Averted a Brexit hard landing … British-EU ’47-year coexistence’ period

The British dramatically agreed on the 24th (local time) to negotiate to get away from the European Union starting on January 1 of next year. On this day, the two parties concluded the Brexit negotiations (Brexit, the withdrawal of the United Kingdom from the EU), and a period was sealed in the 47 years of cohabitation after the European Economic Community (EEC), the predecessor of the EU in 1973.

The two sides reached an agreement on future relations, including the Free Trade Agreement, about a week before the deadline for negotiations at the end of the year. As a result, concerns about the ‘Brexit hard landing’ that the UK is breaking up with the EU without any deal and the uncertainty associated with it have also disappeared.

In a statement on the day, the British government said: “This deal has delivered on promises to the people in the 2016 (Brexit) referendum and (last year’s) general elections.” Said. “This agreement means that the United Kingdom will have full political and economic independence from 1 January 2021.”

British Prime Minister Boris Johnson said: “We will be friends, allies and supporters of Europe and truly the best mayors. Although we have left the EU, the UK will be culturally, emotionally, historically, strategically and geopolitically with Europe.” said.

At a press conference held the same day after the head of the EU administration, Urzula von der Raien, agreed, “we finally reached an agreement” and said: “It was a long and tortuous road, but at we had a good deal at the end. ”

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British citizens need a visa to stay in the EU for a long time … Installation of customs clearance facilities at the border

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The dramatic conclusion of Brexit … What will change from the new year?

The British disappear the rights of residence in the EU
Separate visa is required to work or study abroad

EU citizens cannot move freely
Trade free of tariffs and quotas continues

Finance and diplomacy are negotiated separately

As the European Union (EU) and the United Kingdom signed a dramatic conclusion to the Brexit negotiations on 24 (local time) on 24 (local time), the two sides will undergo many changes from January 1 of next year. The draft ‘Trade and Cooperation Agreement’ agreed upon when the two sides concluded future relationship negotiations, including the Free Trade Agreement, covers various sectors such as trade in goods and services, state subsidies and fisheries. However, this agreement did not address specific details related to financial services, foreign policy, foreign security and defense cooperation.

First, in the field of commodity trade, the two sides agreed to keep trade duty-free on commodities even after Brexit. For products not subject to tariffs, it has also decided to continue quota-free trade, which can be traded without a quantity limit.

However, as the UK pulled out of the single market and the EU customs alliance, borders are set for customs clearance and regulation in trade in goods on both sides. As a result, customs clearance and quarantine procedures are applied when moving goods, making it difficult to trade products. The EU Commission explained: “It is inferior compared to market access in a single market, but this agreement will provide sustainable connectivity in air, road, rail and sea.”

Freedom of movement between the UK and the EU disappears. In the future, British citizens will need a visa to stay in the EU member states for more than 90 days. This means that the right of the British to work, study, do business or live as citizens of the EU member states disappears. The free movement of citizens of the EU member states in the UK has also ended.

The fisheries issue, which had been an obstacle until the end of the negotiations, was hampered by British concessions, but the controversy persists. The two parties agreed to cut the EU catch quota in UK waters by 25% over the next five years and six months. EU fishing vessels have agreed to negotiate access to British waters annually. Initially, the UK insisted on reducing the catch quota by between 60% and 80% for three years.

However, many fishing grounds in North West Europe, which have long operated in British waters, are not satisfied with the agreement. The possibility of the UK completely blocking access of EU vessels to the waters after 5 years and 6 months cannot be ruled out. Currently, the amount of catches by EU fishing vessels in UK waters is 650 million euros (about 875 billion won). Michelle Barnier, head of the EU in future relations negotiations between the two parties, announced that after the announcement of the agreement, the EU will preserve the interests of fishing workers in member countries.

In addition to the fisheries issue, an agreement was reached through concessions by the EU on the environment of fair competition in which the opinions of the two parties differed until the end of the negotiations. In the agreement, both parties agreed to establish a common, legally binding principle regarding state subsidies. Initially, the UK has revealed its policy to strengthen its competitiveness by providing subsidies or preferential treatment to domestic companies after Brexit. In response, the EU has argued that even after Brexit, the UK should ensure a fair competitive environment in relation to state subsidies, taxes, the environment and labor rights to prevent UK companies from making unfair profits. compared to EU companies.

The two sides decided to discuss and prepare a common principle that sooner or later can be enforced in court and that illegal subsidies can be recovered. Furthermore, after Brexit, it was decided to establish a ‘Rebalancing Mechanism’ which includes an independent arbitration procedure in preparation for the situation where the regulations of both parties change in fields such as the environment and labor rights. The side affected by the disadvantage may impose fees to restore fair competition.

Unlike commodity trading, details of the financial services sector in which the UK is strong were not addressed in detail in the agreement. The two parties agreed to negotiate separate regulations on financial services based on the Memorandum of Understanding (MOU). For the UK to continue its role as a global financial center, it is necessary to judge that the effectiveness of financial regulation and supervision in the UK, which is a non-EU country, meets EU standards. This is because UK finance companies can operate in the EU without a separate authorization. However, the day’s deal did not include EU decisions on regulatory equivalence.

The cooperation between the two judicial authorities and the police continues even with the UK’s withdrawal from the European Organization for Legal Cooperation (Eurojust) and the European Police Agency (Europol). The UK can continue to use its EU regional database to share police alerts on disappearances, thefts and more. Information such as fingerprints and DNA databases related to terrorism will also be used together.

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