Been a lot of discussion recently around services trade in the deal between the UK and EU. Having read through the agreement over the past couple of days, my impressions👇

First off, services is definitely included. Question for service providers, is will it be enough?

1/N

My overall impression is that the EU has offered among the best in class for its FTAs similar to Canada and Japan.

But this access is a far cry from access to the Single Market and how is constructed as part of a trade agreement for the EU reflects that.

2/n

Unlike for goods trade, once you've got a product through all the customs and regulatory procedures into the EU, it can be sold anywhere in the EU, or its "entered circulation".

For services trade, that isn't the case. Its still done on a member state by member state level.

3/n

This is even true in the trade agreement itself where although the provisions set out in the Services and Investment chapter sounds awfully good - lots of principles about the freedom to establish and allowing the cross-border trade in services.

It's only when...

4/n

You get to the annexes and you realise both the EU and individual member states have put entry conditions across huge areas of different services sectors both now (existing measures) & in the future. Don't worry too much about the future reservations, it's the existing ones.

5/n

1/ Quick thread. At the end of the third week of Brexit being "done", I can only say that I'm exhausted.

Immediate pressures on companies who have been trading goods have been on grappling with all of the new customs and regulatory requirements.

2/ It's clear that agrifood businesses have been the hardest hit due to the SPS checks and other requirements.

But for others, the shift from a distributor model to importer/exporter has been a challenge. This hasn't been helped by certain IT system not working as planned.

3/ So are these "teething problems"? Companies are grappling with the new systems & formalities.

Some are, but many others aren't.

Worth noting that freight volumes are still below average. But stockpiles are running low, coming weeks are going to be interesting.

4/ Two issues that are immediately facing many businesses that won't be addressed by sorting this teething period.

First, many businesses are facing the largest shift in their cost base in a generation.

5/ This comes from the cost of dealing with the customs procedures, upgrading IT systems to manage the new requirements, setting up European operating centres to comply with regulatory requirements, new immigration costs, the list goes on.