According to summaries of the agreement published by the European Commission and the UK government, the deal foresees or has the following impact on EU-UK relations compared to when the UK was an EU member state. For Northern Ireland, the Ireland/Northern Ireland Protocol may provide for different arrangements. The EU-UK Trade and Cooperation Agreement (FTA) is a free trade agreement between the European Union (EU), the European Atomic Energy Community (Euratom) and the United Kingdom (UK) signed on 30 December 2020. It will be provisionally applied from 1 January 2021, the date of the end of the Brexit transition period[1],[2], and extended until 30 April 2021. [3] Protecting the interests of the European Union, ensuring fair competition and continuing cooperation in areas of mutual interest The Agreement establishes a Partnership Council composed of representatives of the EU and the United Kingdom. By mutual agreement, it is empowered to administer the agreement, settle disputes through negotiation and amend certain parts of the agreement if necessary. [30] The Partnership Council will also play this role by supplementing the EU-UK agreements, unless otherwise agreed (Articles COMPROV 2 and Inst 1.2)[24] “The evidence uncovered by our analysis on the impact of trade in services in the UK reflects some of the worrying costs of Brexit to the UK economy”. said Guillermo Larbalestier. International Trade Research Assistant at UKTPO. “The UK`s trade with the EU has declined so much since the implementation of the ACC that it has largely affected the UK`s economic recovery from the pandemic.

Although both sides remain free to develop their public policies in the areas of subsidies, social and labour policy or climate and environmental policy, the agreement provides principles and mechanisms for a “level playing field” to prevent trade distortions resulting from measures in these areas. In particular, either party may (subject to arbitration) take countermeasures against injurious measures taken by the other party. [30] Binding enforcement and dispute resolution mechanisms will ensure that the rights of businesses, consumers and individuals are respected. This means that eu and UK companies compete fairly and prevent either party from using its regulatory autonomy to provide unfair subsidies or distort competition. The agreement provides for the possibility of adopting compensatory, compensatory and protective measures. The EU-UK Trade and Cooperation Agreement between the EU and the UK includes preferential arrangements in areas such as trade in goods and services, digital trade, intellectual property, public procurement, aviation and road transport, energy, fisheries, system security coordination, law enforcement and judicial cooperation in criminal matters, thematic cooperation and participation in the Union Programmes. It is based on rules that ensure a level playing field and respect for fundamental rights. While it cannot compete with the level of economic integration that existed at the time of the UK`s EU member states, the Trade and Cooperation Agreement goes beyond traditional free trade agreements and provides a solid basis for maintaining our long-standing friendship and cooperation. The provisions of the ACC on subsidies do not alter the State aid provisions of the Protocol on the Withdrawal Agreement concerning Ireland and Northern Ireland. This means that EU state aid rules apply to subsidies that affect trade in goods between Northern Ireland and the EU.

“The immediate impact on UK trade for businesses and consumers has been acute and, in many cases, severe,” says Michael Gasiorek, director of the UKTPO and professor of economics at the University of Sussex`s Business School. “In the longer term, this will have an impact on employment and investment in the UK, and the challenges will be more difficult for SMEs to overcome.” The main provisions on a level playing field are set out in Part Two, Title XI, of the CCA. The EU and the UK recognise that, in order to avoid distortions of “trade or investment” between the parties, conditions are necessary to ensure a level playing field. The ATT states that while the UK and the EU are committed to maintaining and improving their respective high standards, they reaffirm their right to regulation and recognise that the purpose of the commitments is not to harmonise these standards. The agreement applies to the territory of the United Kingdom and the EU. It does not apply to Gibraltar, which was also part of the EU but for which separate negotiations are underway between the UK, Spain and the EU. [25] The Agreement applies to the Isle of Man, the Bailiwick of Guernsey and the Bailiwick of Jersey (which have given their consent[26][27]) with respect to trade in goods and fisheries. [28] As regards Northern Ireland, the rules on trade in goods do not apply, as these provisions (as well as the provisions on the application of EU law in this area and the intervention of the Court of Justice of the European Union)[5] are governed by a protocol to the Brexit Withdrawal Agreement.

[28] However, it will take some time for the long-term impact on trade to become clear. Among the pro-Brexit interest groups, Eurosceptic Conservative MPs from the European Research Group[45][46] and Brexit Party leader Nigel Farage[47][48], supported the ATT, but the Bow Group wrote that it would not adequately restore the UK`s sovereignty. [49] The UK fishing industry was disappointed that the agreement did not further restrict eu access to UK waters. [50] [51] [52] The biggest differences of opinion have been on subsidies, where the EU has suggested that the UK should comply with EU state aid rules if they change over time. The United Kingdom has proposed basing its commitments on World Trade Organization anti-subsidy rules with weaker enforcement mechanisms. The ACC has resulted in even more red tape, additional costs and less trade between the two sides since the UK left the EU. Other provisions allow for a review of the CCA`s Trade Section. This will be done in the event of an ongoing dispute, including over the application of the relevant commitments on an equal footing. This mechanism opens up the possibility of suspending the entire commercial part of the agreement.

Brexit tensions remain, including a French threat of “retaliation” against the UK due to new catch limits. Trade with Northern Ireland is also a sensitive issue. The Trade and Cooperation Agreement and other agreements listed below are provided for information purposes only. No rights may be derived from it until the application is submitted. The numbering of the articles is provisional. The most innovative aspect of dispute settlement in the agreement is a mechanism to restore the balance towards a level playing field. If there are significant differences between the UK and the EU in subsidy policies, social and labour policies, or climate and environmental policies, and this has a significant impact on trade or investment, both parties have the right to take countermeasures, subject to arbitration. Simply put, if one party raises its standards and the other does not, the former can take countermeasures. These balancing measures could include the temporary suspension of parts of the agreement or tariffs, but are not defined beyond that. Given the importance of the EU as a trade objective, these increased costs and their complexity are detrimental to many export sectors, according to the UKTPO. Among the most affected sectors, plagued by sustained and sustained losses, are footwear and hairdressing, with exports down 77.2 percent, textiles and apparel down 60.2 percent, and crop products down 43.5 percent. The provisions on a level playing field in trade agreements aim to ensure that competition is open and fair and that the businesses of one trading partner do not gain a competitive advantage or reduce the competitors of another.

The CCA contains the most comprehensive provisions ever adopted in a free trade agreement. In merchandise trade, the UKTPO calculates that £32.5 billion of potential imports into the UK and £11 billion. The pound sterling was lost in exports to the EU, while the Brexit effect was felt even more strongly in the services sector, leading to a 12% drop in exports and a 37% drop in imports. On 4 March 2021, the European Parliament postponed its ratification decision scheduled for 25 March. The EU has accused the UK of proposing a second time that it is in breach of international law after British ministers announced the unilateral extension of the grace period for some trade controls from the UK to Northern Ireland. [20] Prime Minister Boris Johnson said the ATT would allow the UK to “regain control of our laws, borders, money, trade and fisheries” and change the basis of EU-UK relations “from EU law to free trade and friendly cooperation”. [41] Opposition leader Sir Keir Starmer said his Labour Party would support the ATT because the alternative would be a no-deal Brexit, but that his party would seek to strengthen labour and environmental protection in parliament. Nevertheless, many members of his party rejected the agreement. [42] The Scottish National Party rejected the ATT because of the economic damage that leaving the single market would cause Scotland.

[43] All other opposition parties rejected the ATT. [44] After months of reckless maneuvers and political deadlock, the trade agreement was signed on December 31 last year with provisions based on World Trade Organization (WTO) principles, facilitating trade and addressing non-tariff barriers such as restrictions on import and export licensing. .