The Brexit deal covers a wide variety of critical topics that all investors need to be aware of even if you are not based in the UK or EU, covering trade, travel and most importantly fishing.
The complete agreement is a rather involved document at over 1200 pages in length, however some of the more pertinent topics are highlighted in this article.
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Trade
There will be no tariffs nor quotas between the UK and EU from 1 January 2021. This deal has removed the concern of rising prices of many goods that loomed over Brexit for some time. However even with no extra charges on goods or limits on the amount that can be traded, there will be additional checks at the border e.g. safety checks and customs declarations. Thus there could be disruptions for businesses at the ports should they fail to update their procedures and prepare for the changes.
Services and Qualifications
Service industries such as banking and accountancy will lose their automatic right of access to EU markets and will face some new restrictions. Rather than following one set of rules for the whole of the EU, UK companies will need to comply with regulations in each individual country.
Professional qualifications such as doctors and architects will no longer have automatic recognition. This will make it harder for people with qualifications awarded in the UK to sell their services in the EU. Individuals will need to check each countries rules to verify their qualification is still recognised.
The UK and the EU have both stated they will continue talks to resolve the sticking points and improve access to the service sector in the future.
Travel
UK nationals will require a visa for any stay longer than 90 days in the EU within a 180 day period. The European Health Insurance Card (EHIC) is still valid until the stated expiration date on the document - the UK will be replacing this with the UK Global Health Insurance Card, further details are yet to be released.
UK mobile phone operators are now able to charge for roaming after having the ban on additional charges lifted - even though both sides are encouraging operators to provide transparent and reasonable rates for roaming, travelers should check with their phone company prior to their trip.
Fishing
Over the next five and a half years the UK will gain a greater share of the fish from its own waters. Fishing was the hardest and final issue to be resolved during negotiations and some UK fisherman are unhappy with the arrangement arguing that it does not provide enough control back to the UK of its own waters.
The UK could theoretically chose to ban EU fishing boats from 2026, but the EU would likely retaliate by taxing British fish - seeing as how most of UK fish is exported to the EU it is probable this will be a source of significant debate when regular talks on fishing access proceed in 2026.
European Court of Justice
The European Court of Justice (ECJ) will no longer have any role in the UK with the exception of Northern Ireland (as it still follows some EU trade rules) - this was a core demand of Brexit supporters who wanted the UK to "take back control" of her own laws. Any disputes that can not be resolved between the UK and the EU will be referred to an independent tribunal.
Security and data
The UK will lose its automatic access to key security databases and its membership to Europol, the EU's law enforcement agency. However the UK should be able to gain access to the relevant security databases upon request and will have a presence in Europol headquarters (similar to the US).
Many of the rules regarding the storage and processing of data is still to be decided as the UK is no longer obligated to follow the EU standards of data protection. However data will continue to be exchanged as is for at least four months, so long as the UK does not change its data protection rules.
This
article is not advice and has not been prepared in accordance with legal
requirements designed to promote the independence of investment research – no
recommendations are given in the buying, selling or holding of any investments.
Past performance is not a guide to the future. Investments rise and fall in
value so investors could make a loss. Always seek professional advice.