The European Parliament has recentely ratified the long-awaited post-Brexit trade deal between the European Union (EU) and the United Kingdom (UK), dubbed as the Trade and Cooperation Agreement (TCA). Distinctively, this key agreement was signed in December 2020 and it encompasses not only the EU and UK, but also the European Atomic Energy Community (Euratom). This significant step was made nearly five years after the UK took a historic decision to withdraw from the EU, a choice that had already been backed by the UK Parliament.
The Basics of the Trade and Cooperation Agreement (TCA)
The TCA was provisionally put into effect in January 2020 with an objective to reduce trade disruptions between the UK and EU, and is expected to remain valid until 30th April 2021. Thanks to the European Parliament’s ratification, this deal will guarantee the continuous flow of trade between the two economies.
Key Provisions of the Deal
This trade agreement is composed of several crucial elements such as maintaining a level playing field, setting governance rules, defining fishing rights, and establishing a framework for law enforcement collaborations.
A level playing field signifies that the UK will have to adhere to similar rules and regulations as the EU when trading with the latter’s single market. This is essential to ensure fair competition and prevent the UK from gaining undue advantage over other EU businesses. The governance rules are designed to enforce the terms of the agreement and impose penalties if either party violates the mutually approved deal.
Moreover, the agreement also grants free access to EU fleets to fish within the UK waters, up to six miles off the shore for a five-year transition period. Upon the completion of this period, normal arrangements will resume and the UK will regain full control over its waters.
Lastly, a law enforcement framework has been set up to facilitate coordination between UK and EU policing agencies in the future. Other key aspects of international trade, such as intellectual property protections and road transportation provisions, have also been addressed.
Limitations of the Treaty
While the deal covers many areas, it has left certain sectors of the UK economy, such as legal and financial services, unaddressed. At present, companies based in the UK that offer these services will face the same restrictions as other firms located outside the EU.
EU–UK Relations
The United Kingdom is a northwestern European island nation composed of England, Scotland, Wales, and Northern Ireland. This country has a unique relationship with the EU, dating back to the establishment of the European Communities (predecessor of the EU) in 1957. The UK was part of the EU since 1973 until it decided to terminate its membership—becoming the first country to do so—on 31st January 2020 following a 2016 referendum.
The Northern Ireland Issue
A specific issue that has been a major concern during the Brexit process relates to Northern Ireland. Geographically, Northern Ireland is part of Ireland but politically, it’s part of the UK. Since it shares a border with an EU nation—Ireland—it emerged as a significant factor in Brexit negotiations.
Versatility of the open Irish border is significant for maintaining peace and allowing residents of Northern Ireland to identify with both Ireland and the UK. However, the UK government’s insistence on a “hard Brexit” implied the need to introduce new barriers and checks on trade. Recognizing that a border could not be established in Ireland due to its potential impact on the peace process, the alternative was to metaphorically establish it in the Irish Sea, between Northern Ireland and the rest of the UK, which has raised concerns among British unionists regarding Northern Ireland’s status in the UK and calls for Irish reunification.