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London and Brussels managed to defend the main requirements to conclude a final agreement on Britain’s exit from the European Union.
The United Kingdom and the European Union, 47 years after unification and four and a half years after the referendum, are finally entering a new phase, agreeing on the principles of interaction after Brexit.
The grueling cohabitation negotiations after the divorce were on the verge of failure, but a week before the end of the transition period, the parties managed to reach an agreement. Correspondent.net says the details.
Every herring taken into account
The EU and Britain reached an agreement on a trade deal on December 24 after the British left the bloc. A 1,246-page document was approved.
The draft Trade and Cooperation Agreement consists of three main blocks: in fact, a free trade agreement, agreements on a “new association in the interest of the security of our citizens” and provisions regarding the control of the execution of the transaction.
“It took a while, but now we have an agreement. It was a long and thorny road. However, the result is good,” said Ursula von der Leyen, president of the European Commission.
She called the deal “fair and balanced.” “This is the correct and responsible step for both parties,” added von der Leyen.
“The deal was worth fighting for,” he said, because the approved deal “will protect our European interests, ensure fair competition and much-needed predictability for the fishing industry.”
“Departure, what sweet sadness … We can finally put Brexit behind us. Europe can move forward,” said the president of the EU’s main body.
British Prime Minister Boris Johnson, in turn, announced his victory.
“Four and a half years ago, the British people voted to regain control of their money, borders, laws, waters, and leave the EU. Earlier this year, we fulfilled this part of this promise: we left the EU on 31st January”. he recalled, noting that the commercial agreement signed allows compliance with the rest.
In a cherry tie from the head of the British government, journalists examined small fish. It was for the fishing industry and control of “its waters” that the British delegation fought to the end, not allowing the European Union to maintain current fishing quotas in the British economic zone.
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When it comes to fishing, the British are winning. They currently catch half of the fish in their territorial waters, and that proportion will increase to “two-thirds” in five and a half years, Johnson explains.
“This is exciting news for families and businesses across the UK. We have signed the first trade agreement with the EU based on the principle of zero tariffs and quotas,” a British government source told dpa.
Recall that British citizens voted to leave the European Union in the summer of 2016. At midnight on February 1, 2020, Britain left the EU. But it was not possible to agree on the terms of the “divorce” in four and a half years, despite the extension of the so-called transitional period.
The main problem for a long time has been the customs situation in Northern Ireland.
The European Union started from the assumption that this part of Great Britain would remain in the European customs union, and a kind of customs border, a cap, would be created between it and the rest of the kingdom.
In the end such an agreement was reached, although for a long time this particular scenario categorically did not suit London, where they fear the rebirth of Irish separatism and therefore proposed to create a customs free zone in Northern Ireland. But Brussels found the idea too beneficial for London.
What will change after the UK-EU agreement enters into force:
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duty-free trade in goods remains
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customs control at borders
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British financial institutions lose their privileges in the EU
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limited access of UK service companies to European markets
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professional qualifications obtained in the UK are not automatically recognized in the EU
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Britain gains control over its own business support policy
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long-term visa regime
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reduction of fishing quotas
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independent arbitration for dispute resolution
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The jurisdiction of the European Court of Justice in Luxembourg does not extend to the United Kingdom to resolve disputes over economic regulations.
What the experts say
The main achievement of the deal is that it helped avoid a “no-deal Brexit” situation, in which the parties would not reach an agreement on the format of future relationships, the Barclays Bank notes analytical note notes. In this case, duties of up to 40% could be imposed on certain categories of products.
“Businesses were deeply concerned about the no-deal scenario, as this would lead to disruptions in trade and could also create chaos at borders, which in turn could cause disruptions in the supply of essential goods and price increases at least initially, “he writes in Barclays.
However, the renowned Swiss newspaper Neue Zürcher Zeitung points out that, from an economic point of view, abandoning the internal market and the EU customs union, the difficult exit option that Johnson promoted, is harmful nonsense.
“The UK voluntarily terminates its trade in well-functioning goods and services with its most important partner. This brutal Brexit is one of the greatest acts of self-harm in the history of modern commerce. London drops the crane and waits for a tit in heaven, for example, in the form of a trade agreement with the United States. ” – says the article.
The agreement also represents an achievement for Brussels, as the UK’s economic role and proximity are essential. The absence of a contract would be a receipt for its own insolvency, the newspaper notes.
The continent will determine what type of access and under what conditions the island’s businessmen and specialists will reach the coveted common market of 450 million people.
Given that the EU has a surplus in trade in goods with Britain and a deficit in services, the new EU deal has effectively consolidated all its current advantages on paper. And in those areas where the British have an advantage, it reserved the right to erect barriers and restrictions, notes BBC News.
“In the end, the EU did what it wanted, but the UK probably didn’t. The EU avoided restoring the Ireland-Northern Ireland border and did not allow foreigners to gain priority access to its single market. Britain achieved its aim to leave the EU, but did not live up to expectations. ” Brexit advocates who hoped to keep the benefits of membership but shed the obligations and costs, “said David Hoenig, director of the British branch of the European Center for International Political Economy.
Charles Grant, director of the Center for European Reform, believes that most Britons have not yet realized how difficult it would be to leave the European Union.
“Tourists, industry and farmers will face tedious border procedures. The service sector will lose access to the EU market. Businesses that depend on European workers will suffer. And Britain will lose its appeal in the eyes of investors. foreigners, “he said.
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