DLA Piper launches Trade Truths

Each week, DLA Piper’s Trade Truths will cut through the political noise and technical jargon to explain in simple terms, how international trade issues will affect your commercial interests, and provide practical advice on how to navigate them.

In times of widespread change, clarity is essential.

On 1 January 2021, subject to the terms of any negotiated trade deal, the UK and the EU’s trade policies will diverge for the first time in over forty years. In London, a new Department of International Trade has been created to breathe life into “global Britain”, a policy which has yet to be fully defined. In Brussels, the European Commission is torn between its traditional commitment to open trade and a renewed protectionist push within its ranks.

Change is therefore on the way. There will be significant shifts in how trade policy is developed and implemented in the UK and EU, which will affect how businesses trade from the EU into the UK and vice versa.

If your business is affected, you should understand what those changes will be, and start planning an effective response before the end of the transition period, on 31 December 2020.

Key issues that your business may need to consider include:

• Trading on WTO or most favoured nation (MFN) terms and what it means.
• If your supply chains benefit from EU Free Trade Agreements, what will happen to those trade benefits once the UK leaves the EU – which ones will remain, and which will be replaced or no longer be relevant at all?
• Changes to the trade remedies process(es) and the mechanisms for initiating a dumping, subsidy and safeguarding investigation in the UK.
• Changes to the state aid regime and foreign direct investment screening controls and their effect.
• The implementation of the Northern Ireland Protocol, which puts in place a trade border within the UK, and the impact of other changes to customs procedures and rules of origin.
• The absence of a strong British voice in Brussels and UK business interests becoming increasingly side-lined in the EU.

How we can help you

With just over 100 days to go until the transition period expires, it is important that businesses continue to consider the wider impact of Brexit on their commercial objectives. DLA Piper’s team of lawyers, trade economists and government affairs professionals are here to support you in preparation for a range of new legal, regulatory and policy changes.

These include how to effectively:

• prepare your business to trade on WTO terms at the beginning of next year. With our breadth of knowledge and understanding on regulatory and trade-related changes, we can devise and help you implement flexible Brexit-contingency plans, so that necessary adjustments can be made easily if a deal is reached before the end of the year;
• analyse the key tariff and non-tariff barriers in your target markets to help you engage with the UK and EU governments, and EU institutions, to inform and influence the outcome of negotiations in your interest;
• engage with key decision-makers in the UK government on issues such as anti-dumping, safeguarding, trade remedies and dispute settlement when your commercial interests are undermined; and
• manage the costs and consequences of regulatory divergence by identifying risks early and building strong relationships in the EU and Europe more widely with both decision makers and the business community to ensure that your business and commercial environment remains stable.

Coming up next in the DLA Piper Trade Truths series

In light of this weekend's announcement of a UK internal market bill, we provide a practical introduction to trade remedies, investigations and state aid; and what each mean for your business planning.