Saturday, January 16, 2021

A simple guide: 10 things to know about the Brexit deal | Economy News

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British and EU negotiators struck a broad free trade deal on Christmas Eve, meaning trade between the 450 million consumer trade bloc and the world’s sixth largest economy will continue to flow without tariffs or quotas from from January 1.

Britain hailed the deal as a clean break with the European Union that will allow London to set its own agenda, while the bloc also hailed a ‘good deal’ that will allow the 27 member states to move on. thing.

But things will be different once Britain completes its journey out of the EU, its single market and customs union, at the end of this year. There are also unfinished parts that will require more negotiation.

The complete 1250-page document is available here (PDF).

Here are examples of what will change.

Fair rules of the game:

The issue nearly derailed talks when Britain accused the EU of introducing a new demand that would give the bloc a unilateral right to impose tariffs on Britain if it was found to be move too far from the rules of fair competition.

The deal means that one or the other has the right to challenge the other through an arbitration mechanism if a regulatory divergence is considered to have caused a competitiveness problem.

It also indicates that if these mechanisms are used too often and for too long, a renegotiation of the relevant parts of the treaty may be triggered.

More checks and paperwork in merchandise trade:

Unlike today, goods moving between Britain and the EU will be subject to customs, regulatory and animal safety checks, resulting in more red tape.

Ireland, the EU country most affected by Brexit, estimated in September that import and export declarations could increase 12-fold to 20 million per year.

Free movement of people to end:

As the EU and UK have agreed to avoid visas for short stays, the current free movement of people will end.

This means that EU citizens traveling to the UK, and vice versa, will be subject to more extensive border control. The right of EU citizens to live and work in the UK – as well as the ability of UK citizens to do the same in Europe – will be limited.

Pet passports will no longer be automatically recognized across the EU-UK border.

Reduced sharing of security information:

Britain praised the deal for ensuring a range of fast and effective security capabilities, but there are significant changes in how Britain and the EU will share security, police and police data. intelligence.

The UK will no longer participate in Europol or Eurojust and lose access to the Schengen Information System, although there are ways to share passenger, fingerprint, DNA and vehicle data.

A senior member of the UK negotiating team said that the “extended” deal allowed Britain to work with Europol or Eurojust, but those involved would have to get used to a different process.

Transport borders:

UK licenses for passenger or cargo flights will no longer be sufficient to operate between EU destinations or from the EU. Britain and EU states can, however, arrange flights between themselves and will cooperate on air safety and slots.

For road transport, cabotage will be reduced, but carriers carrying loads between the EU and the UK can operate without limits and transit rights are full.

Changes in fishing quotas, limited access to water:

Full access to each other’s fishing waters ends after a transition period of 5.5 years from 2021, during which catch quotas will also be gradually shifted from the EU to the UK .

The two parties have agreed that 25 percent of the fishing rights of EU vessels in UK waters will be transferred to the UK fishing fleet during this period. After that, annual talks will take place to set the amount that EU vessels can fish in UK waters and vice versa.

The senior member of the UK negotiating team said both sides had to make compromises, but at the end of the transition Britain will have full control and access to its waters.

Financial services:

From January 1, UK-based financial services groups lose automatic access to the EU’s single market. Both sides said new market access must be negotiated outside the trade agreement under specific equivalency agreements.

The two sides will also aim to agree by March 2021 on a memorandum of understanding on regulatory cooperation in financial services.

Separate agreements for energy, climate:

Britain will no longer participate in the EU’s internal energy market and will not be part of the EU emissions trading scheme.

The UK government announced this month that it will establish a National Emissions Trading System (UK ETS) from January 1.

State aid:

On state aid, the two agreed to create a body to provide independent oversight and work within six overarching principles.

But Alexander Rose, director of legal firm DWF, said: “We know we’ll have a new UK grant control regime, but at this point … we don’t know which body will oversee this, which ones. are the rules and if the category exemptions (used for 99% of the rewards) will remain. “

Roaming charges:

EU member states have agreed to drop roaming charges for mobile connections and data within their single market, a legal requirement for mobile operators that will no longer apply to Great Britain. Brittany from the start of 2021.

If telecommunications companies introduce such charges, as is the case with Switzerland, citizens crossing between the EU and the UK will have to either turn off data roaming or face higher charges.



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