AIA RESPONDS TO THE EU-UK TRADE AND COOPERATION AGREEMENT

On 24 December 2020, the UK and the EU reached an agreement on the terms of their future relationship and the EU-UK Trade and Cooperation Agreement came into force from 1 January 2021.

AIA chief executive, Philip Turnbull said: “Avoiding the economic impact of a no deal scenario has been largely welcomed by businesses, along with the opportunities of new trading relationships throughout the world and the prospect of developing the future relationship with the EU. At the end of a year which has seen significant economic upheaval and trading disruption, the agreement offers businesses the clarity and certainty that they require to plan effectively for the future.

“However, it is important to realise the practicalities of this new agreement and whilst free trade is a welcome outcome, it does not mean a continuation of the previous arrangements. Businesses will have to navigate new rules and requirements, with some sectors feeling its consequences more acutely than others and leaving the single market and customs union under these terms may also see businesses incur additional costs.

"In relation to financial and related professional services there are still some outstanding areas and the UK and the EU have agreed in a non-binding declaration to establish a framework for regulatory co-operation by March 2021. AIA supports a future agreement that offers regulatory and supervisory cooperation, maintains mutual access to skills and talent and protects financial services."

Planning and preparation are now key to all businesses to ensure a smooth transition. AIA will continue to provide members with the latest information and guidance to ensure that they can guide their clients on the most effective Brexit strategy. Resources continue to be updated and are available to members via their online account (MyAIA/Guidance and Insights/Accounting & Auditing Insights).

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In relation to financial and related professional services there are still some outstanding areas and the UK and the EU have agreed in a non-binding declaration to establish a framework for regulatory co-operation by March 2021. AIA supports a future agreement that offers regulatory and supervisory cooperation, maintains mutual access to skills and talent and protects financial services.