After months of negotiations, the European Union and the United Kingdom finally reached a trade and cooperation agreement just days before the completion of the Brexit transition period. This agreement, which took effect on January 1, 2021, outlines the future relationship between these two major economic powers. Here`s a summary of the key points of the EU-UK trade and cooperation agreement:
Goods trade:
The agreement allows for tariff-free and quota-free trade in goods between the EU and the UK. However, there are some exceptions, such as agricultural products, where quotas and tariffs will apply. Rules of origin will also be introduced to ensure that only goods made in the UK or EU will qualify for tariff-free trade.
Services trade:
The agreement doesn`t cover free movement of services between the UK and EU, but it does provide for market access for some sectors, such as aviation and road transport. There are also provisions for professionals, such as lawyers and architects, to provide services in the EU or UK without the need for work permits.
Data:
The agreement includes provisions for the transfer of personal data between the UK and EU, but this will be subject to a review by the European Commission in four years` time.
Fishing:
The agreement provides for a five-and-a-half-year transition period for EU fishing fleets to access UK waters, after which they will have to negotiate annual access. The UK will have control over its own waters and the ability to set quotas for fish caught in its waters.
Dispute resolution:
The agreement includes provisions for resolving disputes between the EU and UK, including a formal arbitration process. If either side raises concerns about the other`s compliance with the agreement, there is a mechanism for consultations, which could lead to the imposition of tariffs or other measures.
Conclusion:
Overall, the EU-UK trade and cooperation agreement provides a framework for the future relationship between these two important trading partners. While it does not cover all sectors or provide for free movement of goods and services, it does provide for tariff-free trade in most goods and includes provisions for resolving disputes. It remains to be seen how this agreement will affect the economies of the EU and UK in the long run, but for now, it provides some certainty for businesses and investors on both sides of the Channel.