UK, EU clinch Christmas trade deal, yet not a gift for all

0 Comment(s)Print E-mail Xinhua, December 25, 2020
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Both German and French leaders welcomed the deal. German Chancellor Angela Merkel said the trade pact is "of historical importance." "With the agreement, we are creating the basis for a new chapter in our relationship," she said in a statement.

"European unity and steadfastness have paid off," French President Emmanuel Macron said in reaction to the deal. "Europe is moving forward and can look to the future, united, sovereign and strong," he added.

European scholars also welcomed the deal.

"With the conclusion of the agreement, there is now more predictability and certainty for future trade relations between the EU and the UK," said Achim Wambach, president of the Leibniz Center for European Economic Research (ZEW) based in Germany.

Vehicles line up outside the entrance of the closed Port of Dover in Dover, Britain, on Dec. 22, 2020. [Photo/Xinhua]

A commitment yet to be tested

The trade deal will certainly help avoid a Brexit cliff edge on Jan. 1, 2021, but it is not a Christmas gift for all.

The deal "is a disastrous Brexit outcome for Scottish farmers...and like all other aspects of Brexit, foisted on Scotland against our will," Scottish First Minister Nicola Sturgeon wrote on Twitter.

"Before the spin starts, it's worth remembering that Brexit is happening against Scotland's will. And there is no deal that will ever make up for what Brexit takes away from us," she said.

Observers also warned that trade between the two sides could still be disrupted by a huge amount of new paperwork and border checks.

Tony Danker, director-general of the Confederation of British Industry (CBI), said the deal "will come as a huge relief to British business at a time when resilience is at an all-time low. But coming so late in the day it is vital that both sides take instant steps to keep trade moving and services flowing while firms adjust."

Danker said companies should immediately study the details when they can, to understand the implications for their companies, customers and clients, adding immediate guidance from government is required across all sectors.

"We need urgent confirmation of grace periods to smooth the cliff edge on everything from data to rules of origin and we need to ensure we keep goods moving across borders," Danker added.

Rajneesh Narula, the John H. Dunning Chair of International Business Regulation at the Henley Business School, University of Reading, agreed. There are difficult months ahead as many large issues are left out of the current deal, which will add uncertainties to the UK-EU future relations, he said.

Meanwhile, the trade deal did little for the service sector, which makes up 80 percent of the British economy.

"Not one word has been said about services. They have kicked that ball further down the road," Narula said.

"It means that everything to do with services, that is to say banking, finance and insurance, and telecoms. These are all issues that will be negotiated in the new saga," Narula added. (1 British pound = 1.35 U.S. dollars) 

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