A Brexit deal at last

One week before the transition period ends, the EU and the UK reached an agreement for “Trade and Cooperation” that will govern wide areas of the future economic relationship between both sides. EU national governments have already signaled a quick ratification and an approval in the UK parliament should also be a given. The European Parliament is likely to take more time, but will, we think, approve the deal in the end as well. Although future trade between the EU and the UK will not be hampered by tariffs or quotas, there will nevertheless be trade frictions that will slow trade between both sides, particularly in the beginning. The fact that an agreement has been reached is by itself good news and establishes a potential framework for future cooperation in other areas not covered by the agreement.