The European Union-United Kingdom Trade and Cooperation Agreement, also known as the Brexit deal, was finally agreed upon on December 24, 2020, after months of intense negotiations between the two parties. This historic agreement marks the end of the UK’s membership in the European Union and sets the framework for future trade and cooperation between the two entities.
One of the key aspects of the agreement is the establishment of a zero-tariff and zero-quota free trade area between the EU and the UK. This means that there will be no tariffs or quotas on the movement of goods between the two parties, with a few exceptions for sensitive products such as meat and dairy. This is a significant achievement, as it ensures that businesses can continue to trade with each other without any additional costs, which could have been detrimental to their competitiveness.
The agreement also includes provisions on services, which is an important sector for both the EU and the UK. The deal allows for mutual recognition of professional qualifications, which means that individuals qualified in one country can work in the other without having to go through additional training or certification. This will be particularly beneficial for industries such as finance, where there are many professionals who are qualified in one country but work in the other.
Another important aspect of the agreement is the level playing field provisions. This ensures that the UK will maintain high standards in areas such as labor rights, environmental protection, and state aid. The UK has agreed to abide by EU rules in these areas, which will ensure that there is fair competition between the EU and the UK.
The agreement also includes provisions on fisheries, which was a contentious issue during the negotiations. The deal provides for a transition period of five and a half years, during which EU fishing fleets will have access to UK waters, after which both parties will negotiate annually on fishing quotas. This compromise ensures that both EU and UK fishing industries have time to adjust to the new realities of Brexit.
Overall, the European Union-United Kingdom Trade and Cooperation Agreement is a significant achievement and represents a positive step forward for both parties. It ensures that businesses can continue to trade with each other without any additional costs, which will be beneficial for the economy. It also provides for mutual recognition of professional qualifications and maintains a level playing field to ensure fair competition. While there are still challenges ahead, this agreement provides a solid foundation for the future relationship between the EU and the UK.