Signing of the EU-UK Trade and Cooperation Agreement

The EU-UK Trade and Cooperation Agreement concluded between the EU and the UK establishes preferential arrangements in areas such as trade in goods and services, digital trade, intellectual property, public procurement, aviation and road transport, energy, fisheries, social security coordination, law enforcement and judicial cooperation in criminal matters, thematic cooperation and participation in Union programmes. It is underpinned by provisions ensuring a level playing field and respect for fundamental rights. While it does not match the level of economic integration that existed while the UK was an EU member state, the trade and cooperation agreement goes beyond traditional free trade agreements and provides a solid basis for preserving the long-standing EU-UK friendship and cooperation.
The trade and cooperation agreement was signed on 30 December 2020, provisionally applied from 1 January 2021, and entered into force on 1 May 2021.
The EU-UK Trade and Cooperation Agreement consists of:
A free trade agreement where it is an ambitious cooperation on economic, social, environmental and fisheries issues. The agreement covers not only trade in goods and services, but also a wide range of other areas of interest to the EU, such as investment, competition, state aid, tax transparency, air and road transport, energy and sustainability, fisheries, data protection and social security systems coordination.
A close partnership for citizens’ security which establishes a new framework for law enforcement and judicial cooperation in criminal and civil matters. It recognizes the need for close cooperation between national police and judicial authorities, especially in combating and prosecuting cross-border crime and terrorism. The agreement creates new operational capabilities, taking into account the fact that the UK, as a third country outside the Schengen area, will not have the same structures as before. Security cooperation can be suspended if the UK violates its commitment to ongoing adherence to the European Convention on Human Rights and its domestic enforcement.
A comprehensive governance framework. To provide maximum legal certainty for businesses, consumers and citizens, a specific chapter on governance clarifies how the trade and cooperation agreement operates and is controlled. A joint partnership council is also established to ensure the proper application and interpretation of the agreement and where all arising issues will be discussed. Binding enforcement and dispute resolution mechanisms will ensure respect for the rights of businesses, consumers and individuals. This means that businesses in the EU and the UK will compete on a level playing field, and that the possibility of either party using its regulatory autonomy to grant unfair subsidies or distort competition will be avoided. The agreement provides for the possibility of implementing rebalancing measures, corrective measures, compensatory measures and safeguard measures. Both Parties can take cross-sectoral countermeasures in case of violations of the trade and cooperation agreement. This possibility of taking cross-sectoral countermeasures applies to all areas of the economic partnership. Specific suspension clauses apply to law enforcement and judicial cooperation in case a Party breaches its obligations.