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The EU-UK Trade Agreement: What You Need to Know

The EU-UK Trade Agreement is a historic agreement that covers the trade of goods and services between the European Union (EU) and the United Kingdom (UK). The agreement was signed on December 24, 2020, and came into force on January 1, 2021, following the UK’s departure from the EU.

The agreement governs the terms of trade in goods, services, and investment between the EU and the UK. It includes provisions on customs and trade regulations, tariffs, rules of origin, and dispute resolution mechanisms. It also covers areas such as aviation, energy, fisheries, and security.

One of the key objectives of the agreement is to ensure that there are no tariffs or quotas on goods traded between the EU and the UK. This means that goods can be traded between the two parties without any additional taxes or restrictions. However, it’s important to note that the agreement does not eliminate all non-tariff barriers, such as regulatory checks and customs procedures.

Another important aspect of the agreement is the rules of origin, which determine the origin of a product and whether it can benefit from tariff-free access to the EU or UK markets. To qualify for tariff-free access, a product must meet certain requirements, such as being produced in the EU or UK, or using a specific percentage of EU or UK materials.

In addition to goods trade, the agreement also covers services trade, which is a major part of the EU-UK economic relationship. The agreement includes provisions on market access, professional qualifications, and the recognition of certain standards and regulations.

One of the most contentious areas of the agreement has been fisheries, as the UK was keen to take back control of its waters while the EU wanted to maintain access to them. Under the agreement, the two parties have agreed on a transition period of five and a half years, during which EU fishing vessels will continue to have access to UK waters, followed by annual negotiations on fishing quotas.

Overall, the EU-UK Trade Agreement represents a significant milestone in the relationship between the EU and the UK, as it sets out the terms of their economic partnership following the UK’s departure from the EU. While it provides some clarity and certainty for businesses and consumers, there are still challenges and uncertainties that need to be addressed.