What’s New For Small Businesses This Week? – 11/12/2020

What’s New For Small Businesses This Week? – 11/12/2020

This week, Prime Minister Boris Johnson has told businesses to prepare to leave the European Union on January 1 in a no-deal threat to the EU.

A no-deal would imply border checks and taxes would be introduced for goods traveling between the UK and the EU.

“Strong possibility of no trade deal with EU”, says Prime Minister Boris Johnson

It seems now is the time for firms and people to prepare for a no-deal outcome. Talks continue between the two sides, but the Prime Minister said they were “not yet there at all” in securing a deal.

Supermarkets, British firms, and other businesses have this Friday implored the government to strike a last-minute trade deal with the EU.

The UK Prime Minister and European Commission President, Ursula von der Leyen, have set a Sunday deadline to decide whether to keep talking or prepare for a no-deal break.

Ursula von der Leyen, said that a no-deal was the most probable outcome to the ongoing “difficult” talks. She added, “we will decide on Sunday whether we have the conditions for an agreement or not.”

Sunday’s deadline was set by the two leaders, after months of talks that failed to achieve an agreement.

Britain left the European Union on January 31 but has continued to follow the bloc’s rules during a transition period that lasts until the end of the year. Months of talks on a future trade deal have failed to bridge the gaps on three issues — fair-competition rules, fishing rights, and the governance of future disputes.

Supermarkets say food prices will rise, and according to the British Retail Consortium, 85 percent of foods imported from the EU are expected to face tariffs of more than 5 percent.

The EU has proposed contingency measures to make sure that air and road traffic can continue for six months after January 1. It also proposes that fishermen should retain access to each other’s waters for up to a year.

The British government said it would “look closely” at the proposals. The plans depend on the UK offering similar initiatives.

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