EU–UK Trade and Cooperation Agreement
Trade and cooperation agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part | |
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Type | Trade and cooperation agreement |
Context | Withdrawal of the UK from the EU on 31 January 2020 |
Drafted | 24 December 2020 |
Signed | 30 December 2020 |
Location | Brussels and London |
Ratified | 30 April 2021[1] |
Effective | 1 May 2021[2] |
Condition | Ratification by both parties (Article 783) |
Provisional application | 1 January 2021 to 30 April 2021 |
Negotiators |
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Parties |
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Languages | all official EU languages |
The EU–UK Trade and Cooperation Agreement (TCA) is a
The agreement, which governs the relationship between the EU and the UK after
In addition, two other separate treaties were negotiated, signed, and ratified in parallel around the same time by the UK and the EU/Euratom: an agreement on exchange of classified information[9] and another on cooperation in the field of nuclear energy.[10]
Background
Part of a series of articles on | |
Brexit | |
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Withdrawal of the United Kingdom from the European Union Glossary of terms | |
Jul 2018 | |
Withdrawal agreement plan presented | July 2018 |
Withdrawal agreement released | Nov 2018 |
Scottish Continuity Bill blocked | Dec 2018 |
Meaningful votes | Jan–Mar 2019 |
Brexit delayed until 12 April | Mar 2019 |
Cooper–Letwin Act passed | Apr 2019 |
Brexit delayed until 31 October | Apr 2019 |
European Parliament election | May 2019 |
Theresa May resigns as PM | Jul 2019 |
Boris Johnson becomes PM | Jul 2019 |
Prorogation and annulment | Aug–Sep 2019 |
Benn Act passed | Sep 2019 |
Withdrawal agreement revised | Oct 2019 |
Brexit delayed until 31 January | Oct 2019 |
2019 general election | Dec 2019 |
Agreement Act passed | Jan 2020 |
UK leaves the European Union | Jan 2020 |
Implementation period begins | Jan 2020 |
UK–EU trade deal agreed | Dec 2020 |
Future Relationship Act passed | Dec 2020 |
Scottish Continuity Act passed | Dec 2020 |
Implementation period ends | Dec 2020 |
New EU–UK relationship begins | Jan 2021 |
UK–EU trade deal ratified | Apr 2021 |
Windsor Framework released | Feb 2023 |
Windsor framework adopted | Mar 2023 |
The UK became a member of the
After the UK decided in a 2016 referendum to leave the EU ("Brexit"), it did so on 31 January 2020.[12] Until 31 December 2020, a transition period applied, in which the UK was still considered for most matters to be part of the EU. After the first negotiations between the UK and the EU led to the Brexit withdrawal agreement that implemented the UK's withdrawal,[13] negotiations commenced for an agreement to govern trade and other relations between the EU and the UK after the end of the transition period.
Negotiations
The UK government led by
The trade agreement, negotiated under increasing time pressure due to the end of the transition period on 31 December 2020, had to address all of these issues.
Signature, ratification and entry into force
Signature
After approval by the Council of the European Union on 29 December,[3] the President of the European Council Charles Michel and the President of the European Commission Ursula von der Leyen signed the TCA on 30 December 2020 on behalf of the EU.[18] The agreement was then flown to London and signed for the UK by the Prime Minister, Boris Johnson.[18]
Ratification
The internal procedures of the UK and EU/Euratom had to be followed for ratification after signature. For the EU, this meant a decision by the
For the UK, ratification is a royal prerogative, exercised in effect by the Government.[citation needed] For the agreement to have effect in UK domestic law and to enable the government to enter into the agreement, the enactment of the European Union (Future Relationship) Bill was required.[23] The bill was introduced in Parliament on 30 December 2020 and provides for implementation of the TCA.[24] The same day, the bill passed the House of Commons with 521 votes to 73, and was approved by the House of Lords. It became the European Union (Future Relationship) Act 2020 when it received royal assent on 31 December 2020.[25]
On 4 March 2021, the European Parliament postponed its consent decision, which had been planned for 25 March. The EU accused the UK of proposing for a second time to break international law, after UK ministers announced the unilateral extension of the grace period on certain checks on trade from Great Britain to Northern Ireland.[26] On 27 April, the European Parliament gave its consent to the agreement after a plenary vote (660 in favour, 5 against, 32 abstentions).[27] The Council of the European Union approved the agreement by a decision on 29 April using a written procedure.[2]
Versions
Agreement on the draft text of the TCA was only reached in late December 2020, while the parties planned provisional application on 1 January 2021. The parties therefore signed the draft text, of which the articles had not been continuously numbered and which was subject to legal revision before it could enter into force. The draft agreement was replaced by the definitive version of the agreement through an exchange of notes on 21 April 2021, and this version applies retroactively (ab initio) from 1 January 2021.[28]
Provisional application and entry into force
The agreement was
Territorial scope
The agreement applies to the territory of the UK and to the EU. It does not apply to
Contents
The 1,246-page agreement (including annexes) covers its general objectives and framework with detailed provisions for fisheries, social security, trade, transport, visas; and cooperation in judicial, law enforcement, and security matters. Other provisions include continued participation in community programmes and mechanisms for dispute resolution.[32]
According to summaries of the agreement published by the European Commission and the UK government, the agreement provides for the following or has the following effects on the EU–UK relationship compared to when the UK was an EU member state. For Northern Ireland other arrangements may be in place through the Ireland/Northern Ireland Protocol.
Trade in goods
Trade in goods between the EU and UK shall not be subject to any tariffs or quotas. Traders can self-certify compliance with agreed rules of origin. However, as a result of the UK leaving the EU customs area, customs formalities are required between the two parties, and VAT and certain other duties apply upon import.[37] There are provisions intended to limit technical barriers to trade (TBT), building on the WTO TBT Agreement.[38]
Trade in services
Building on WTO rules,[38] each party is to treat service providers of the other party no less favourably than its own.[37] There are rules to facilitate the cross-border provision of services in certain fields, such as digital services (including as regards data protection rules), public procurement (extending the coverage of the WTO GPA somewhat[38]), business trips and secondments of highly qualified employees.[37] But there is no longer general access to each other's services markets;[37] for example, financial services providers no longer have access to customers via "passporting".[39] Professional qualifications are no longer automatically mutually recognized.[37]
Energy, public policy and other aspects of trade
With respect to energy, there is to be regulatory and technical cooperation,
While both parties remain free to shape their public policy in the fields of subsidies, labour and social policy, or climate and environment policy, the agreement provides for "level playing field" principles and mechanisms that aim to prevent a distortion of trade as a result of measures in these fields. In particular, each party may take countermeasures (subject to arbitration) against damaging measures by the other party.[38]
Certain existing
Movement of persons
There is no free movement of persons between the EU and the UK. Visitors planning stays of more than 90 days in any 180-day period need a visa;[37] those planning any work other than routine business meetings and conferences need an appropriate visa.[43] There is coordination of some social security benefits.[37]
Aviation and road transport
In
Likewise, in road transport, mutual market access for passenger transport is limited to point-to-point crossborder transports, whereas for the transport of goods up to two extra movements (cabotage) in the other party's territory are permitted.[37]
Fisheries
The UK leaves the EU Common Fisheries Policy.[38][37] During a transitional period of 5+1⁄2 years, EU fishing quotas in UK waters will gradually be reduced to 75% of their pre-Brexit extent.[14][37] The shares of fish the parties are allowed to catch in each other's waters will then be negotiated annually.[45]
Cooperation and UK participation in EU programmes
In the field of security, the UK no longer participates in the EU security agencies and no longer has access to the Schengen Information System SIS II database. But UK cooperation continues with Europol and Eurojust, and there are mechanisms for the exchange of certain security-relevant data, such as passenger name records, Prüm Convention data (DNA, fingerprints, vehicle registrations) and criminal records.[37]
The UK no longer participates in EU development funding programmes. It continues to participate in five technical EU programmes:
- Horizon Europe
- Euratom research and training
- ITER
- Copernicus
- Satellite surveillance (partly).[37]
One of the programmes that the UK does not participate in, is the Erasmus student exchange programme.[46]
Institutional provisions and dispute settlement
The agreement establishes a
When disagreements between the parties cannot be resolved through consultation, either party may submit the dispute to an independent arbitration panel. If that panel finds that one party has breached its obligations, the other party may suspend (part of) its own obligations under the agreement. The agreement excludes any role of UK or EU courts, including the European Court of Justice, in dispute settlement between the EU and the UK.[38]
Reactions
In the EU
The President of the European Commission, Ursula von der Leyen, called the TCA "a fair and balanced agreement" that would allow Europe "to leave Brexit behind us and look to the future."[47] The President of the European Council, Charles Michel, said that the TCA "fully protects the fundamental interests of the European Union and creates stability and predictability for citizens and companies."[18] The former Taoiseach of Ireland, John Bruton, believes that the agreement has given the UK more sovereignty over the island of Britain, but this gain comes at the cost of losing a considerable weight of the UK's sovereignty over Northern Ireland.[48]
In the UK
Prime Minister Boris Johnson said that the TCA would allow the UK "to take back control of our laws, borders, money, trade and fisheries" and would change the basis of the EU–UK relationship "from EU law to free trade and friendly cooperation".[38] The Leader of the Opposition, Sir Keir Starmer, said that his Labour Party would support the TCA because the alternative would be a "no deal" Brexit, but that his party would seek additional labour and environmental protections in Parliament. Nonetheless, many in his party opposed the agreement.[49] The Scottish National Party opposed the TCA because of the economic damage it said leaving the single market would inflict on Scotland.[50] All other opposition parties opposed the TCA.[51]
Among pro-Brexit interest groups, the
A YouGov survey of 29–30 December 2020 reported that 57% of respondents wanted the UK Parliament to accept the TCA and 9% to oppose it, with Conservative (78%) and Leave supporters (69%) more in favour than others.[60] 17% of respondents considered the TCA to be a good deal, 21% a bad one, 31% neither, and 31% were unsure.[60]
See also
- 2016 United Kingdom European Union membership referendum
- EU–UK Partnership Council
- European Union (Withdrawal Agreement) Act 2020
- European Union (Future Relationship) Act 2020
- Free trade agreements of the European Union
- Free trade agreements of the United Kingdom
- Post-Brexit United Kingdom relations with the European Union
- United Kingdom–European Union relations
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External links
- Trade and Cooperation Agreement:
- Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the European Atomic Energy Community for Cooperation on the Safe and Peaceful Uses of Nuclear Energy in the Official Journal of the European Union, L 150, 30 April 2021 – UK/EAEC: Agreement for Cooperation on the Safe and Peaceful uses of Nuclear Energy [TS No.10/2021] – Draft: Nuclear Cooperation Agreement
- UK/EU: Agreement concerning Security Procedures for Exchanging and Protecting Classified Information [TS No.9/2021] – Draft: Agreement on Security Procedures for Exchanging and Protecting Classified Information.
- European Commission publication: EU–UK Trade and Cooperation Agreement – Overview of consequences and benefits (24 December 2020)
- European Commission publication: EU–UK Trade and Cooperation Agreement – Infographic (24 December 2020)
- United Kingdom government: Summary Explainer of the TCA (24 December 2020)
- European Union initial draft: EU – UK CFTA (Draft) (20 March 2020)
- United Kingdom initial draft: UK – EU CFTA (Draft) (undated, public release 19 May 2020)
- UK Draft European Union (Future Relationship) Bill 29 December 2020