to trade with the EU on World Trade Organization terms, which could lead to higher tariffs on goods exported to and imported from the EU.
How the deal will affect businesses and trade
The UK government has announced a major new trade deal with the EU which will see businesses and trade benefiting from free-flowing movement of goods between the UK and EU. The deal, which was agreed by Prime Minister Boris Johnson and European Commission President Ursula von der Leyen yesterday, will come into effect on 1 January 2021.
Under the terms of the agreement, businesses will be able to export goods to the EU without tariffs or quotas, and there will be no customs checks or controls at the border. This is a significant benefit for businesses who have been facing significant delays and disruptions to their supply chains since the UK left the EU in January 2020.
The deal will also provide certainty for businesses who have been operating in limbo since the Brexit vote, and will allow them to plan for the future with confidence. It is estimated that this could add up to £450 billion to the UK economy over the next 15 years.
There are some areas where there has been no agreement reached yet, such as fishing rights and data sharing, but these are expected to be resolved in the coming weeks. Overall, this is a positive step forward for businesses and trade in the UK, and should help to boost economic growth in 2021.
What the deal means for the UK’s relationship with the EU
The UK government has announced a “breakthrough” deal with the European Union which will allow free-flowing trade throughout the UK. This is a significant development in the UK’s relationship with the EU, and will have far-reaching implications for both economies.
Under the terms of the deal, goods will be able to move freely between England, Scotland, Wales and Northern Ireland without any customs checks or delays. This is a major win for businesses and consumers in the UK, who will no longer have to contend with costly and time-consuming bureaucracy.
The deal also includes provisions for cooperation on issues such as law enforcement and security, which are crucial for maintaining close ties between the UK and EU. This is a positive step forward in the UK’s relationship with the EU, and should help to ensure that cooperation continues after Brexit.
Reactions to the deal
The business community has largely welcomed the deal, with many firms saying it will help to boost economic growth. However, some have warned that the agreement does not go far enough in addressing key issues such as financial services and data sharing.
The head of the Confederation of British Industry (CBI), Dame Carolyn Fairbairn, said the agreement was a “positive first step” but urged both sides to continue working on areas where more progress was needed.
“This is a very positive first step which provides much-needed certainty for business,” she said. “It’s vital that we now see an ambitious roadmap for the next phase of negotiations.”
However, she warned that there were still “significant unresolved issues” which needed to be addressed, including financial services and data sharing.
The Federation of Small Businesses (FSB) also welcomed the deal but said more work needed to be done to secure a bright future for small firms.
“This is a welcome deal that will provide some much-needed certainty for small businesses,” said FSB National Chairman Mike Cherry. “However, we mustn’t get ahead of ourselves – this is just an interim arrangement.”
Rishi Sunak’s ‘breakthrough’ deal for free-flowing trade throughout the UK is a welcome and much-needed measure that will significantly benefit not just businesses but also consumers. This kind of agreement marks a new era of growth, prosperity, and opportunity in the British economy. It remains to be seen how this resolution will affect other countries involved in international trade, as well as what impact it may have on global markets. However, one thing is certain: Rishi Sunak’s efforts have opened up an exciting future for the United Kingdom and beyond.