European Commission - Press release
EU-UK Trade and Cooperation Agreement: protecting European interests,
ensuring fair competition, and continued cooperation in areas of mutual
interest
Brussels, 24 December 2020
After intensive negotiations, the European Commission has reached today an agreement with the
United Kingdom on the terms of its future cooperation with the European Union.
President of the European Commission, Ursula
von der Leyen said:
“It was worth fighting for this
deal because we now have a fair and balanced agreement with the UK, which will protect our
European interests, ensure fair competition, and provide much needed predictability for our fishing
communities. Finally, we can leave Brexit behind us and look to the future. Europe is now moving
on.”
The European Commission's Chief Negotiator, Michel Barnier, said:
“We have now come to the end of
a very intensive four-year period, particularly over the past nine months, during which we negotiated
the UK's orderly withdrawal from the EU and a brand new partnership, which we have finally agreed
today. The protection of our interests has been front and centre throughout these negotiations and I
am pleased that we have managed to do so. It is now for the European Parliament and the Council to
have their say on this agreement.”
The draft Trade and Cooperation Agreement consists of three main pillars:
A Free Trade Agreement: a new economic and social partnership with the United Kingdom
The agreement covers not just trade in goods and services, but also a broad range of
other areas in the EU's interest, such as investment, competition, State aid, tax
transparency, air and road transport, energy and sustainability, fisheries, data
protection, and social security coordination.
It provides for zero tariffs and zero quotas on all goods that comply with the appropriate
rules of origin.
Both parties have committed to ensuring a robust level playing field by maintaining high
levels of protection in areas such as environmental protection, the fight against climate
change and carbon pricing, social and labour rights, tax transparency and State aid, with
effective, domestic enforcement, a binding dispute settlement mechanism and the
possibility for both parties to take remedial measures.
The EU and the UK agreed on a new framework for the joint management of fish stocks
in EU and UK waters. The UK will be able to further develop British fishing activities,
while the activities and livelihoods of European fishing communities will be safeguarded,
and natural resources preserved.
On transport, the agreement provides for continued and sustainable air, road, rail and
maritime connectivity, though market access falls below what the Single Market offers. It
includes provisions to ensure that competition between EU and UK operators takes place
on a level playing field, so that passenger rights, workers' rights and transport safety are
not undermined.
On energy, the agreement provides a new model for trading and interconnectivity, with
guarantees for open and fair competition, including on safety standards for offshore, and
production of renewable energy.
On social security coordination, the agreement aims at ensuring a number of rights of EU
citizens and UK nationals. This concerns EU citizens working in, travelling or moving to
the UK and to UK nationals working in, travelling or moving to the EU after 1st January
2021.
Finally, the agreement enables the UK's continued participation in a number of flagship
EU programmes for the period 2021-2027 (subject to a financial contribution by the UK
to the EU budget), such as Horizon Europe.
A new partnership for our citizens' security
The Trade and Cooperation Agreement establishes a new framework for law enforcement
and judicial cooperation in criminal and civil law matters. It recognises the need for
strong cooperation between national police and judicial authorities, in particular for
fighting and prosecuting cross-border crime and terrorism. It builds new operational
capabilities, taking account of the fact that the UK, as a non-EU member outside of the
Schengen area, will not have the same facilities as before. The security cooperation can
be suspended in case of violations by the UK of its commitment for continued adherence
to the European Convention of Human Rights and its domestic enforcement.
A horizontal agreement on Governance: A framework that stands the test of time
To give maximum legal certainty to businesses, consumers and citizens, a dedicated
chapter on governance provides clarity on how the agreement will be operated and
controlled. It also establishes a Joint Partnership Council, who will make sure the
Agreement is properly applied and interpreted, and in which all arising issues will be
discussed.
Binding enforcement and dispute settlement mechanisms will ensure that rights of
businesses, consumers and individuals are respected. This means that businesses in the
EU and the UK compete on a level playing field and will avoid either party using its
regulatory autonomy to grant unfair subsidies or distort competition.
Both parties can engage in cross-sector retaliation in case of violations of the agreement.
This cross-sector retaliation applies to all areas of the economic partnership.
Foreign policy, external security and defence cooperation is not covered by the Agreement as the UK
did not want to negotiate this matter. As of 1 January 2021, there will therefore be no framework in
place between the UK and the EU to develop and coordinate joint responses to foreign policy
challenges, for instance the imposition of sanctions on third country nationals or economies.
The Trade and Cooperation Agreement covers a number of areas that are in the EU's interest. It goes
well beyond traditional free trade agreements and provides a solid basis for preserving our
longstanding friendship and cooperation. It safeguards the integrity of the Single Market and the
indivisibility of the Four Freedoms (people, goods, services and capital). It reflects the fact that the
UK is leaving the EU's ecosystem of common rules, supervision and enforcement mechanisms, and
can therefore no longer enjoy the benefits of EU membership or the Single Market. Nevertheless, the
Agreement will by no means match the significant advantages that the UK enjoyed as a Member
State of the EU.
Big changes coming: getting ready 1 January 2021
Even with the new EU-UK Trade and Cooperation Agreement in place, there will be big changes on 1
January 2021.
On that date, the UK will leave the EU Single Market and Customs Union, as well as all EU policies
and international agreements. The free movement of persons, goods, services and capital between
the UK and the EU will end.
The EU and the UK will form two separate markets; two distinct regulatory and legal spaces. This will
create barriers to trade in goods and services and to cross-border mobility and exchanges that do not
exist today – in both directions.
The Withdrawal Agreement
The Withdrawal Agreement remains in place, protecting amongst other things the rights of EU
citizens and UK nationals, the EU's financial interests, and crucially, peace and stability on the island
of Ireland. The full and timely implementation of this agreement has been a key priority for the
European Union.
Thanks to intensive discussions between the EU and the UK in the Joint Committee and the various
Specialised Committees, the Withdrawal Agreement – and the Protocol on Ireland and Northern
Ireland, in particular – will be implemented on 1 January.
On 17 December, the
EU-UK Joint Committee met to endorse all formal decisions and other practical
solutions related to the implementation of the Withdrawal Agreement. As part of these mutually
agreed solutions, the UK has agreed to withdraw the contentious clauses of the UK Internal Market
Bill, and will not introduce any similar provisions in the Taxation Bill.
Next steps
The entry into application of the Trade and Cooperation Agreement is a matter of special urgency.
The United Kingdom, as a former Member State, has extensive links with the Union in a wide
range of economic and other areas. If there is no applicable framework regulating the relations
between the Union and the United Kingdom after 31 December 2020, those relations will be
significantly disrupted, to the detriment of individuals, businesses and other stakeholders.
The negotiations could only be finalised at a very late stage before the expiry of the transition
period. Such late timing should not jeopardise the European Parliament's right of democratic
scrutiny, in accordance with the Treaties.
In light of these exceptional circumstances, the Commission proposes to apply the Agreement
on a provisional basis, for a limited period of time until 28 February 2021.
The Commission will swiftly propose Council decisions on the signature and provisional application,
and on the conclusion of the Agreement.
The Council, acting by the unanimity of all 27 Member States, will then need to adopt a decision
authorising the signature of the Agreement and its provisional application as of 1 January 2021.
Once this process is concluded, the Trade and Cooperation Agreement between the EU and the UK
can be formally signed.
The European Parliament will then be asked to give its consent to the Agreement.
As a last step on the EU side, the Council must adopt the decision on the conclusion of the
Agreement.
More information
Full “Agreement in Principle”
Q&A
EU-UK Trade and Cooperation Agreement: A new relationship, with big changes - Brochure
EU-UK Trade and Cooperation Agreement: A new relationship, with big changes - Overview of
consequences and benefits
EU-UK Relations: From the UK referendum to a new Trade and Cooperation Agreement -
Infographic
EU-UK Relations: From the UK referendum to a new Trade and Cooperation Agreement -
Timeline
More information on the
UK's withdrawal from the European Union and the Withdrawal Agreement
IP/20/2531
Press contacts:
Eric MAMER (+32 2 299 40 73)
Dana SPINANT (+32 2 299 01 50)
Daniel FERRIE (+32 2 298 65 00)
General public inquiries:
Europe Direct by phone
00 800 67 89 10 11 or by
email
Related documents
A new relationship - Overview.pdf
A new relationship - Brochure.pdf
EUUK - Infographic.pdf
EUUK - Timeline.pdf
NA0620220ENN_002.pdf
Related media
Visit of Dominic Raab, British Secretary of State for Exiting the European Union, to the EC
Document Outline
