Even though the UK will not be joining in the first wave of those countries that will be setting up EMU, UK business will undoubtedly be significantly affected.

Those businesses that have not already done so need to consider the impact of EMU on their business and act accordingly.

Trading partners in member states whose currencies are being replaced by the Euro are likely to have their own policy as to the financial terms on which they will do business.

They may do so either in the new Euro currency or in the existing currency during the transitional period that will exist from January 1 1999 to January 2002.

UK businesses should ask continental trading partners to give them an indication as to which currency they will want to deal in.

Certain UK businesses may have long term purchasing of supply contracts that will overlap the period during which a joining country's currency is being phased out and the Euro becomes mandatory.

Although the introduction of the Euro will not have the affect of altering any term of any existing contract, it would be better for the purposes of a smooth transition and effective client relationships if existing contracts could be revisited and discussed between trading partners.

EMU is approaching fast and time is therefore running out to ensure an orderly transition into this new regime by UK companies.

Those businesses that apply foresight to their current trading relationships are sure to reap greater benefits.

Michael Boyd is a partner at commercial lawyers Pinsent Curtis.

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