Brexit Countdown: Implications For Current And Future Commercial Contracts

In view of the next European summit set for the 15th-16th of October to discuss the EU budget 2021-2027, the spotlight has returned on the EU-UK trade agreement which has not yet been reached. The outstanding problems concern competition, the fishing market, and the exports, and even if – according to forecasts by the London School of Economics – a "no-deal" would have an impact on the British economy at least twice as much as that caused so-far by the Covid-19 pandemic, currently this possibility remains open. Companies must prepare for Brexit in advance, by identifying and addressing its risks and challenges.

Regardless of any trade agreement between the UK and the EU, next year will bring additional costs for the suppliers of goods directed from and to the UK. The commercial contracts clauses that will remain in effect beyond the Brexit transition period need to be reviewed. In addition, certain long-term contracts may no longer be adequate and will need to be