EU-UK Trade and Cooperation agreement

SUMMARY OF:

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

Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information

Decision (EU) 2020/2252 on the signing, on behalf of the Union, of the EU-UK Trade and Cooperation Agreement and of the Agreement concerning security procedures for exchanging and protecting classified information

Decision (Euratom) 2020/2253 approving the conclusion of the 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 and of the Trade and Cooperation Agreement

Declarations referred to in the Council Decision on the conclusion, on behalf of the Union, of the Trade and Cooperation Agreement and of the Agreement concerning security procedures for exchanging and protecting classified information

Decision (EU) 2021/689 on the conclusion, on behalf of the Union, of the 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, and of the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information

Notice concerning the entry into force of the EU-UK Trade and Cooperation Agreement and of the Agreement concerning security procedures for exchanging and protecting classified information

WHAT IS THE AIM OF THE DECISIONS, THE AGREEMENTS AND THE DECLARATIONS?

The decisions cover the signing and application of the free trade agreement between the United Kingdom and the EU and the EU Member States.
The agreement is designed to go further than a traditional free trade agreement and provide a solid basis to preserve friendship and cooperation in the future. It reflects the fact that the UK is leaving the EU’s system of common rules, supervision and enforcement mechanisms, and will no longer enjoy the benefits of the EU’s single market.
The declarations set out political decisions agreed between the 2 parties on a number of specific issues and policy areas.

KEY POINTS

The agreement is divided into 7 parts followed by 3 protocols and more than 600 pages of annexes.

Part 1: Common and institutional rules

This part lays out the aims of the agreement, rules for supplementary agreements between the parties and sets out the institutional structure, including the Partnership Council committees and working groups designed to ensure the proper functioning of the agreement.

Part 2: Trade, transport, fisheries and other arrangements

This part is subdivided into several headings:

1.Trade — this heading covers a number of areas including:

trade in goods — including an agreement for zero tariffs or quotas on goods traded, mutual recognition of trusted traders programmes, and rules of origin;
services and investments — includes an agreement for equal treatment for EU service suppliers and investors in the UK and vice versa;
digital trade — includes the removal of unjustified barriers to digital trade, including prohibition of data localisation requirements, while respecting data protection rules;
energy — includes guarantees on security of energy supply, offshore energy cooperation in the North Sea, enforceable commitments towards the Paris Agreement and non-regression on climate change and carbon pricing;
a level playing field for open and fair competition and sustainable development.

2. Aviation — the agreement includes:

unlimited point-to-point traffic between EU and UK airports;
cooperation on aviation safety, security and air traffic management;
rules on ground-handling and slots (non-discrimination and access), and passenger rights.

3. Road transport — the agreement includes:

unlimited point-to-point access for hauliers carrying loads between the EU and the UK and full transit rights across each other’s territories;
rules on working conditions, road safety, fair competition, and a level playing field regarding the environment, social issues and competition.

4. Social security coordination and visas for short term visits — the agreement includes:

coordination of some social security benefits (old-age and survivors’ pensions, pre-retirement, healthcare, maternity and paternity, accidents at work) making it easier to work abroad and not lose rights;
non-discrimination clause ensures equal treatment of EU citizens for short-term visas.

5. Fisheries — the agreement includes:

new arrangements ensure sustainable management of shared fish stocks in EU and UK waters, respecting both parties’ rights and obligations as independent coastal states;
a transition period of five and a half years during which reciprocal access rights to fish in each other’s waters remain unchanged, with a gradual transfer of EU quotas to the UK.

Part 3: Law enforcement and judicial cooperation in criminal matters

The agreement ensures that the parties will work together in a number of ways including:

continued cooperation between UK, Europol and Eurojust;
arrangements for close cooperation between national police and judicial authorities of the UK and EU Member States, including on surrender;
mechanisms for swift exchanges of Passenger Name Record (PNR) data, of DNA, fingerprints and vehicle registration data (Prüm), and of criminal record information;
cooperation on money-laundering and terrorist financing.

Part 4: Thematic cooperation

The agreement ensures cooperation on certain other issues including:

cross-border health security threats;
sharing classified information and best practice in the field of cyber security, including the opportunity for the UK to take part in the EU Agency for Cyber Security (ENISA).

Part 5: Participation in EU programmes, sound financial management and financial provisions

The UK will take part in 5 EU programmes open to non-EU country participation (subject to its financial contribution):

Horizon Europe (research and innovation);
Euratom Research and Training programme;
ITER (fusion test facility);
Copernicus (Earth monitoring system);
Access to EU satellite surveillance & tracking (SST) services.

Part 6: Dispute settlement and horizontal rules

If a solution to a disagreement cannot be found between the parties, an independent arbitration tribunal can be set up to settle the matter through a binding ruling. This dispute settlement mechanism covers most areas of the agreement, including the level playing field and fisheries.
The mechanism is accompanied by enforcement and safeguard mechanisms including the possibility to suspend market access commitments, e.g. by reintroducing tariffs and/or quotas in the affected area.
Both parties will also be able to cross-retaliate* if the other does not comply with a ruling of an independent arbitration tribunal.
Any substantial breach of obligations deemed ‘essential elements’ (fighting climate change, respecting democratic values and fundamental rights, or non-proliferation) can trigger the suspension or termination of all or part of the entire agreement.

Part 7: Final provisions

The agreement does not apply to Gibraltar nor to British overseas territories.
The agreement and any supplementary agreements will be reviewed every 5 years.

Annexes and protocols

There are numerous annexes to the agreement covering issues such as:

rules of procedure of the Partnership Council and committees;
rules of origin;
motor vehicles, equipment and parts;
medical products;
rules for authorised economic operators;
guidelines for the recognition of professional qualifications.

The are 3 protocols attached to the agreement:

Protocol on administrative cooperation and combating fraud in the field of value added tax and for mutual assistance for the recovery of claims related to tax and duties — this protocol sets out the rules and procedures for cooperation in this field.
Protocol on mutual administrative assistance in customs matters — this protocol is designed to enable the two parties to assist each other in ensuring the correct application of customs legislation, in particular by preventing, investigating and combating operations in breach of that legislation.
Protocol on social security coordination — this protocol sets out the rules for coordination on:
- sickness benefits;
- maternity and paternity benefits;
- invalidity benefits;
- old-age benefits.

Declarations

The declarations cover a wide range of issues including:

financial service regulatory cooperation;
countering harmful tax regimes;
monetary policy and subsidy control;
road hauliers;
asylum and returns;
various aspects of law enforcement and judicial cooperation on criminal matters;
exchange and protection of classified information;
UK participation in EU programmes and access to programme services;
a draft protocol on the programmes and activities in which the UK will participate.

FROM WHEN DO THE DECISIONS AND AGREEMENT APPLY?

Decisions (EU) 2020/2252 and (Euratom) 2020/2253 have applied since 29 December 2020.
Following the consent of the European Parliament on 27 April 2021 and the Council decision on 29 April 2021, the EU-UK Trade and Cooperation Agreement and the Agreement on security of information entered into force on 1 May 2021.

BACKGROUND

The Trade and Cooperation Agreement follows on from the Withdrawal Agreement agreed between the UK and the EU which entered into force on 1 February 2020. The Withdrawal Agreement covered issues such as:

citizens’ rights — both of EU citizens living in the UK and vice versa;
separation issues — steps to ensure an orderly withdrawal of the UK;
a transition period from 1 February to 31 December 2020 — to enable a Trade and Cooperation Agreement to be negotiated, and during which the UK was treated in most respects as a Member State;
the financial settlement — ensuring that the UK honoured its financial obligations as a Member State.

KEY TERMS

Cross-retaliation: retaliation by means such as tariffs, in one sector of trade, such as agriculture, to counter unfair actions or violations of agreements affecting trade in another sector.

MAIN DOCUMENTS

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 (OJ L 149, 30.4.2021, pp. 10-2539)

Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information (OJ L 149, 30.4.2021, pp. 2540-2548)

Council Decision (EU) 2020/2252 of 29 December 2020 on the signing, on behalf of the Union, and on provisional application of the 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, and of the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information (OJ L 444, 31.12.2020, pp. 2-10)

Council Decision (Euratom) 2020/2253 of 29 December 2020 approving the conclusion, by the European Commission, of the 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 and the conclusion, by the European Commission, on behalf of the European Atomic Energy Community, of the 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 (OJ L 444, 31.12.2020, pp. 11-13)

Council Decision (EU) 2021/689 of 29 April 2021 on the conclusion, on behalf of the Union, of the 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, and of the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information (OJ L 149, 30.4.2021, pp. 2-9)

Notice concerning the entry into force of the 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, and of the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information (OJ L 149, 30.4.2021, p. 2560)