Table of contents: 1. Introduction – 2. End of free movement of workers and new immigration system in the UK – 3. End of free movement of goods – 4. New cross-border trade rules. Major impacts on contracts, corporate and M&A transactions – 5. Major impacts on financial services – 6. Major impacts on IP, information technology and data protection – 7. Major impact on tax matters. Main Italian tax consequences – 8. New regulation on aviation – 9. Litigation. The issue of conflict of law regulation
On December 24, 2020, after intensive down-to-the-wire negotiations, the European Commission and the UK Government reached an agreement on the terms of future trade and cooperation between the European Union (EU) and United Kingdom (UK) in view of Brexit being effective by January 1, 2021.
The agreement reached, called Trade and Cooperation Agreement (TCA), outlines the future economic relationships between the EU and UK. A significant component of the TCA regards the free trade, ensuring that no tariffs or quotas are put in place for the cross-border trade of rule-compliant goods. The TCA also sets out a framework for cooperation on energy, transport, social security and standard-setting on various matters, including to climate change, labor rights and tax transparency.
In the light of the above, from January 1, 2021, the UK left the EU Single Market and Customs Union, and EU policies and international agreements entered into at an EU level ceased to apply in UK. The free movement of persons, goods, services and capital between the UK and EU ended. Therefore, the EU and the UK form now two separate markets and two distinct regulatory and legal frameworks, creating barriers to trade goods and services and to cross border mobility and exchanges.
Amid Brexit changes, this checklist provides some highlights on legal issues together with an essential to-do-list for companies.
- Fabio Ilacqua
Partner – Head of New York Office
GOP USA, LLC – One Rockefeller Plaza, Suite 1610,
New York, NY 10020 Tel.: +1 212 957 9600 E-mail: firstname.lastname@example.org
Compliments of Gianni & Origoni – a member of the EACCNY.