{"id":33755,"date":"2020-03-09T10:47:35","date_gmt":"2020-03-09T02:47:35","guid":{"rendered":"https:\/\/zegal.com\/?p=33755"},"modified":"2023-03-10T13:52:57","modified_gmt":"2023-03-10T05:52:57","slug":"the-post-brexit-relationship-between-hong-kong-singapore-and-the-uk","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-hk\/blog\/post\/the-post-brexit-relationship-between-hong-kong-singapore-and-the-uk\/","title":{"rendered":"The Post-Brexit Relationship Between Hong Kong, Singapore, and the UK"},"content":{"rendered":"
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It has been almost four<\/span> <\/span>years since the first UK referendum where 52% of the UK population voted in <\/span>favour<\/span> of leaving the European Union. <\/span><\/p>\n

Flash-forward to 9 January 2020, UK Prime Minister Boris Johnson\u2019s Withdrawal Agreement Bill received 99% of the UK Parliament votes. This determined that 31 January 2020 be the date the UK officially left the EU. <\/span><\/p>\n

Now set in motion is a transition period where the EU and the UK will discuss the nature of their future relations until the 31 December 2020. <\/span><\/p>\n

While the UK is still subject to EU laws and sanctions, despite not being a Member State, there is no doubt that there is lingering uncertainty for the future. However, this time is especially prudent for the UK, as during this period they will be able to contact international <\/span>organisations<\/span> and third countries to <\/span>finalise<\/span> international agreements. <\/span><\/p>\n

There is no dispute that the UK has had a long history with Hong Kong and Singapore; however, the question for Hong Kong & Singapore businesses<\/span> <\/span>seems to be: How will Brexit affect Hong Kong – UK and Singapore – UK relations? <\/span><\/p>\n

Business<\/span> and Trade<\/span><\/h4>\n

In the business world, it may seem that the UK\u2019s official divorce from the EU has little to no impact as of now. This is mainly because<\/span>,<\/span> during the transition period, the UK would still abide by the rules of the EU. Despite having already <\/span>left, it<\/span>\u00a0will also remain a member of Customs Union and EU Single Market. <\/span><\/p>\n

Therefore, businesses operating in Hong Kong and Singapore can still easily sell their products to EU customers, with EU or UK<\/span>–<\/span>based investors, consumers and companies also have <\/span>the <\/span>business run its usual course. <\/span><\/p>\n

However, the main change will be that EU bodies will no longer represent the UK within <\/span>their<\/span> conduct or affairs. While everything is currently smooth sailing (politically – current pandemic excluded!), businesses in Asia<\/span>\u00a0seem to adopt a relatively positive outlook on their relations with the UK, even before their official split from the EU. <\/span><\/p>\n

Considering the UK’s more than <\/span>\u00a38 billion investment in Hong Kong<\/span> \u2013with Hong Kong being a major player for UK exports in goods and services in the Asia-Pacific Market\u2013 it is easy to assume that this is a relationship both parties want to maintain. This is made clear as the British government has spoken optimistically about post-Brexit trade and investments with Hong Kong. Particularly regarding agreements to remove economic and commercial relational barriers with Hong Kong. <\/span><\/p>\n

Therefore, we can hope to expect maintained relations within the trade sector between Hong Kong. Especially since the UK Head of British Parliamentary Committee Regarding China Relations told the <\/span>South China Morning Post<\/span> that China and Hong Kong are priorities within trade negotiations post-Brexit. <\/span><\/p>\n

As Brexit is now official, the UK is granted more autonomy and freedom to negotiate trade deals with other countries. This being one of their main priorities, especially with the EU. Considering Hong Kong and Singapore have their current Free Trade Agreements signed with Members States of the European Free Trade Association, we can hopefully expect a similar free trade deal to be struck up soon between Hong Kong and Singapore and the UK. <\/span><\/p>\n

Both Hong Kong and <\/span>the <\/span>UK are known advocates of <\/span>free-trade. So,<\/span>\u00a0it comes as no surprise that both governments have issued a joint statement and launched a Strategic Dialogue on Trade Partnership, which encourages stronger relations and collaboration between the two in 2018. <\/span><\/p>\n

In particular, this<\/span> would aim to boost teamwork within the areas of innovation, global free trade, creative industries, and the Belt and Road Initiative. Therefore, it is not hard to assume that we could expect further collaboration and partnership post-Brexit, as the UK gains more freedom.<\/span><\/p>\n

What should Hong Kong and Singapore companies with relations in the UK do?<\/span><\/h4>\n<\/div>\n<\/div>\n
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While the future post-Brexit holds many possible business opportunities, it should not be lost on potential investors that roadblocks and challenges are sure to present themselves when operating in a new political and administrative climate. <\/span><\/p>\n

For example, Intellectual Property (which will be discussed below) regulations will change after the transition period. Whereby UK trademarks must be applied for and will no longer be protected within the EU after 1 January 2021. <\/span><\/p>\n

Therefore, companies should be wary and take reasonable precautions when venturing into business with the UK post-Brexit. For example, lawyers advise:<\/span><\/p>\n