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Rand four and a half years have passed since the British voted to leave the EU. Now, after extremely long negotiations, the European Union and Britain have agreed to a Brexit trade pact on Christmas Eve.
After the historic agreement, the analysis of the agreement is now in full swing. The economy in particular will be closely watched. Representatives from all sectors welcomed the agreement. The German-British Chamber of Commerce and Industry (AHK) in London spoke with a “sigh of relief.” But the very short time it takes to rummage through the thick document is cause for concern. Chancellor Angela Merkel had already recognized the agreement as historic.
On the EU side, however, the treaty can no longer be ratified in time, but is only applied provisionally. Therefore, to make the necessary preparations, the German Council Presidency convened a meeting of the EU ambassadors on Friday. On the British side, the government has announced that it will be referred to Parliament on December 30.
In an interview with WELT, German MEP David McAllister expressed optimism regarding the expected ratification of the agreement in the EU Parliament. “We have a political responsibility to avoid an unregulated transition and to keep negative consequences for citizens and businesses as low as possible,” said the CDU politician, who is also a Brexit representative in the EU Parliament. According to him, the agreement can be applied initially without the consent of Parliament. However, this “should not set a precedent for future trade deals.”
“The economy must adapt to profound changes”
AHK boss Ulrich Hoppe warned that the economy had to adapt to “deep changes” despite the deal. “From the first day after the Brexit transition phase, trade in goods and services will become more expensive and in some cases may even stall as a result,” Hoppe said. The general manager of the BDI industry association, Joachim Lang, emphasized: “The agreement is better than no agreement.” However, the pact still means additional bureaucracy and unnecessary border paperwork for most companies.
“Many companies will violate regulations because they are not yet familiar with the new flood of rules,” said York-Alexander von Massenbach of the British Chamber of Commerce in Germany. “The deal comes too late for companies. Working with 2,000 pages of text in a few days and identifying the possible consequences is difficult to achieve, ”he said.
The contract is intended to reorganize the relationship between the two parties as of January 2021. The most important point is to avoid tariffs, allow unlimited trade in both directions and limit friction losses as much as possible. Britain left the EU at the end of January but remains a member of the EU internal market and the customs union during a transitional phase of Brexit until the end of the year. Without an agreement, more complex customs duties and controls would have been necessary. Business representatives from both sides had warned of disruptions and the loss of tens of thousands of jobs in this case.
There was relief on both the British and European sides. WELT summarizes the core reactions to the conclusion of the deal.
The head of the EU Commission, Ursula von der Leyen
“It took a while, but now we have an agreement. It was a long and rocky road. But the result is good. “
Prime Minister Boris Johnson
“We will be your friend, your partner, your supporter and, not forgetting, your number one market.”
“I think it is good business for all of Europe.”
“We have regained control of our destiny.”
When he announced his Brexit trade pact with the EU, British Prime Minister Boris Johnson recalled in fashion one of the most controversial negotiating topics. Lots of small fish adorned his dark tie when he announced the breakthrough in months of negotiations in London on Christmas Eve. Until recently, the access of EU fishermen to British waters was one of the most contentious issues between London and Brussels.
At a dinner between the head of the EU Commission, Ursula von der Leyen, and Johnson, cooks in Brussels had recently served cakes on the subject of fishing: the main dish was scallops, on which a bitter dispute between France and Great Britain in the English Channel.
Chancellor Angela Merkel, CDU
“With the agreement we are creating the foundations for a new chapter in our relationship.”
“I am pleased that the negotiators of the European Union and Great Britain have reached an agreement and that future relations between the European Union and Great Britain are clearly regulated. This is of historical importance. “
French Head of State Emmanuel Macron
“European unity and stability have paid off.”
“Europe is moving forward and can look forward to a united, independent and strong future”
Federal Minister for Foreign Affairs, Heiko Maas, SPD
“It was a marathon of negotiations, but in world record time and with a long final stretch. That much-cited extra effort was worth the effort. “
“We have finally seen white smoke come out of the negotiations, but the agreement is not yet finalized. As Presidency of the Council, we want to do everything possible to ensure that the agreement can provisionally enter into force on January 1, 2021. “
Minister for Foreign Affairs of Luxembourg, Jean Asselborn
“Not everything is perfect, but a deal is better than no deal”
Gero Hocker, German Fisheries Association
“December 24, 2020 will go down in history as a black day for European fishing, fishermen and their families, as well as for the coastal regions of Europe and Germany.”
“German companies are losing a historically developed status quo in the distribution of fishing rights, while British fishermen are the clear winners of the negotiations,” said Hocker. The result was also a “failure of the federal government, which failed to protect German companies from the effects of Brexit.”
Hildegard Müller, Association of the Automotive Industry
“With the result that has been released, the risk of a ‘no deal’ has been eliminated and companies can finally prepare for the implementation of a free trade agreement.
