If no agreement is reached by 31 December, charges will be introduced on many things the UK buys and sells, which could push up prices.
What is a free trade deal?
A free trade deal aims to encourage trade - usually in goods but sometimes in services - by making it cheaper. This is often achieved by reducing or eliminating tariffs - taxes or charges by governments for trading across borders.
Trade agreements also aim to remove quotas - limits on the amount of goods which can be traded.
Trade can also be made simpler if countries have the same rules, such as the colour of wires in plugs. The closer the rules are, the less likely that goods need to be checked.
Why have tariffs and quotas at all?
While free trade agreements aim to boost trade, too many cheap imports could threaten a country's manufacturers. This could affect jobs.
For that reason a country might choose to put tariffs on car imports, for example, in order to protect local car makers.
What about a UK-EU trade deal?
The UK has now left the EU, but its trading relationship remains the same until the end of the year. That's because it's in an 11-month transition - designed to give both sides some time to negotiate a new trade deal.
The UK and the EU are negotiating a trade agreement to start on 1 January 2021.
Any trade agreement will aim to eliminate tariffs and reduce other trade barriers coming into force.
What is a 'Canada-style' trade deal?
What is the transition period?
How easy is agreeing a UK-EU trade deal?
Despite UK Prime Minister Boris Johnson's insistence that a deal be done by 15 October, an agreement has not been reached.
Both sides say there are still significant differences.
Right now, the UK and the EU share the same rules in areas like workers' rights, competition and environmental policy. These are known as level playing field rules.
The EU insists the UK must stick pretty closely to these rules - so UK businesses don't gain an advantage. But the UK government says it wants the freedom to move away.
Access to fishing waters has also proved to be a major sticking point.
Even if a trade deal is agreed, it will not eliminate all new checks, because the EU requires certain goods (such as food) from non-EU countries to be checked. So businesses need to prepare.
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