Britain urges businesses to prepare for Brexit

London

BRITAIN on Monday urged businesses to prepare for Brexit, just days before a transition period designed to smooth the UK's departure from the European Union comes to an end.

The move comes as 27 EU member states gave the green light on Monday for the post-Brexit trade deal to go into effect on Jan 1.

Britain and the EU clinched a trade deal on Thursday - one which preserves zero-tariff and zero-quota access to the bloc's single market but which will still cause disruption.

The transition period, under which Britain stayed aligned to the EU's trading and regulatory rules, ends at 2300 GMT on Dec 31.

"The deal is done, but with big change comes challenge and opportunity," cabinet office minister Michael Gove said in a statement, adding that businesses need to adjust to Britain's departure from the EU Single Market and Customs Union.

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"There are practical and procedural changes that businesses and citizens need to get ready for, and time to make these final preparations is very short."

He is confident that most British businesses have made preparations for the end of the Brexit transition period.

"Yes. The overwhelming majority of businesses have been getting ready, absolutely."

"I think business is broadly in a good place but inevitably with any change, with any transition, there are occasional bumpy moments," he said.

The transition period was initially agreed to keep existing trade ties unchanged for 21 months after the original planned Brexit date of March 29, 2019.

But the period was not extended after Brexit was delayed until Jan 31, 2020, and, with over 1,000 pages of trade agreement published in full on Saturday, businesses have less than a week to adjust to the new rules.

Britain had urged businesses to make preparations for the end of the transition period prior to the end of trade negotiations, saying many of the changes they needed to make would apply regardless of the outcome of the talks.

The government said that businesses needed to understand new rules on importing and exporting goods between the EU and Great Britain, and the different rules that apply to trade with Northern Ireland.

Businesses will also need to make customs declarations on EU trade, while hauliers need a permit to go to ports in the county of Kent or risk a fine.

Meanwhile, ambassadors from EU capitals met in Brussels to nod through the accord, using a procedure which will take effect at 3:00 pm (1400 GMT) on Tuesday.

This will provisionally allow tariff-free trade with Britain to continue after it leaves the EU single market at the New Year.

Sebastian Fischer, spokesman for the German presidency of the EU, said: "EU Ambassadors have unanimously approved the provisional application of the EU-UK Trade and Cooperation Agreement."

The member states' adoption of the plan allows it to come into effect in time to head off disruption of cross-Channel trade. But the deal must still be ratified retrospectively by the European Parliament, probably in late February. REUTERS, AFP