Last week saw the process of Brexit move a stage forward and we are now moving to the part where we construct a free trade agreement with the EU. This is very important as it will define the way we do business with the EU for a generation.

Much of it, I suspect, will be broadly simple. All trade deals are done based on starting in a place you want to improve from: this one is being done starting from the ideal position. So, for example, when it comes to tariffs – the customs duties levied on goods from outside the EU, we are starting with zero tariffs. It is in everyone’s best interests to not charge levies of, for example, 10% on cars from the EU, nor they charging likewise.

However, one of the arguments being put forward is that of divergence from EU regulations. This is a hot topic as the concept of “Sovereignty” was a strong one during the referendum. Why, people asked, should Britain accept laws from the EU? (The technical answer is that Parliament voted to agree to this under the Lisbon Treaty.) But the laws that come through are, in the widest possible sense, all to do with trade. At one end of the scale are various rules that people will not necessarily understand to be related to trade and in the extreme wider context, they may have a point (although we, in many cases, adopt tougher interpretations because it suits us). But at the other end of the scale are the EU regulations concerning car safety standards. 60% of our car production is exported to the EU, and to continue to do so would require us to export cars of compliant standards. Indeed, a lot of the world is adopting EU standards so it would make sense to keep those standards. The US has a different set, so we must manufacture cars for the US market under a different set of standards. It makes manufacturing complex and more expensive.

This is a debate that will run and run in the New Year, but before then we have the welcome, and hopefully Brexit free Christmas holiday. Every year brings its own challenges and next years are no less challenging than this year’s. So in preparation for an exciting 2018, a very happy to Christmas and season’s greetings to everyone.