Brexit: Establishing a Trade Deal Between EU and UK

Brexit: Establishing a Trade Deal Between EU and UK

The Queen has approved the Brexit EU-UK trade deal, declaring it an official law in the UK.

After lengthy deliberation, an agreement between Britain and the European Union has been passed outlining the Brexit EU-UK trade deal. Prior to being adopted into EU law, the agreement will need to be endorsed by the EU parliament. The deal is on the basis of international rather than EU law, and outlines seven key segments, each catered to different aspects.

• Mandated customs will now be imposed for trade between the UK and EU regions. No tariffs or other restricting quotas will be imposed for traded “goods”, however.

• Service providers in UK regions will not automatically be permitted to trade with EU regions, beginning January 1st, 2021, as the one member state authorization will cease to uphold.

• Visas will now be mandatory for travelers who intend to stay in the country beyond 90 days in any 6 month period, and for any individuals traveling to the country to engage in work outside of regular conferences or meetings.

• Employee transfers within a company will be classified as provisional migration, and their time in the country may not exceed 3 years. Those traveling to the country for specific activities and not to provide services will be granted short-term entry as well. Transferring service providers on contracts or independent workers will be permitted in certain cases.

• Licenses and professional qualifications will now be subject to further scrutiny for acceptance than before. These qualifications must now receive recognition in the respective state, regardless of where it was acquired. This trade deal implies that the EU-UK may cooperatively implement new procedures to recognize professional qualifications in the future, which may be tailored uniquely to each profession. They may also involve lawyers to ensure compliance with international law.

• New compliance laws may be implemented to achieve the new mandate of cross-border fees. Workers who need to cross the border, as well as their employers, will be prone to pay social security fees in just one state at a time. UK employees engaging in provisional work in an EU State will only be required to pay social security fees in the UK for the time spent working in that EU State, and vice versa.

• In particular EU Member States, a VAT representative will need to be appointed.

• The UK DPA (Data Protection Act) 2018 will be applicable, even exceeding a transition period to ensure data protection. Organizations must comply with GDPR guidelines.

Employer Considerations:

• All permissions and obligations that the UK had as an EU Member State will cease to uphold, beginning January 1st, 2021. The Withdrawal Agreement will fall into governance while these rights are transitioning.

• Other than in cases of exemption, all employees traveling between UK and EU Member States will need to apply for and obtain visas.

• New compliances must be implemented and followed for imparting goods and service.

• UK establishments who process EU residents’ information may need to incorporate standard clauses in contracts (SCCs), update all policies and other relevant documents accordingly for each individual case, and appoint an EU representative, as of January 1st, 2021.

 

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