Both parties could continue to negotiate after the end of the transition period — this process is technically separate from trade negotiations. The political declaration provides for the granting of a suitable status to the United Kingdom before the end of the transition period until December 2020 and confirms that the European Commission will begin the adequacy review as soon as possible after the UK`s withdrawal Immediately after the announcement of a revised withdrawal agreement on 17 October 2019, Labour, the Liberal Democrats and the DUP said they could not support the new deal.  Four years after the backstop came into force in Northern Ireland, the elected representatives of Northern Ireland may decide by a simple majority whether or not to continue to apply EU legislation applicable in Northern Ireland. There is no indication of what would happen if consent to follow-up were withheld. A free trade agreement will indirectly have a positive impact on financial services, as it would increase the sense of finding a constructive solution to other problems, such as data flows, trading in equities and derivatives, and the results of the equivalence of the investment bank. Companies are starting to prepare stocks of drugs in the event of a delay. The UK could also agree to recognise the assessments of the European Medicines Agency. An agreement on mutual recognition of good manufacturing practices could be concluded separately from a trade agreement and the Northern Ireland Protocol could be phased in more than a year for medicines, allowing industry more time to implement the necessary changes. During the transitional period, the UK and the EU-27 will seek to conclude the agreement that will strengthen their trade relations after the end of the transition period.
On the basis of the revised political declaration, the EU and the United Kingdom appear to be aiming for a comprehensive but “classic” free trade agreement for goods, services and investment. The political statement is thin in detail, but trade in goods will be based on a free trade agreement that will at least guarantee that there will be no tariffs or quotas, as well as some degree of regulatory alignment with the EU. However, as a result of the free trade agreement, customs controls are required, requiring each party to prove that the goods originate from their respective customs territory, in order to obtain duty-free treatment. This means that the UK and the EU-27 must now agree on detailed rules of origin. This is probably a complex and tedious process. At least companies need to think about the rules of origin they want for different products and start putting pressure on them as soon as the UK and eu start negotiating the new free trade agreement. It is encouraging to note that the scope of the future trade regime appears to encompass services, including financial services and investment (although the agreement is in turn very detailed) and that it provides assurance that the agreement on future relations will offer a liberalisation of trade in services well beyond the obligations of the United Kingdom and the WTO.