Eu Uk Trade Agreement Summary

September 26, 2022 Facebook Twitter LinkedIn Google+ Uncategorized

The EU-UK Trade Agreement Summary: What You Need to Know

On December 24, 2020, the European Union (EU) and United Kingdom (UK) finally reached a post-Brexit trade agreement after months of negotiations. The agreement, which came into effect on January 1, 2021, outlines the terms of the UK`s departure from the EU and sets the framework for future trade relations. Here is a summary of the key points of the EU-UK Trade Agreement.

Tariff-free and Quota-free Trade

The EU-UK Trade Agreement aims to create a level playing field for trade and investment between the two parties. The agreement provides for tariff-free and quota-free trade in goods, thereby avoiding the imposition of tariffs on goods traded between the UK and the EU. This means that businesses in the UK will not have to pay extra taxes when exporting goods to the EU, and vice versa.

Rules of Origin

The agreement also includes rules of origin provisions, which establish the origin of a product to determine whether it is eligible for preferential treatment. Goods traded between the UK and the EU must meet certain criteria to qualify for preferential treatment under the agreement. This is an important consideration for businesses that rely on the supply chain and input from other countries.

Fisheries

The agreement also includes provisions on fisheries, which were one of the key sticking points during negotiations. The UK will regain control of its waters and its fishing quotas, but there will be a five-and-a-half-year transition period during which EU fishing vessels will have access to UK waters. At the end of this period, the UK and EU will negotiate a new agreement on fishing arrangements.

Services

The EU-UK Trade Agreement covers trade in services, but it does not provide the same level of access as the UK had when it was a member of the EU. The UK and the EU will need to negotiate separate agreements on financial services, and there are limits on the provision of services such as transport and professional services.

Security and Law Enforcement

The agreement also includes provisions on security and law enforcement, facilitating continued cooperation in areas such as criminal justice and counter-terrorism. The UK will no longer have access to some EU databases and will not be a member of the EU`s law enforcement agencies, but there are provisions for data sharing and cooperation between the UK and the EU.

Conclusion

The EU-UK Trade Agreement is a significant milestone in the UK`s departure from the EU. The agreement provides for tariff-free and quota-free trade and establishes rules of origin to ensure that goods traded between the UK and EU meet certain criteria. The agreement also includes provisions on fisheries, services, security, and law enforcement. While it is not a perfect solution for either party, it is a starting point for future cooperation and trade.