Filenews 31 December 2020
The Economic and Trade Partnership Agreement between the European Union and the United Kingdom, a 1,246-page text, has been signed and sets out the framework for their relations from 1 January 2021.
Goods
The agreement guarantees duty-free exchanges, customs controls and quotas for 'all goods complying with the rules of origin'. Unprecedented for a trade deal.
The agreement prevents the breakdown of production chains and avoids the imposition of duties of 10% on the car sector, 25% on catch-based processing products and 50% on beef, dairy products, poultry, pork, lamb, cereals, sugar and a range of processed food products.
However, undertakings should deposit customs documents in both directions and the products should be subject to health checks.
Competition
The United Kingdom and the European Union undertake to respect the conditions of a level playing field. London agrees not to revise all european social, labour, environmental and climate laws and rules in force on 31 December 2020 and to adapt to their development.
The Agreement provides for the possibility of applying unilateral balancing measures, in particular by imposing duties, in the event of significant divergences which may lead to an increase in production costs and, consequently, a competitive disadvantage.
Differences
If the United Kingdom or the European Union does not comply with the terms of the agreement, a dispute settlement mechanism will be responsible for their settlement, as is the case in most trade agreements.
Because of London's opposition, the Court of Justice of the European Union will not interfere in the proceedings. A 'Joint Council' will supervise the interpretation and implementation of the terms of the Agreement
Fishing
The agreement stipulates that European fishermen retain access to British waters for a transitional period of five and a half years, until 2026. During this period, the European Union will have to gradually reduce by 25% the value of its catches in British waters, equivalent to EUR 650 million per year.
If the UK restricts EU access or catches, the Union may take compensatory measures by imposing tariffs on fishery products and other British goods, even if it terminates much of the trade agreement while keeping the rules of equal competition intact.
Transport
The agreement guarantees a lasting air, road, rail and maritime connection, but in a much less privileged way than would have been the case if the UK had remained in the single market.
The agreement ensures equal competition between transport operators so as not to jeopardise the rights of passengers, workers and transport safety'.
Programs
The United Kingdom will continue to participate in a number of European Union programmes for the period 2021-2027, such as horizon europe research and innovation programme, provided that it contributes to the European budget. However, the Uk will find itself outside the Erasmus student exchange programme.
Judicial cooperation
The agreement introduces a new framework in the field of police and judicial cooperation, 'particularly in the fight against cross-border crime and terrorism'.
The two sides will continue to share DNA data, fingerprints and passenger information and will cooperate through Europol.
Such cooperation could be suspended if the UK withdraws from the European Convention on Human Rights or abandons its implementation at national level.
Financial services
From 1 January, the United Kingdom will no longer benefit from the principles of the free movement of persons, the free availability of services and the freedom of establishment of a seat.
British institutions will lose the automatic right to offer services throughout the European Union and will have to move to the EU to continue doing business.
They will no longer participate in the 'country of origin' approach or the 'passport' scheme, where permits issued by a Member State under EU rules allow access to the entire EU single market.
Copyright
All protected geographical names that exist in the Union today will also remain protected in the United Kingdom, but Brussels has not secured guarantees for protected geographical names to be registered in the future.
Data protection
The United Kingdom will remain within the European Union's regulatory framework for data transfer for a total of six months, as long as it takes for Brussels to determine whether the data protection regime proposed by London corresponds to the European framework.
Supervision of the agreement
The agreement will be supervised by a joint committee involving both sides. The relationship between the Union and the United Kingdom can be changed every five years. A unilateral exit from the agreement must be preceded by a notification one year in time.
Source: RES-BE
