Impact of BREXIT and Trade and Cooperation Act on the UK Businesses

The impact of BREXIT and the Trade and Cooperation Act on the UK Businesses
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The impact of BREXIT and the Trade and Cooperation Act on the UK Businesses
Introduction
BREXIT was one of the most contentious issues of the past five years for the United Kingdom (UK) and the country members of the European Union (EU). At the beginning of the thoughts of exiting the EU, different sentiments arose as to the consequential impact of such a move for both EU entities, including the UK, that was to move out. At the same time, it took longer for the real Brexit to be arrived at, under common grounds of agreements for the UK and the EU members under a Trade and Cooperation Agreement, which was meant to collectively include both sides’ economic interests in European trade instead of what had been perceived as being costly primarily to the UK while benefitting other European countries under the EU trade laws. After a long wait, an agreement between the UK and the EU member countries was reached on the Christmas of 2020. While there were other global concerns at the time, such as the emergence of the COVID-19 pandemic, which shadowed the actual real impacts of the BREXIT for Britain and the EU, results of trade for the UK and the EU members attested to the actual impacts of the BREXIT later on, several months after the real BREXIT (Webber, Foster & Bounds, 2021). The UK parliaments documented some of those impacts of the Trade and Cooperation Agreement, later discussed in the UK legal house, and later presented for debate across the media and scholarly fields of studies. From the results, it became apparent that there were actual real impacts of the BREXIT, and while the UK and foreseen an advantageous future after the BREXIT, the actual impacts contained many disadvantages for the country, contrary to the previous perception. In addition, while the settlement of the Trade and Cooperation Agreement was considered much better than a no-deal agreement, their subsequent implementation brought into certain business barriers in administration frameworks and regulatory systems.
Barriers to trade resulting from the Trade and Cooperation Agreement as opposed to the barriers before BREXIT
Tariff Barriers
Logistically, the TCA or what is commonly known as the Trade and Cooperation Agreement, resulted in the collective agreement of the condition of levying tariffs on goods originating in the EU and the UK by classifying goods that qualify for zero tariffs as only those originating or emanating in the EU and the UK. The implication of this regulatory condition meant that goods that did not originate in these two regions did not qualify for zero tariffs (Welfens, 2019). Indirectly, this condition translated to the fact that goods originating outside the EU and the UK had to be levied tariffs. The direct meaning is that all goods to the UK and the EU had to be taxed to be accepted in the two economic regions. Clearly, all goods from developing countries such as Africa and Asia and emerging economies such as the BRIC had to have all their goods levied tariffs if those goods had to be accepted into the EU market or the UK. Logistically, all movements of goods from these regions had to be st...