Agreement UE-UK: What You Need to Know
The United Kingdom (UK) and the European Union (EU) have always had close economic ties, with the UK being a member of the EU for over four decades. However, after the Brexit referendum in 2016, the UK started the process of leaving the EU, which culminated in the finalization of a Withdrawal Agreement in January 2020.
One crucial aspect of this agreement is the future relationship between the UK and the EU. Negotiations took place throughout 2020, and on December 24, 2020, a comprehensive agreement was reached. This agreement addresses several key areas, including trade, transport, security, and fisheries.
Here`s what you need to know about the Agreement UE-UK.
Trade
The agreement ensures that goods traded between the UK and the EU will be free of tariffs and quotas, provided that they meet certain rules of origin requirements. This will help to maintain many of the existing supply chains and avoid disruptions to trade.
However, the agreement still introduces significant new barriers to trade, such as customs checks and documentation requirements. This will add additional costs and complexity, particularly for small and medium-sized enterprises (SMEs) that may lack the resources to deal with these new requirements.
Services
The agreement is less comprehensive when it comes to services, with many sectors (including finance) only receiving basic access to each other`s markets. This could create difficulties for UK service providers operating in the EU, and vice versa.
Transport
The agreement ensures that air, road, and rail transport between the UK and the EU can continue, with a few notable exceptions (such as cabotage rights for road hauliers). However, additional paperwork and checks will be required, which may cause delays and increase costs.
Security
The agreement includes cooperation on a range of security issues, including law enforcement, data sharing, and extradition. This will help to maintain the close security partnership that the UK and EU have enjoyed in recent years.
Fisheries
One of the most contentious issues in the negotiations was the future of fishing rights in UK waters. The agreement provides for a gradual reduction in the EU`s share of fishing quotas in UK waters, while also allowing EU vessels to continue to fish in these waters for a few more years.
Overall, the Agreement UE-UK is a significant step for both the UK and the EU, providing a framework for their future relationship. However, it is important to recognize that it still represents a significant change from the previous status quo, and businesses will need to adapt to these new realities.
