On December 24, 2020, the UK and the European Union (EU) finally reached a trade and cooperation agreement, just days before the end of the Brexit transition period. The European Commission, the executive branch of the EU, played a key role in negotiating and endorsing the deal.
The EU-UK Trade and Cooperation Agreement (TCA) outlines the terms for trade, security, and other areas of cooperation between the UK and the EU. The agreement is designed to ensure that both parties can continue to do business with each other without tariffs or quotas, while also maintaining certain standards and regulatory alignment in areas such as product safety and environmental protection.
One of the key provisions of the TCA is the establishment of a level playing field for competition. This means that both the UK and the EU are committed to maintaining high standards in areas such as labor rights, environmental protection, and state aid. The agreement also includes a mechanism for resolving disputes if either party believes that the other is not upholding these standards.
Another important aspect of the TCA is the protection of citizens` rights. The agreement guarantees the rights of EU citizens living in the UK and UK citizens living in the EU to continue to work, reside, and receive social security benefits in their respective countries. The agreement also includes provisions on education, healthcare, and social security cooperation.
The TCA also covers trade in goods and services, as well as investment. The agreement eliminates tariffs and quotas on all goods traded between the UK and the EU, while also providing for cooperation in areas such as customs and regulatory cooperation. In the area of services, the TCA includes provisions on market access, recognition of professional qualifications, and the establishment of a framework for future negotiations.
The European Commission played a significant role in negotiating the TCA, which was endorsed by the European Council (the heads of state and government of the EU member states) and the European Parliament. The Commission continues to monitor the implementation of the agreement and has established a mechanism for resolving disputes between the UK and the EU.
Overall, the EU-UK Trade and Cooperation Agreement represents a significant milestone in the UK`s relationship with the EU. While there will undoubtedly be challenges ahead as both sides adjust to the new arrangements, the TCA provides a framework for continued cooperation and a basis for future negotiations on issues such as data protection, cooperation on security and defense, and research and innovation.