The EU-UK Trade Cooperation Agreement: Understanding its Full Text
Since the United Kingdom officially left the European Union on January 31, 2020, both parties have been working towards establishing a new relationship that would benefit both sides in terms of trade and cooperation. After several months of negotiations, the EU-UK Trade Cooperation Agreement was finally agreed upon on December 24, 2020.
The full text of the agreement is quite lengthy and complex, but it is essential to understand its details to comprehend the implications it has on the UK and EU`s future trade relationship. This article aims to provide an overview of the key points of the EU-UK Trade Cooperation Agreement`s full text.
The agreement`s main objective is to remove tariffs and quotas on all goods traded between the UK and the EU, ensuring that businesses can trade with each other on a level playing field. The agreement also establishes new customs procedures to ensure that goods are traded efficiently and quickly between the two sides.
One of the most significant aspects of the agreement is that it does not cover trade in services, which amounts to around 80% of the UK`s economy. Instead, the UK and EU have agreed to enter negotiations on services separately, with both sides committing to providing each other with market access in the future.
The EU-UK Trade Cooperation Agreement also contains provisions that aim to ensure fair competition between UK and EU businesses. These include commitments to maintain high standards of labor and environmental protection, as well as prohibiting state aid that unfairly benefits companies over others.
The agreement also establishes a dispute resolution mechanism, which allows either the UK or EU to raise concerns about the other side`s compliance with the agreement. An independent panel will oversee the resolution process, and if both sides are still unable to reach a solution, the agreement allows for retaliatory measures to be taken.
Overall, the EU-UK Trade Cooperation Agreement is a significant step towards establishing a new relationship between the UK and the EU. The agreement provides clarity and reassurance to businesses trading across the English Channel, and it sets the stage for future cooperation on issues like climate change and security.
In conclusion, understanding the full text of the EU-UK Trade Cooperation Agreement is crucial for anyone who wants to comprehend the UK`s current and future trade relationship with the EU. While the agreement is not perfect and does not cover all aspects of the UK`s economy, it is an important first step towards building a mutually beneficial partnership between the UK and the EU.