MPs were expected to pass the EU (Future Relationship) Bill in one day this week, implementing the FTA in time for the end of the transition period at 11pm on 31 December 2020.
Charles Brasted, co-lead of the Hogan Lovells Brexit taskforce, said: ‘This is a seminal moment for the UK.
‘One thing that we know will change is how rules are interpreted and applied in the UK, in the context of two separate EU and UK systems. Vast amounts of previously EU-derived law and regulation in the UK will be on a new legal footing from 1 January 2021 and potentially open to reinterpretation in its new post-Brexit context.
‘Businesses in the UK whose operations are currently affected by EU law should be prepared to manage the risks and capitalise on the opportunities that could arise from this legal uncertainty. Any area of law, regulation or policy in the UK previously touched by EU law, is potentially affected. Businesses and their advisors cannot assume that familiar laws and rules will not become faux amis.’
Aline Doussin, Hogan Lovells’ head of the UK trade practice, said the trade deal provided ‘welcome clarity on tariffs, quotas and other trade barriers coming into force for businesses exporting internationally.
‘However, it is worth noting that a trade deal with the EU27 may minimise the financial impacts of paying duties but it will not make trade frictionless with the EU nor will it eliminate customs checks because border checks are now legally required for EU27 and UK trade. We would still expect some border delays on both sides of the Channel, so businesses should continue to implement their customs Brexit plans regardless of the terms of the FTA and continue to prepare to ensure they are able to continue to trade with the EU27 from 1 January onwards.’
Law Society president David Greene said the FTA, which includes ‘some elements’ for legal services, has ‘averted the worst outcome’.
Greene said: ‘Legal services are not only hugely valuable to our national economy but also to our global reputation―worth £5bn to exports―and so for us this cannot be the end of the story but the starting point: and we will be working with national governments, bars and law societies across the EU to improve the framework for the international legal practice of non-EU lawyers, for their joint practice with local lawyers and for international legal co-operation for the benefit of all clients.
‘We also continue to urge the EU to support the UK’s accession to the Lugano Convention which would allow civil and commercial judgments to be recognised cross-border and allow ordinary citizens and small and medium size businesses to enforce their rights without taking up prohibitively expensive actions in multiple courts.
‘Furthermore, we are urging early determination on data protection adequacy to come on the tailcoats of the deal to ensure data flows between the UK and EU can continue.’
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