The EU-UK Free Trade Agreement: Understanding the Full Text
The EU-UK Free Trade Agreement (FTA) was finally agreed upon on December 24, 2020, just a week before the end of the transition period after the UK left the European Union (EU) on January 31, 2020. This agreement marks the end of more than four years of negotiations between the UK and the EU since the 2016 Brexit referendum.
The FTA was signed as a means of ensuring a smooth trade relationship between the two entities and was seen as a way of reducing disruptions to UK and EU businesses, which could have potentially caused market instability and economic hardship.
The full text of the EU-UK FTA is available online and runs to over 1,000 pages. This article aims to provide an overview of the FTA`s key provisions and how they impact UK and EU businesses.
Tariff-Free and Quota-Free Trade
The FTA ensures tariff-free and quota-free trade between the UK and the EU, which removes the need for UK and EU companies to pay tariffs or quotas on goods traded between the two entities. This provision means that UK and EU businesses can continue to trade without any barriers, which will save them billions of dollars in customs duties.
Rules of Origin
The EU-UK FTA also outlines the rules of origin for goods traded between the UK and the EU. These rules determine the origin of a product and whether it qualifies for preferential treatment under the FTA. The rules of origin will enable UK and EU businesses to track the origin of the goods they trade and ensure that the customs authorities apply the correct tariffs.
Product Standards and Regulations
The FTA ensures that UK and EU businesses continue to adhere to product standards and regulations. This provision means that companies have to comply with the same regulatory standards as they did while the UK was part of the EU.
Digital Trade
The EU-UK FTA includes provisions for digital trade, which will enable UK and EU businesses to trade digitally with each other, reducing the need for physical paper documents and increasing efficiency. The agreement also includes provisions for the free flow of data, which will allow businesses to transfer data freely between the UK and the EU.
Conclusion
The EU-UK Free Trade Agreement is a comprehensive agreement that seeks to preserve the trading relationship between the UK and the EU. The FTA`s provisions covering tariff-free and quota-free trade, rules of origin, product standards and regulations, and digital trade will provide UK and EU businesses with the certainty they need to continue to trade in an environment free from unnecessary disruption. The full text of the agreement is available online, and businesses are advised to familiarize themselves with its provisions to ensure they are fully compliant.