On December 24th, 2020, the European Union and the United Kingdom reached a Brexit transition agreement that will define their relationship after the UK leaves the European Single Market and Customs Union on December 31st, 2020. The agreement, which is over 1,200 pages long, covers several areas such as trade, security, fisheries, and governance.
The Brexit transition agreement aims to create a level playing field for businesses and citizens on both sides of the Channel. It provides for zero tariffs and zero quotas on all goods that comply with the rules of origin and the standards of the importing country. This means that UK businesses will have continued access to the EU`s internal market for goods, and vice versa. However, some sectors such as financial services and transport will not benefit from the free trade provisions and will have to comply with specific regulations.
Moreover, the agreement includes provisions on fisheries, which were one of the most contentious issues during the negotiations. Under the new rules, the EU will have access to UK waters for the next five and a half years, while UK fishing communities will gradually take control of their waters. The agreement also provides for cooperation on law enforcement and security matters, such as sharing DNA, fingerprints, and criminal records.
As for governance, the Brexit transition agreement establishes a Joint Partnership Council, a forum that will oversee the implementation of the agreement and resolve disputes. The Council will also have working groups on different issues, such as trade and services, energy, and transport. In case of any breaches of the agreement, both sides will have the right to take measures such as suspension of market access or financial penalties.
Overall, the Brexit transition agreement is a landmark deal that will provide some certainty to businesses and citizens in a context of unprecedented uncertainty due to the Covid-19 pandemic. While it does not restore the frictionless trade and the free movement of people that existed before Brexit, it represents a compromise that accommodates the UK`s desire to regain control over its laws and borders and the EU`s objective to protect its single market and its member states` interests.
In conclusion, the Brexit transition agreement is not the end of the Brexit saga, as many areas such as data protection, intellectual property, and research cooperation are still subject to negotiation. However, it is a significant step forward that prevents a no-deal scenario and opens the way for a more stable and cooperative relationship between the EU and the UK in the years to come.