Although the UK and Europe have reached a trade agreement, bilateral economic and trade relations still face short-term adjustments and long-term problems |

Install the Sina Finance client to receive the most complete market information the first time →[enlace de descarga]

Original title: Although the UK and Europe have reached a trade agreement, bilateral economic and trade relations still face short-term adjustments and long-term problems.

As of January 1, 2021, the UK will withdraw from the European Single Market and the EU Customs Union, and a true “Brexit” will begin. Analysts said that although the UK and the EU finally reached an agreement on future trade deals after difficult negotiations, bilateral economic and trade relations still face short-term adjustments and long-term difficulties.

Under the Anglo-European Agreement, the two parties will continue to enjoy zero tariffs and quotas on merchandise trade, avoiding large-scale trade cost increases. Without a doubt, this is good news for the British and European economies affected by the epidemic.

Compared to “no-deal Brexit,” this deal has allowed both parties to “break free” to a great extent. But in the short term, even if there is a new deal to go with it, the trade flow between Britain and Europe is still not as smooth as before. How to adapt to the new business relationship as soon as possible is a challenge that both government agencies and commercial companies will face.

The economic and trade relations between the two parties are still facing short-term adjustments and long-term problems.

Analysts said that from now on, the flow of people and goods in Britain and Europe may not be as good as before, and the new customs inspection and other procedures will also increase uncertainty. The port of Dover closest to the European continent is likely to be “full of vehicles.” The British government has announced the establishment of a border control center to monitor and analyze the entry of goods and people through technical means in real time in order to minimize possible border chaos.

In the field of goods trade, Adam Marshall, director general of the British Chamber of Commerce, said that bilateral trade still faces “huge new non-tariff barriers”. The Welsh Farmers Association believes that three-quarters of Welsh food and drink exports go to the European Union, with the cost of non-tariff barriers expected to rise by 4-8% next year. For the British auto industry, even if a trade deal is struck, industry costs will increase by 14.1 billion pounds.

In the field of transnational employment, it will be more difficult for British and EU citizens to find work in each other’s country. The European Union no longer automatically recognizes the professional qualifications of British doctors, architects, engineers, lawyers and accountants. Relevant staff must meet local qualification certification requirements to practice in the EU. Additionally, the new UK immigration regulations clearly require a certain level of English and salary thresholds, which can result in a shortage of low-skilled workers.

Analysts believe that financial services, one of the UK’s mainstay industries, faces greater difficulties than trade in goods. The degree of access to the financial services industry in the EU member states will not be comparable to that before Brexit. Rajneesh Narula, an international trade relations expert at the University of Reading in the UK, believes the next step for the UK is to initiate key negotiations with the EU in a number of industries related to financial services, such as banking, finance, insurance and telecommunications.

In addition, the experts noted that the current agreement adopts a deferred solution method for some contradictions, which adds uncertainty to the future.

The British government has always emphasized that after Brexit, there will be opportunities to freely negotiate and sign trade deals with other countries to create a globalized Britain. After reaching a trade agreement with the European Union, another important goal of the British government is to quickly sign a trade agreement with the United States. However, there are significant differences between the two countries regarding the specific content of the agreement. The British side is concerned about the entry of US products below EU standards into the UK and is unwilling to open up the British national healthcare system to US investors, which will create obstacles to negotiations between the two parts.

The agitation for Scottish independence has resumed, saying it will soon rejoin the European Union.

“Europe, Scotland will be back soon.” According to a report by “Russia Today” (RT), on December 31, 2020, local time, minutes after the future relationship agreement between the United Kingdom and the European Union came into force, the Chief Minister of the Government of Scotland Gula Sturgeon tweeted that Scotland will rejoin the European Union “soon”.

Sturgeon said in a tweet: “Europe, Scotland will be back soon. Keep the lights on.” Sturgeon also accompanied a photo of the Scottish lights turned on outside the European Commission headquarters in Brussels, Belgium.

At 23:00 GMT on December 31, 2020 (24:00 Central European Time), the UK officially ended its ‘Brexit’ transition period and officially left the EU Common Market. The trade and cooperation agreement between the UK and Europe reached on December 24, 2020 has been temporarily implemented.

In the 2016 “Brexit” referendum, the UK decided to leave the European Union. After difficult negotiations, the two sides agreed that the UK will officially leave the European Union on January 31, 2020, but set a transition period until December 31, 2020. The UK and the EU hope to negotiate future relations and trade agreements between the UK and the EU during this transition period, finally reaching an agreement on the night of December 24, 2020.

With regard to Sturgeon’s remarks, I must mention Scotland’s attitude towards the “Brexit” issue. According to previous reports, analysts said part of the “Brexit” deal has triggered discontent within the UK, especially in Scotland, and may to some extent intensify the region’s independence. After the announcement of the deal between Britain and Europe, Sturgeon said there is no deal to make up for the losses caused by Britain’s “Brexit” in Scotland. “It is time to plan our future as an independent European country.”

Editor in Charge: Yang Yalong