नमस्कार दोस्तों, in today's blog, we will know about Brexit deal. What would be the effects of Brexit deal on India? I will tell you everything about Brexit in short. Let's start with me.
Brexit deal is actually a withdrawal deal between United Kingdom(UK) and European Union (EU). We all know that UK has left European Union. EU is a economic and political union of 27 European countries. UK has, now withdraw from EU.
When UK withdraw from EU, a deal of new rules and regulations had to be agreed between UK and EU, called Brexit deal. This deal had to be also approved from UK parliament and EU parliament. After approval from UK's parliament, Brexit deal would be concluded and UK would left EU officially. The process has been going on since 2017. Now Brexit deal is done in December 2020.
Brexit deal is a 585 pages withdrawal agreement. Few major focuses of Brexit deal are on:
1. Financial and trade settlement between UK and EU.
2. Rights of Citizen living in each other's countries.
3. Border issues between UK and Republic of Ireland.
British law makers approved Brexit deal with free trade agreement: ZERO TARIFF and ZERO QUOTA . Now UK is not officially part of EU. New agreement ensure that no new tariffs or quotas would be imposed on UK's companies while importing/exporting to EU. Tariff free and quota free trade will be continue between UK and EU. But this new rule would be applicable on the products which will be manufactured in UK only. Hence UK has to show origin of products while exporting to EU.
Now let's see Brexit deal's effects on Indian Companies. This is a good sign for Indian companies. Because European Union is a large market and there are number of Indian companies like Tata motors, Tata steel, Biocon opened their offices in UK and do businesses in European market through UK. So all these Indian companies will be able to continue their businesses in European market through UK without any new tariff. Therefore Indian companies which are doing business in European market through UK will get the advantage of ZERO TARIFF AND ZERO QUOTA.
This is the end of blog. Write in comment box what do you think?
Thanking you
Blogger Comment
Facebook Comment