The UK and the European Union have reached an interim free trade agreement that should avoid the chaos of the New Year for cross-border traders and bring some certainty to businesses after years of the Brexit crisis.
Just over a week before the UK split from the EU, the British government said “the deal is done”.
European Commission President Ursula von der Leyen said she was pleased with the agreement.
“At the end of a successful negotiation journey, I normally feel joy. But today I just feel quite satisfaction and, frankly, relief. I know it’s a difficult day for some, and for our friends in the UK, I want to say: breaking up is such a sweet pain, “von der Leyen told reporters.
The British Prime Minister, Boris Johnson, said that the agreement reached what those who voted for Brexit were looking for.
“We have taken control of our laws and our destiny. We have taken control of every note and title of our regulations in a complete and unfettered manner,” Johnson said in televised remarks.
He stressed that, under the terms of the new agreement, Britain will remain close to Europe.
“We will be your friend, your ally, your supporter and, indeed, we will never forget, your number one market. Because, even though we left the EU, this country will remain culturally, emotionally, historically, strategically, geologically attached to Europe, “Johnson continued.
The 500-page agreement should ensure that the two parties can trade in goods without tariffs or quotas. But despite the discovery, key aspects of the future relationship between the bloc of 27 nations and its former member remain uncertain.
Both the British and European parliaments must vote on the agreement, although the latter may not happen until after the UK leaves the EU’s economic embrace on 1 January.
Months of tense and often difficult negotiations have gradually reduced the differences between the two sides to three key issues: rules of fair competition, mechanisms for resolving future disputes and fishing rights. EU boats’ rights to trawl in British waters remained the last hurdle before it was resolved.
However, key issues in the future relationship between the bloc of 27 nations and its former member remain unresolved.
Johnson insisted that Britain would “thrive” even if no agreement was reached and Britain would have to trade with the EU under the terms of the World Trade Organization. But his government has acknowledged that a chaotic exit could lead to blockades in UK ports, a temporary shortage of goods and rising commodity prices.
The EU has long feared that Britain will undermine the bloc’s social, environmental and state aid rules after Brexit, becoming a rival with less regulation on the bloc’s doorstep. Britain denies it intends to set weaker standards, but said continuing to comply with EU regulations would undermine its sovereignty.
Finally, a compromise was reached on the difficult issues of “fair playing conditions”. The minor but highly symbolic economic problem of fish has become the last stalemate, with EU maritime nations seeking to maintain access to the waters of the UK where they have fished for a long time, and the UK insists it must exercise control as a “coastal state”. independent”.
Huge gaps in fisheries were gradually closed during the weeks of intense negotiations in Brussels, although Johnson continued to insist that a no-go was a likely and satisfactory outcome to the nine months of talks on the future EU-EU relationship. member nation.
It’s been four and a half years since the British voted 52% -48% to leave the EU and – in the words of the Brexiteers slogan – “take control” of Britain’s borders and laws.
It took more than three years of fighting before Britain left the bloc’s political structures on January 31. The economies that have been closely linked as part of the EU’s single market for goods and services have lasted even longer.
The UK remained part of the single market and the customs union during an 11-month transition period after Brexit. As a result, many people have so far seen little impact from Brexit.
On January 1, the breakup will begin to feel real. The new year will bring huge changes, even with a trade agreement. Goods and people will no longer be able to move freely between Britain and its continental neighbors without border restrictions.
EU citizens will no longer be able to live and work in the UK without visas – although this does not apply to the more than 3 million who already do so – and the British will no longer be able to work or withdraw automatically in EU countries. Exporters and importers face customs declarations, controls of goods and other obstacles.
The UK-EU border is already moving away from the new restrictions on UK travelers to France and other European countries due to a new coronavirus variant crossing London and southern England. Thousands of trucks were stranded in traffic jams near Dover on Wednesday, waiting for their drivers to take antivirus tests so they could enter the Eurotunnel to France.
British supermarkets say the backlog will take a few days to clean up and there could be a shortage of fresh produce during the holiday season.
Despite the agreement, there are still unanswered questions on huge areas, including security cooperation between the UK and the bloc and access to the EU market for the huge financial services sector in the UK.