Four and a half years after the June 2016 Brexit referendum, the UK and the EU have reached an agreement on their future trading relationship. The complete text of the UK-EU Trade and Cooperation Agreement (‘TCA’) spans some 1,246 pages and took effect from 1 January 2021.
Whilst the TCA now provides much welcome clarity for businesses, and details the many wider issues they need to consider, it is also important to acknowledge that many areas key to businesses were not covered by the deal, with further negotiations ongoing. These include final decisions on data adequacy and financial services equivalence. Furthermore, this TCA in its current form will not be the last Brexit agreement, with either side able to terminate it on 12 months’ notice, bring us back to a potential ‘no deal’ scenario. One thing is clear, Brexit is by no means over and the UK’s relationship with Europe will continue to evolve over the coming months and years ahead.