On 24 December 2020, the Trade and Co-operation Agreement (TCA) between the European Union (EU) and United Kingdom (UK) was finalised. This ensured that the dreaded ‘no-deal’ outcome at the end of the transition period on 31 December 2020 was avoided.
The TCA runs for 1,246 pages and there is much detail to consider. In broad terms however, business will welcome the conclusion of an agreement that provides for tariff-free, quota-free trading of goods between the two jurisdictions; nevertheless, there are a number of non-tariff barriers that will need to be managed while there are also a number of issues that are left unresolved.
Already, we have seen some teething problems involving the movement of goods between the two jurisdictions and we are perhaps fortunate that early January is generally a quiet month for trade and perhaps even more so this year with the various pandemic-related restrictions on business reducing demand. It is therefore important that business takes the opportunity to carefully review the terms of the TCA and takes the relevant actions in order to be prepared and to minimise disruption.
If your business needs any assistance with cross border trade, please contact a member of our tax team.