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GOODS
Market Access No tariffs, fees, charges No tariffs, fees, charges MUTUAL COMPROMISE
and quantitative having equivalent effect - zero tariffs and zero
restrictions on trade in or quantitative quotas
manufactured and restrictions across all
agricultural goods sectors provided that a
between UK and EU, level playing field is
where goods meet ensured through robust
relevant rules of origin commitments. All
customs duties or taxes
on exports or any
measures of equivalent
effect should be
prohibited and no new
ones should be
introduced.
Trade Remedies A chapter that reaffirms A handful of provisions UK WIN - The UK’s WTO
our WTO commitments reaffirming WTO plus proposals were all
on trade remedies. provisions at a high level. included in some form.
Select ‘WTO plus’ None of the UK The EU’s unprecedented
provisions that covered proposed ‘WTO plus’ proposal protecting ‘green
the application of an provisions, but one box’ agricultural subsidies
economic/public interest specific ‘WTO plus’ (part of the CAP) from
test, the lesser duty rule provision seeking to challenge was not
in accordance with their restrict our ability to included.
domestic legislation, and challenge ‘Green Box’
that neither party may agricultural subsidies at
apply multiple safeguard the WTO.
measures to the same
good, at the same time.
Technical Assert UK’s right to EU wanted to tie the UK UK WIN - The text makes
Barriers to regulate, applying to more closely to its clear the UK’s right to
Trade trade in all manufactured regulatory framework. regulatory autonomy, but
goods, as well as to agri- at the same time contains
food products for issues helpful provisions on
not covered by sanitary regulatory cooperation,
and phytosanitary (SPS) which the Commission
requirements. had resisted. In specific
areas such as our
approach to conformity
assessment (testing to
ensure the safety of
goods) the UK
successfully resisted
attempts to tie us to EU
approaches.
Technical A comprehensive TBT EU ambitions in a TBT MUTUAL COMPROMISE
Barriers to chapter spanning chapter were more – much of the chapter is in
Trade 2 technical regulation, limited except in areas line with the WTO TBT
conformity assessment, where they saw an agreement but helpfully
standardisation, advantage to themselves goes beyond it in certain
accreditation, metrology, in going further than the areas where either the UK
market surveillance, and WTO TBT agreement. wanted stronger
marking and labelling, provisions (e.g. regulatory
building upon the WTO co-operation) or the EU
TBT Agreement, and in did (supplier’s declaration
line with recent EU Free of conformity).
Trade Agreements such
as CETA and the EU-
Japan EPA.
Sectoral The UK wanted annexes The EU resisted UK WIN – There are five
Annexes to the TBT chapter on inclusion of such sectoral annexes including
chemical substances; annexes. on chemicals, motor
motor vehicles and parts; vehicles and medicines,
organic products, and organics and wine even
medicines. though the Commission
had previously resisted
inclusion of any annexes
at all (although the
annexes are less
ambitious than initial UK
proposals).
VAT and debt Did not see any need to Wanted unprecedented MUTUAL COMPROMISE
recovery agree for 1 January, agreement of – we have agreed a VAT
although welcome cooperation provisions and debt recovery protocol
cooperation on VAT on recovery of indirect that builds on international
agreed to longer taxes (VAT, customs agreements but with
timeframe, on Norway duties, excise) and direct modernised terms and
model [position not taxes. appropriately restricted to
stated to Cion.] indirect taxes (VAT,
customs duties and
excise), rather than the
disproportionate measures
proposed by the EU.
SERVICES
Core rules on The agreement should The agreement should MUTUAL COMPROMISE
trade in include provisions on include provisions on – The agreement includes
services and market access, national market access, national modern rules on trade in
investment treatment, prohibition of treatment, prohibition of services and investment.
performance performance This provides business
requirements, local requirements, senior with certainty and
presence, senior managers and boards of confidence about the
managers and boards of directors, and MFN (if operating environment for
directors, and MFN (if the deal is high services supply and
the deal is high ambition). investment.
ambition).
The UK secured local
presence; the EU secured
a less ambitious outcome
on senior managers and
boards of directors.
Mode IV Mode IV provisions Several elements less MUTUAL COMPROMISE
building on CETA and ambitious than EU-Japan – The agreement includes
EU-Japan (length of stay for several EU-JP elements that were
categories, no national not tabled by the EU, most
treatment provisions for notably on short-term
short-term business business visitors.
visitors, no investor
category) The agreement did not
include an investor
category, in line with the
EU’s proposal, which was
incompatible with the UK’s
domestic immigration
policy.
Telecoms Fair and equal access to No more than what is UK WIN – the agreement
networks and services, precedented in other EU goes beyond EU’s best
preventing anti- FTAs. precedent on foreign
competitive practices shareholding,
and delivering benefits No EU-Japan provisions authorisation and net
for consumers. on regulatory neutrality, with
cooperation regarding clarifications to protect the
mobile roaming. UK’s regulatory autonomy
– in particular our ability to
protect children from
online harms.
International The UK mandate did not The agreement should EU WIN – the Agreement
maritime include specific include sector specific includes a specific section
transport provisions on obligations regarding on international maritime
services international maritime international maritime transport services and an
transport services or transport services but not SME chapter. AV is
SMEs. It did propose on audio visual services. excluded. None of these
sector-specific content It should include a was a significant win for
on Audio-VIsual chapter on SMEs. the EU. The UK was not
particularly defensive on
IMTS or the SME chapter
(and indeed these appear
in other UK FTAs). We
always knew that the
French would veto AV
content, but it was
important for us to include
it as a signal of intent of
what we want to do in our
other trade agreements.
Financial A chapter that builds on A chapter only reflecting EU WIN - The FS chapter
Services EU-JPN in areas like standard EU precedent text is very heavily
new financial services. and no annex. precedented. There is no
As well as (annexed) regulatory cooperation
provisions on regulatory annex although there is a
cooperation. short Joint Declaration
which says both parties
will agree by March 2021
a Memorandum of
Understanding
establishing the framework
for structured regulatory
cooperation on financial
services, based on a
shared commitment to
preserve financial stability.
Digital Facilitate modern forms Facilitate digital trade, UK WIN - Deal is near the
of trade […] in both new, addressing unjustified level of their best
technology-intensive barriers to trade by precedent, with most
businesses and electronic means notably the first EU FTA
traditional industries…in provisions on open
specific areas, go government data and
beyond precedents to unprecedented provisions
reflect the direction of prohibiting requirements to
travel in current digital store or process data in a
trade negotiations specific location, thus
reducing burdensome
costs for British business.
Public The UK mandate did not The agreement should MUTUAL COMPROMISE
procurement include public include provisions - The agreement includes
procurement. regarding public provisions regarding public
procurement that build procurement. However,
on the Parties’ though they build on the
commitments at the Parties’ commitments at
WTO The envisaged the WTO, the UK watered
partnership should down the EU’s original text
commit the Parties to sgnificantly to remove its
standards based on over-prescriptive elements
and make it compatible
and going beyond with the UK introducing its
those of the GPA. own independent public
procurement system.
Equivalence / Wanted a tool to allow Wanted the ability to UK WIN - The UK rejected
The the Treaty to be impose unilateral tariffs the EU’s asks for an
‘Rebalancing reopened in the future in the event the UK ‘equivalence’ mechanism,
mechanism’ and change LPF diverged too and instead secured a
provisions if they prove substantially from EU review and rebalancing
too onerous norms. clause which allows either
side to initiate a formal
review of the economic
parts of the deal, including
the level playing field
provisions, and update the
balance of the agreement
over time. Any short-term
rebalancing measures are
strictly limited and
proportionate and subject
to the approval of an
independent arbitration
panel.
Subsidies The UK was clear that it The EU wanted us to UK WIN - The deal allows
intended to establish its accept dynamic the UK to set up its own
own regime of subsidy alignment with EU state subsidy regime and not
control. We asked for aid policy and wanted have to follow the EU’s
reciprocal transparency the UK to adopt the state aid regime or
commitments and a right same procedures that procedures (the UK can, if
to request consultations exist in the EU, it wants, have an ex-post
on any subsidy that particularly “ex ante” regime). However, the UK
might be considered to approval of subsidies by will have to ensure that its
harm each other’s an independent body. . subsidy regime respects
interests. In addition, it wanted a certain principles that are
unilateral right to impose set out in the Treaty. The
remedial measures (eg deal also allows both
tariffs) on the UK if it parties to adopt remedial
considered the UK measures on a reciprocal
granted inappropriate basis and with tight
aid. This option would controls, including
be available only to the compensation for abuse of
EU, not to the UK. the mechanism.
FISHERIES
LAW ENFORCEMENT
Real-time alerts Mechanism for the UK Simplified, efficient and MUTUAL COMPROMISE
on and EUMS to share and effective exchange of – EU said that the UK
missing/wanted act on real-time data on existing information and could not access SIS II as
persons or persons and objects of intelligence between the not part of Schengen (i.e.
objects / SIS II interest including wanted UK and EUMS law not linked to CJEU
persons and missing enforcement authorities, position). UK did not
persons, per SIS II. in so far as is technically accept Swedish Initiative,
and legally possible, and but we agreed Operational
considered necessary Cooperation providing
and in the Union’s another basis for bilateral
interest. EU offered the information exchange
‘Swedish Initiative’ between UK and EUMS
law enforcement
authorities.
Europol Third country agreement Third country agreement UK WIN – Arrangements
with Europol, with ability in line with precedents. based on third country
to go beyond given scale precedent but which
/ nature of UK respect scale of UK
contribution. contribution + fast and
effective information
exchange + access to
SIENA secure messaging
system and ability to
second liaison officers.
Market support The UK sought to ensure The EU sought the MUTUAL COMPROMISE
measures that energy markets inclusion of wide-ranging – UK limited the
were suitably compatible provisions that aimed to supporting measures to
to enable trade to take ensure energy markets those most relevant to the
place, whilst respecting were competitive, non- trading arrangements,
each party’s right to discriminatory and open whilst retaining regulatory
make independent to access. freedom. EU content their
decisions on their energy core energy market
policies. liberalisation provisions
were included.
Technical The UK sought technical The partnership should UK WIN – The parties
cooperation cooperation between establish a framework to agreed cooperation across
electricity and gas facilitate technical all the Energy Title. Most
network operators and cooperation between notable is the commitment
organisations in the electricity and gas to build on the North Seas
planning and use of network operators and Energy Cooperation,
energy infrastructure organisations. through the establishment
connecting their of a specific forum for
systems. This included technical discussions in
cooperation to support relation to jointly realising
decarbonisation projects the large renewable
in the North Seas. energy potential of the
North Seas. Securing this
depth of cooperation on
this issue was a priority
ask for the UK.
CIVIL NUCLEAR
TRANSPORT
Unlimited rights between Reliance on EASA for
points in the UK and certification processes;
points in the EU (3 and
rd
only one technical annex
4 freedoms+);
th
on airworthiness
Modern commercial
practices, including
liberal code-sharing and
wet-leasing
arrangements
PROGRAMMES
Programmes Standard third country Novel terms for UK MUTUAL COMPROMISE
participation terms for participation in EU – UK participates in Union
Horizon, Copernicus and programmes inc. 1-way programmes on a fair and
Euratom financial correction balanced set of terms.
mechanism on Horizon
Europe; new
participation fee to cover
admin costs.
THEMATIC COOPERATION
Cyber Security No ask, but open to Cyber dialogue and MUTUAL COMPROMISE
cooperation where it is in commitment to – We didn’t initially want
our interests. cooperate in international formal arrangements, and
fora. Plus UK-CERT EU what we have agreed is
cooperation + UK permissive and mutually
participation in NIS beneficial.
Cooperation Group + UK
participation in ENISA Includes voluntary
participation with expert
committees and bodies
including.
+ Arrangements on
sensitive non-classified
information.
Social Security Agreement should cover SSC provisions as part UK WIN - Personal scope
Cooperation aggregation and export of a Mobility package. widened to capture
of pensions; necessary Practical copy paste of anyone going to travel,
healthcare; prevention of current EU SSC work or live between the
payment of dual regulations, but applying UK or the EU. This will
concurrent contributions only to a narrow cohort mean more individuals will
for people working in the of students, benefit from the Protocol.
EU, covering all researchers. The Protocol also allows
persons. the UK to restrict access
to family benefits for EU
citizens until they obtain
permanent residence. The
export of child benefits will
also end for EU citizens
coming to the UK in the
future.
GOVERNANCE
[i]
The substantive provisions reflect current MS domestic rules which will not change as a result of the
agreement. However, this inclusion does improve the transparency of these restrictions and raises the
prospect that if MS domestic rules change in future, they will be locked in.