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The European Union and Britain have released the full text of their post-Brexit trade deal, detailing the areas over which both sides fiercely debated for months.
The 1,246-page document sets out in particular the fine print on how disputes over trade and on the politically sensitive issue of fishing rights will be addressed.
The pact, agreed on Christmas Eve, will be ratified by the British parliament next week and will provisionally enter into force in the EU pending a vote by the European Parliament scheduled for next month.
It replaces a transitional trade agreement that Britain has with the EU and that ends next Thursday (New Year’s Eve).
Rates
The agreement avoids tariffs or quotas on almost all goods produced in the UK and the EU that move between the two parties.
British exports must meet EU health and safety standards and compliance rules, and there are strict rules governing products made from parts sourced from outside the EU or the UK.
Disputes
The UK rejected any role for the EU Court of Justice, so disputes will be dealt with by the World Trade Organization or ad hoc arbitration tribunals made up of three independent legal and commercial experts, should the consultations fail.
This general treaty will be supervised by an “Association Council” with representatives from both parties.
Several committees dependent on that Council will supervise the different aspects of the treaty. There is also the option for MEPs to form a “Parliamentary Association Assembly”.
Fishing
The thorny issue of EU fishermen’s access to Britain’s rich waters was resolved with a compromise: EU vessels will gradually give up 25% of their current quotas over a transition period of five and a half years.
After that, there will be annual negotiations on how much fish EU vessels can take out of British waters.
If the UK limits EU access or catches, Brussels can retaliate with tariffs on UK fish or other goods, or even suspend much of the trade deal while keeping fair competition rules intact.
An arbitration tribunal can be called to ensure that the punishment is proportionate to the evidence of the damage caused.
Level playing field
The EU insisted on “level playing field” rules to prevent British companies from undermining their European rivals with lower labor, environmental or tax standards or unfair subsidies.
The UK will establish an independent authority to decide competition law as a counterpart to the role of the European Commission, and both will uphold common principles.
Temporary subsidies that respond to a “national or global economic emergency” – the impact of the coronavirus pandemic, for example – will not be prohibited when they are “provided.”
Courts on each side, including the Court of Justice of the European Communities, although not specifically mentioned in this part of the treaty, will be tasked with deciding trade solutions on unfair subsidies.
customs
Britain will leave the EU customs union along with the single market at the end of the year, which means that companies are facing new red tape for imports and exports across the English Channel.
The UK said the deal allows for the recognition of “trusted trader” schemes that could cut red tape on both sides, but how widely it can be applied remains to be seen.
Security
The deal will see the two continue to share passenger DNA, fingerprints and details and see them cooperate through the EU’s Europol.
Brussels said “security cooperation may be suspended should the UK breach its commitment to continued adherence to the European Convention on Human Rights.”
‘Big changes’
Despite the agreement, both parties warn that from January 1 there will be “big changes” for people and businesses across Europe.
Citizens of the UK and EU will no longer enjoy free movement to live and work between the two.
“The free movement of people, goods, services and capital between the UK and the EU will end,” Brussels said in a statement when the deal was reached.
The agreement specifies which business travelers are free from needing a short trip visa. Musicians, entertainers and performers are left off that list, which means they might need visas for paid concerts abroad.
Link to agreement
The full text of the EU-UK agreement can be found here.
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