The UK left the single market and customs union on 31 December, and new arrangements allowing for tariff-free trade in goods and close police and judicial cooperation have come into force.
The trade agreement – running to 2,000 pages – contains provisions on subjects ranging from civil nuclear cooperation and energy interconnections to fishing and aviation.
Stephen Phipson, chief executive of Make UK, said: “Industry will cautiously welcome the Government’s Christmas present of a provisional trade agreement that avoids the catastrophe of no deal; tariffs and quotas would have been a disaster for exporters but we will need to go through this with a fine tooth comb to understand exactly what the impact on manufacturers will be.
“The UK and EU must now urgently move to ensure provisional application from 1 January to ensure trade can continue as normal before formal ratification.
“It is important that with a deal in place the UK can start to build for the future with our European partners but there are many months of further hard work yet to come. Furthermore, It is also crucial to recognise that, even with an agreement, companies will need time to adapt to the huge and complex changes ahead.
“Even without the pandemic it would be stretching credibility to believe the companies that export hundreds of billions of pounds worth of goods each year could adapt to a fundamentally different trading model in just one working week.
“It is in everyone’s interest for the UK and EU to jointly agree that with the legal start of this deal significant easements and an adjustment period, with review clauses if necessary, are vital. This will ensure the new systems and processes which will underpin this trade agreement, and the companies that will rely on them, can acclimatise successfully.”
The deal was also welcomed by the aerospace industry and ADS chief executive Paul Everitt said: “The UK aerospace, defence, space and security industries welcome the agreement of a deal on the UK’s future relationship with the EU. A deal provides the best framework for our relationship with European allies and industrial partners.
“We recognise the deal does not meet all our ambitions and will examine the full legal text to ensure priority areas including aviation safety and chemicals regulation, customs and border control, and Northern Ireland are appropriately addressed.
“There is now just one week remaining until the end of the transition period, and it will be difficult for businesses to be ready in time.
“The Government must issue swift, clear and comprehensive advice to businesses on preparations, and work urgently to put all necessary arrangements in place.”
