Brexit

 

EU-UK Trade and Cooperation Agreement (TCA)

 

On December 31 the UK left the Single Market and Customs Union. January 1, 2021 trade with the EU began under a new a free trade agreement (TCA). 

Under the terms of the TCA:

1. Trade in goods is on a no tariff, no quota basis provided rules of origin are met. For example 65% of components of cars exported to the EU have to originate in the EU or UK.  There may be other regulatory requirements, eg technical standards and sanitary and phytosanitary rules e.g.in relation to trade in goods of animal origin.

2. Customs procedures (often on line) will be reimposed for most trade but there will be a 'trusted traders' scheme to assist exporters.

3. Trade in services is excluded except for aspects of civil aviation and road haulage.

4. Both parties will apply current standards and seek to avoid future divergences in technical standards. But there will be more non tariff barriers for UK exports eg in the chemicals sector.

5. UK fishers' share of the catch in UK/EU waters will rise to 25% over a transition period of five and a half years worth about £140 million.

6. Cooperation in policing, exchange of evidence and security data and a stream-lined extradiction procedure will enable aspects of existing security cooperation to continue in reduced form.

7. An EU-UK Partnership Council will oversee the working of the TCA with a dispute settlement procedure.