The UK and the EU are negotiating a future relationship which the UK Government intends will be in place for 1 January 2021.
The UK continues to have access to the terms of EU Free Trade Agreements with third countries during the transition period. The UK Government can negotiate new trade agreements with third countries from 1 February 2020. The UK Government is working on the principle of replicating existing EU agreements.
Any UK trade agreement will come into effect after the transition period. In addition, the UK Government is seeking to develop new trade agreements with the Australia, Canada, Japan, New Zealand, and the US.
FPC has joined others in the UK food and drink industry to set out a vision for the UK’s future trading policy. It distils common themes which we believe should form the core of government thinking on future trade policy affecting our sectors.
What may happen after 31 December 2020?
From 1 January 2021 there will be changes in how you trade with the EU and with third countries.
If there is no agreement in place between the UK and the EU by 31 December 2020 then there would need to be an extension to the transition period, agreed by both the UK and the EU, or we will be in a ‘No Deal’ situation, as we faced in 2019. We cannot rule out this potential outcome.
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