THE UK left the European Union on January 31 2020, but nothing really changed due to the transition period. That comes to an end on December 31, but no deal has yet been reached. 

A deal between the UK and EU is fundamental in setting out how we will work and live together.

While the UK was part of the EU, businesses did not pay taxes on goods crossing borders. This has remained the case for the past 11 months but if there is no deal the cost of goods could increase, as businesses will have to pay these taxes. 

There must also be agreements on the likes of airline safety, food standards and medicine but there are some main sticking points in the negotiations have prevented progress. 

Boris Johnson and European Commission president Ursula von der Leyen are trying to establish last-minute deals on fishing, a level playing field for businesses and the role of European Court of Justice.

The EU wants to continue to maximise access to UK waters for its fishing fleets after December 31.

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The British argue the UK is now an independent coastal state and should be able to prioritise its own boats.

However, most fish caught by UK fishermen are sold in Europe and Britain needs to maintain access to EU markets.

The so-called “level playing field” rules are intended to ensure businesses on one side do not gain an unfair advantage over those on the other side.

In return for continuing access to the single market, the EU is seeking a high degree of alignment by the UK with its standards on workers rights, the environment and particularly state aid for businesses.

The British deny they want to undercut EU measures, but say the point of leaving is for the UK to be able to set its own standards.

The two sides are still at odds over the mechanisms for enforcing any agreement and resolving disputes.

The British have been adamant that the UK is an independent sovereign state and cannot accept the jurisdiction of the European Court of Justice.

The deadline for a deal of October 15 has been missed, with the end of the transition period just weeks away. 

If no deal is agreed, prices could shoot up in shops and there could be delays on lorries transporting goods from the US due to additional border checks. 

Though international travel is advised against due to the covid pandemic, travellers  heading overseas will find themselves in the 'non EU' queue at passport control.

Other travel rules will also be changing. You must have health insurance and the right driving documents. 

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For those heading overseas with the intention of living, working or retiring will also not be automatically allowed to.

Pet owners planning to take their animals with them on holiday to Europe will face new restrictions from January 1.

Environment Secretary George Eustice said owners will not be able to use their EU pet passports once the current Brexit transition period finishes at the end of the year.

As part of the EU, the UK automatically had trade deals with 70 countries. Since its departure, it has negotiated deals with 50 countries.