Services are the predominant driver of the UK economy, contributing 79% of GDP and accounting for 45% of total UK exports. Globally, trade in services has increased at a faster rate than trade in manufactured products since 2011.
From 1 January 2021, the UK will no longer operate under the European Economic Area (EEA) regulations for the cross-border trade in services. This means that the rights and protections provided by the EU Directives and EU Treaty rights of freedom of movement and freedom of establishment will no longer apply to the UK.
UK businesses will no longer be treated as if they were local businesses. Services provided by UK businesses and professionals will be regarded as originating from a ‘third country’. As a result, UK businesses and service providers may face additional legal, regulatory and administrative barriers which you need to plan for.