Brexit Rollover Agreements: What You Need to Know
With the United Kingdom officially leaving the European Union, the country is now focusing on securing new trade deals with countries outside of the EU. However, in the meantime, the UK is hoping to maintain its current trading relationships with countries it currently trades with as an EU member. This is where Brexit rollover agreements come in.
What are Brexit Rollover Agreements?
Brexit rollover agreements or continuity agreements are bilateral trade agreements that the UK is seeking to maintain continuity in trade with countries it currently trades with as an EU member. These agreements would replicate existing trade agreements between the EU and third-party countries that the UK currently benefits from.
Why are these Agreements Necessary?
These agreements are necessary to ensure that the UK continues to trade on the same terms as it currently does with these countries after Brexit. If there are no continuity agreements in place, the UK could face higher tariffs and trade barriers, which could lead to significant disruptions for UK businesses that rely on these trading relationships.
Which Countries have Negotiated Rollover Agreements with the UK?
The UK has been working on securing rollover agreements with countries such as Canada, Mexico, South Korea, Switzerland, Chile, and Israel. These agreements are essential to the UK`s economy, with trade with these countries accounting for £87 billion in 2019.
What are the Challenges Facing the UK in Securing these Agreements?
While many countries have shown interest in negotiating rollover agreements with the UK, some countries have been hesitant to do so. One of the main challenges facing the UK in securing these agreements is the uncertainty surrounding Brexit and the UK`s future trade policies.
Another challenge is the limited negotiating capacity of the UK, which is negotiating trade agreements with countries outside of the EU for the first time in 40 years. Negotiating these agreements is a complex process that requires significant resources and expertise.
Conclusion
Brexit rollover agreements are essential for the UK`s economy, and the country is working hard to secure them. While there are challenges, the UK remains committed to maintaining continuity in trade relationships with countries it currently trades with as an EU member. As negotiations continue, businesses should keep a close eye on developments and prepare for potential disruptions in their supply chains.
