What the EU and Britain have agreed

• No fees Import duties do not apply to goods in mutual trade. Furthermore, there are no quantitative restrictions on imports. Import and export formalities, for example due to the control of other regulations, should be simplified as far as possible. Trade in the areas of automobiles, medicines, chemicals and wine must be particularly fluid.
• Fair competition To ensure that the UK continues to have free access to the EU market with 450 million consumers, the EU asked London not to undermine its standards. According to the EU Commission, the agreement now guarantees “a strong and fair competitive environment” with a “high level of protection” in areas such as environmental protection, social and labor rights and state aid. However, the EU had to give up its original demand that Britain should continue to adapt to changed standards in the future.
• Fishing rights of EU fishermen in UK waters The subject was one of the biggest controversies. Although the economic importance of around 650 million euros a year is quite low, the issue of coastal states such as France, Belgium, Denmark and the Netherlands was particularly important. Both parties agreed to a transition period of five and a half years. During this time, the fishing rights of EU fishermen will be reduced by 25 percent. Starting in June 2026, annual negotiations on catch quotas will take place with Great Britain.

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• Financial services Britain wanted broad access to the EU market for its important financial sector. For the moment, this does not go beyond normal trade agreements. The essential questions should not be clarified until March.
• traffic The agreement guarantees a continuous connection with air, road, rail and sea transport. This includes, for example, the use of airports by the airlines on the other side and unhindered forwarding traffic. According to the EU, the rights of passengers and employees are also guaranteed.
• Energy and climate There are also agreements on energy trade and connection of energy networks. Both parties want to work together on offshore wind farms in the North Sea. The agreement also provides commitments to the Paris climate agreement.
• Social security systems According to the EU, the agreement aims to guarantee a series of social rights for EU and UK citizens who move or travel to work in the other area after January 1, 2021. For people who have already entered the country before, extensive provisions already apply in the Brexit Treaty. They guarantee claims for health insurance, pensions and other social benefits.
• security There is extensive cooperation in the fight against crime and terrorism. Close cooperation between the police and judicial authorities is envisaged. The exchange of criminal records, fingerprints and passenger data was also agreed. The prerequisite is that Britain keeps its promise to continue to observe the European Convention on Human Rights.
• Increased participation in EU programs Britain continues to participate in five EU programs. This includes the Horizon Europe research program, the European Atomic Energy Community (Euratom) research and training program, the Iter nuclear fusion reactor project, the Copernicus earth observation system and the monitoring system by SST satellite. To do this, London must continue to contribute to funding. The deal, however, spells the end of British students’ participation in the Erasmus exchange program.
• Control of the agreement For the entire agreement, both parties agreed on a mechanism to resolve conflicts. The core element is a “joint association council” that monitors implementation and discusses disputes. According to the EU, this is linked to “binding enforcement and dispute resolution mechanisms” so that the rights of companies, consumers and individuals are respected. Both parties could “retaliate across sectors for breaches of the agreement,” not just for those parties to the agreement that are directly affected.

Chief EU negotiator Michel Barnier will brief representatives of EU member states on the deal on Friday morning. The German Presidency of the EU called an extraordinary meeting of the EU ambassadors for the morning (10.30 am). In Britain, parliament has to give its approval, which will be revoked from the winter break on December 30.

On the EU side, at least the governments of the 27 member states must approve the outcome of the negotiations. The aim is for the agreement to enter into force provisionally on January 1, when Britain also leaves the EU internal market and the customs union. Ratification by the European Parliament should take place retrospectively in early 2021.

The deal was reached on Thursday just days before the deadline. Without a deal, a chaotic exit would have threatened serious consequences for the economy.