Mavroudis Global Transportation & Logistics

EU-UK Trade and Cooperation Agreement: A new relationship, with major changes

December 29, 2020

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The consequences of the UK's choice to leave the EU, the single market and the customs union are many.

UK goods no longer benefit from the free movement of goods, leading to more business bureaucracy and adjustments to EU-UK supply chains. Customs formalities and controls of goods in the UK join the EU, with more delays at the border. VAT and, where applicable, excise duties (eg on alcoholic beverages, tobacco products, etc.) due on importation (including online purchases).

British producers wishing to cover both the EU and the UK, the markets must meet both sets of standards and regulations and comply with all applicable compliance controls by EU institutions (no equivalence conformity assessment).

Food exports to the UK must have valid health certificates and (phyto-) border health checks will be carried out systematically.

Service providers in the UK no longer benefit from the "Country of origin" or "passport" concept (eg for financial services), which allow automatic access to the entire EU single market.

There is no longer automatic recognition of professional qualifications: Doctors, nurses, dentists. Pharmacists, veterinarians, engineers or architects must have their qualifications recognized in each Member State in which they wish to practice.

The UK no longer participates in a seamless internal EU energy market that ensures more efficient, cheaper, safer electricity, gas and oil and is no longer part of the EU's emissions trading system and effort sharing of the mechanism.

The UK is no longer a member of the European Atomic Energy Community (Euratom) and cannot trade nuclear material and technology with Euratom.

No more free movement of people: UK nationals no longer have the freedom to work, study, start a business or live in the EU. Visitors to the UK in the EU need a valid passport. Visas are required for stays of more than 90 days in a 180 day period. There will be additional border controls and EU pet passports are no longer valid

UK carriers are no longer part of the fully liberalized EU aviation market. They can no longer operate passenger and / or cargo flights between EU destinations under a UK License, operate passenger flights to or from the EU (e.g. Amsterdam-Bangkok), will no longer participate in the EU or contribute to standards development in the Aviation Safety Agency.

The UK no longer participates in the EU Single Market for transport services and its operators lose the right to conduct unrestricted cross-border trade in the EU and up to three cabotage operations within the territory of an individual Member State. It is now becoming an independent coastal state and is free to decide on access to water and fisheries for reasons related to its international obligations.

It abandons the Common Fisheries Policy - the EU common legal framework that ensures equal access to water, stable quota allocation arrangements and the sustainable management of marine resources. Fishery products in the UK face customs and SPS controls upon entry into the EU.

The UK no longer participates or rules EU agencies for police and judicial cooperation (Europol, Eurojust) and no longer benefits from privileged cooperation between police and judicial authorities. It no longer has access to sensitive EU databases and networks that support the EU area of freedom, security and justice, such as SIS II.

The UK no longer benefits from EU funding programs (eg Next Generation EU, aimed at accelerating the EU collective recovery from the Covid pandemic, regional development and cohesion funding, rural and rural development support, and many more and others). It is also excluded from sensitive high security projects or contracts.

On the other hand, there are the benefits of EU-UK trade and the Cooperation Agreement, such as zero tariffs or quotas on traded goods, lower prices for consumers - provided that the rules of origin are agreed upon.

Traders can certify the origin of products sold and enjoy "full cumulation" (ie processing. Activities are also based on origin, not just materials used), making compliance requirements easier and gaining zero invoice access.

Mutual recognition of trusted merchant programs ("Authorized economic operators") ensures easier customs formalities and a smoother flow of goods. Common definition of international standards and the possibility of self-declaration of conformity of low-risk products make it easier for producers to meet both markets with special facility arrangements for wine, organic, automotive, pharmaceutical and chemical.

Service providers or investors from the EU are treated no less favorably by UK operators in the UK and vice versa.

There will be facilities for short-term business trips and temporary secondment of highly skilled workers.

Eliminate unwarranted barriers to digital commerce, including banning data detection requirements while complying with data protection rules.

Public procurement markets in the UK are open to EU candidates based in the UK, on ​​an equal footing and vice versa, also for small contracts. Efficient transaction through interconnections thanks to the multi-site shopping area link system and guarantees for the security of the energy supply Cooperation Offshore energy cooperation in the North Sea.

There will be no implementation of the Paris Agreement commitments and no regression on climate change and coal pricing, with EU connectivity and coal pricing regimes in the UK.

A special agreement for its safe and peaceful uses, nuclear energy allows the transfer of nuclear material and technology. The non-discrimination clause ensures equal treatment of EU citizens for short-term visas.

Coordination of certain social security benefits (old-age and survivors' pensions, pre-retirement, health care, maternity / paternity, work accidents) facilitating work abroad and we do not lose rights.

‣ Unlimited point-to-point traffic between EU and UK airports (3rd and 4th freedom)

‣ Member States can agree on bilateral 5th freedom with UK for non-EU cargo (eg Paris-London-New York). Cooperation on aviation safety, security and air traffic management

‣ Provisions on land handling and slots (non-discriminatory and accessible) and passenger rights, at the top of the horizontal levels of competition environment

Unrestricted point-to-point access for carriers transfers cargo between the EU and the UK and full transit rights between each other's territories

‣ Right to perform up to two additional functions in the territory of another Party (of which at most one cabotage for carriers in the United Kingdom)

‣ Provisions on working conditions, road safety and fair competition, above horizontal competition conditions, environmental clauses, social issues and competition

The new arrangements ensure the sustainable management of common fish stocks in the EU and UK waters, respecting the rights of both parties and obligations as independent coastal States with a transitional period of 5.5 years during which mutual access rights to fish between them the waters remain unchanged, with gradual transport.

EU quotas in the UK, taking into account the need to conserve marine resources and the activities of fishing communities based on these waters.

There will be ongoing cooperation between the UK, Europol & Eurojust and arrangements for strong cooperation between the UK national police and judicial authorities and the Member States, including extradition.

‣ Mechanisms for express passenger exchanges, Name registration data (PNR), DNA, fingerprint and vehicle registration data (Prüm) and criminal information recording

‣ Cooperation on cross-border health security threats and exchanges of classified information

‣ The United Kingdom participates in 5 EU programs openly involving third countries (subject to its financial contribution):

• Horizon Europe (research and innovation)

•Euratom Research and Training Program

• ITER (fusion test installation)

• Copernicus (Earth monitoring system)

• Access to satellite monitoring and EU monitoring (SST) services

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