Following a gruelling nine-month negotiation process, the UK and EU finally agreed and signed a post-
Brexit trade deal just a day before the transition period ended.  Although the UK officially left the EU
on 31 January 2020, trade had continued on the same basis during the 11-month transition period. The two entities moved to new arrangements at 23:00 GMT on 31 December when the UK formally severed its ties with the EU.
Negotiations surrounding the ‘EU-UK Trade and Co-operation Agreement’ were concluded on Christmas Eve and
the 27 EU member states gave written approval for the agreement on 29 December. The following day MPs
overwhelmingly approved the deal in a parliamentary vote, with the bill backed by a Commons majority of 521 to 73.
That paved the way for European Commission President Ursula von der Leyen to sign the treaty in Brussels on
the morning of 30 December and, later  that day, the treaty was flown to the UK for Prime Minister Boris Johnson to sign in Downing Street. Business groups expressed widespread relief that a deal, which preserves tariff and quota-free EU-UK trade for goods and components worth around £660bn, had ultimately been agreed. However, they also urged the government to provide quick and clear guidance to ensure  trade and services can keep flowing.
Commenting on the deal, CBI Director General Tony Danker said, “This will come as a huge relief to British business.
But coming so late in the day it is vital that both sides take instant steps to keep trade moving and services flowing
while firms adjust. Immediate guidance from government is required across all sectors.” The government has acknowledged the new relationship will involve ‘practical and procedural changes’ and warned of ‘bumpy moments’ for UK businesses as they get to grips with the new trading SFFS Economic Review_Dec 20rules.