Most of the areas are not covered under this deal. The free movement of people in EU and UK will end. That construes people will need to work in each other territory with visa. British financial sectors will lose their authorization to sell their products in single market. Since it holds 7% of UK economy, it is likely to be a major topic in 2021. Additionally, there is no deal which enables the products to be recognized automatically in each other’s market. That means, it will create additional costs in future.
In the short term, it gave UK autonomy to develop its own regulations and standards and opens the door for it to negotiate free trade agreements with other countries while the deal ends the period of political and economic turbulence.
UK and Turkey signed a text of “continuity agreement” that ensures the existing trading terms between Ankara — which has a customs union agreement with Brussels — and London. Bilateral trade between the countries was worth nearly £19bn last year.
The UK is the biggest export market for home appliances that are manufactured in Turkey. The UK remains Turkey’s second-biggest export market. The agreement contains a review clause that requires the two nations to reconvene within the next two years to discuss expanding the deal further to include services, including digital services, and more liberal regulations on trade and agriculture.
With this agreement, there status quo with EU regulations are secured. However, it gives Turkey to change the clauses which Turkey wanted to change concerning EU Custom Union terms since they are largely against Turkey’s favor. If the regulations will be changed within two years, the deal can be regarded as success.
However the broader political developments in the region have the possibility to draw London into the conflicts which Ankara has different views than EU and Washington. London acted so quick to secure the trade deal because UK recognized that it has to take side with EU and US since they are more important than Turkey in most aspects of relations. Moreover, the trade deal is signed and we shall expect to see UK enchaining its voice to engage in dialogue with its neighbors to resolve their differences.
