As the deadline for Brexit loomed large, the UK government and its European Union (EU) counterparts spent months negotiating a withdrawal agreement. This agreement finally came to fruition in late 2020, but what does it actually entail?
The current Brexit agreement, formally known as the Trade and Cooperation Agreement (TCA), sets out the terms of the UK`s departure from the EU. It covers a range of issues, including trade, security, and data protection.
One of the most significant aspects of the TCA is the establishment of a free trade agreement (FTA) between the UK and EU. This means that goods can be traded between the two entities without tariffs or quotas, which should help to minimise disruption to businesses and consumers.
However, the FTA is not all-encompassing, and there are still some restrictions on trade. For example, certain goods must meet specific rules of origin criteria in order to qualify for tariff-free status. There are also new customs procedures and border checks to contend with, which could cause delays and additional costs.
On the issue of services, the TCA is less comprehensive. Although some sectors (such as air transport and professional services) have been given specific provisions, the overall agreement is relatively limited. This means that UK businesses may face more barriers when trying to sell services to EU clients, or when attempting to operate within EU countries.
Another important aspect of the TCA relates to security. The agreement includes provisions for cooperation between the UK and EU on issues such as law enforcement, data sharing, and extradition. This should help to maintain existing levels of security cooperation and prevent cross-border criminal activity.
Overall, the TCA represents a compromise between the UK and EU. It aims to maintain close ties between the two entities while acknowledging the UK`s decision to leave the EU. However, there are still likely to be significant challenges ahead as both sides adjust to the new reality of a post-Brexit world. As always, the devil will be in the detail, and the true impact of the TCA will only become clear over time.