The UK-EU Trade and Co-operation Agreement: What You Need to Know
The UK-EU Trade and Co-operation Agreement (TCA) was signed on December 24th, 2020, providing a framework for post-Brexit relationships between the United Kingdom and the European Union. The agreement covers a range of issues, from trade and investment to security and law enforcement. In this article, we’ll break down the key aspects of the TCA and what they mean for businesses and individuals on both sides of the English Channel.
Trade and Investment
The TCA provides for tariff-free and quota-free trade in goods between the UK and the EU, subject to certain rules of origin requirements. This means that goods originating in the UK or the EU can be traded between the two without additional tariffs or quotas being imposed. However, the agreement doesn’t cover all goods – for example, it doesn`t cover financial services or data flows.
In addition to the trade in goods, the TCA also includes provisions for trade in services and investment. However, the level of market access for UK service providers in the EU will be dependent on a variety of factors, including whether the UK maintains regulatory alignment with the EU.
Transport and Energy
The TCA outlines rules for the transport of goods and passengers between the UK and the EU, including provisions for transport by road, air, and sea. It also covers energy, with provisions on electricity and gas interconnectors. However, it doesn’t cover the UK’s membership in the EU’s internal energy market.
Law Enforcement and Security
The TCA includes provisions on law enforcement and security, which are designed to facilitate cooperation between the UK and the EU in the fight against crime and terrorism. These provisions cover a range of issues, from the exchange of information and intelligence to cooperation on extradition and mutual legal assistance.
Fisheries
The issue of fisheries was one of the most contentious aspects of the Brexit negotiations, and the TCA outlines a new framework for the management of fish stocks in UK and EU waters. Under the agreement, the UK will have increased control over its waters, with gradual changes to fishing quotas over a five-and-a-half-year period.
Conclusion
The UK-EU Trade and Co-operation Agreement is a complex document, covering a wide range of issues and providing a framework for post-Brexit relations between the two entities. While it provides for tariff-free and quota-free trade in goods, it doesn’t cover all aspects of the UK-EU relationship, including financial services and data flows. Businesses and individuals on both sides of the English Channel will need to be aware of the provisions of the TCA and how they will impact their operations.