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Canada Experts: Numerous Brexit questions unanswered despite the treaty.

11:05  20 january  2021
11:05  20 january  2021 Source:   t3n.de

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The United Kingdom and European Union have reached a post- Brexit trade agreement after months of fraught negotiations. The breakthrough averts a much-feared "no-deal" scenario that would have sparked economic chaos and risked major disruption to the flow of goods and medicines.

Despite the agreement on a Brexit trade pact, experts still see many questions in the relationship between Great Britain and the EU unanswered.

Die Flaggen von Großbritannien und der Europäischen Union. © Monika Skolimowska / dpa-Zentralbild / dpa The flags of Great Britain and the European Union.

For example, there are no agreements on the services that are particularly important for the British economy, as the business law firm Luther emphasizes in an analysis that is available to the German Press Agency.

"The lack of such regulations can already lead to restrictions for cooperation, for example in the area of ​​clinical studies." The pharmaceutical industry, but also medical technology companies, would be confronted with new requirements and considerable bureaucratic effort.

Experts: Numerous Brexit questions unanswered despite the treaty.

 Experts: Numerous Brexit questions unanswered despite the treaty. Despite the agreement on a Brexit trade pact, experts still see many questions in the relationship between Great Britain and the EU unanswered. © Monika Skolimowska / dpa-Zentralbild / dpa The flags of Great Britain and the European Union. For example, there are no agreements on the services that are particularly important for the British economy, as the business law firm Luther emphasizes in an analysis that is available to the German Press Agency.

Level playing field: A set of rules to ensure that one country, or group of countries, doesn't have an unfair advantage over another. This can involve areas such as workers' rights and environmental standards. Free trade agreements like the Brexit deal often include level playing field measures.

Under the post Brexit trade deal with the EU, the UK has agreed to conditions that maintain fair competition, or a level playing field, between the two sides. However, the EU's ambassador to the UK, Joao Vale de Almeida, said Brussels could retaliate if Boris Johnson's government went too far in with

In addition, questions regarding data protection, cross-border and international export controls and company law remain open. The legal experts emphasize that the agreement does not contain any agreements on cooperation in matters of insolvency law. There are also decisive changes in antitrust law and investment protection. Instead of the usual direct right of action for investors, “only a state-to-state arbitration mechanism is provided”.

In its analysis, the commercial law firm emphasizes the extent of the difficulties: Due to the short time since the publication, high complexity and detailed questions, it was hardly possible for companies to prepare for the implementation of the new regulations. "Small and medium-sized companies in particular now run the risk of unintentionally violating the rules," said the head of Luther's London office, York-Alexander von Massenbach.

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The Brexit trade pact goes beyond other free trade agreements of the EU in some points because it does not contain any quantity restrictions and basically includes all types of goods. "But here too, companies will have to comply with many formalities and regulations in the future when they leave the customs union and the common internal market." The lack of general recognition of product regulations will lead to goods controls at the borders. Since Brexit, there have been delays in the movement of goods between the EU and Great Britain. The main reason is customs hurdles.

The EU and Great Britain had long bitterly negotiated the deal. The last politically highly controversial points of contention - fisheries, fair competition and the question of the enforceability of the agreements - were only resolved on Christmas Eve. The bottom line is that the EU has prevailed, the law firm is convinced: "Looking at the outcome of the negotiations, it becomes clear that the United Kingdom has accepted cuts for its own economy in its quest for sovereignty."

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