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The United Kingdom and the European Union released the full text of their landmark trade deal on Saturday, according to Reuters.
The document was published just five days before the United Kingdom emerged from one of the most important trading blocs, in the most significant global movement since the loss of the empire.
The text includes 1,246 pages of the trade document, as well as agreements on nuclear energy, intelligence sharing, civil nuclear energy and a series of joint statements.
The agreement assumes that as of 23:00 GMT on December 31, when the UK finally leaves the European single market and the customs union, no tariffs will be imposed on the movement of goods originating in the EU or UK.
The treaty explicitly recognizes that investment and trade need conditions for “open and fair competition.” Regarding financial services, the foundation of the British economy, the two parties simply agree to “establish a favorable climate for the development of trade and investment.”
The text includes many detailed annexes on topics such as fishing, wine trade, medicines, chemicals, etc.
The post-Brexit trade deal negotiated in the last hundred meters will allow the UK to have a “special relationship” with the EU, said British Minister Michael Gove, using a term traditionally used to describe the close relationship with the United States.
The trade deal now allows us to put the unpleasant and difficult Brexit process behind us and begin a new, more hopeful period, Gove wrote in a comment published in The Times on Saturday, warning that, starting in January 2021, more things will change and more will change. companies will have to adapt.
On the other hand, the European executive has proposed a “Brexit adjustment reserve”, endowed with 5,000 million euros, to help counteract the economic and social consequences in the sectors most affected by the departure of the United Kingdom from the EU, on 1 January 2021..
The reserve will help affected companies and sectors, especially fishing, and will include support for job creation and training, according to a statement from the European Commission published on Friday. The money will also be used to provide assistance to public administrations in the operation of customs, border, sanitary and phytosanitary controls and to guarantee essential services to affected citizens and companies.
The Brexit adjustment reserve will cover expenses in each Member State for 30 months and will be divided into two tranches: most of the money will be released through pre-financing in 2021, and the amounts will be calculated based on the impact on the economy of each State member. take into account the degree of economic integration with the UK, including trade in goods and services, and the negative effects on the EU fisheries sector; A smaller tranche of additional aid will be allocated in 2024, if actual spending exceeds the initial allocation.
To receive refunds from this reserve, Member States will need to demonstrate the direct link between their requests and Brexit. The proposed regulation must be approved by the European Parliament and the Council.
The European Commissioner for Cohesion and Reform, Elisa Ferreira, said in a statement that the end of the transition period, on December 31, 2020, “will have a significant economic and social impact on the regions and local communities that have the strongest ties. with the economy and trade in the UK. “
For his part, the Commissioner for Budget and Administration, Johannes Hahn, said that the structural adjustment to the new relationship with the United Kingdom “will require a much greater long-term adjustment than what this reserve can provide” and that the future budget of the EU will be reflected this reality.
