Will transition be extended?
No. As part of the Withdrawal Agreement, the UK and EU had the possibility to extend the transition period for up to two years to the end of 2022. However, such a decision had to be made by the end of June 2020. Neither the UK nor the EU requested such an extension by that date, although the EU had indicated it would have agreed to any UK request to do so. As a result, the transition period ends at 11pm UK time on 31 December 2020. The two sides may agree some sort of implementation period for any agreement reached beyond then, but this will not replicate the terms of the transition period, in which the UK has remained in the EU’s single market and customs union.