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| British Prime Minister Boris Johnson is announcing the conclusion of negotiations on future relations with the European Union on the 24th. © AFP=News1 |
The UK and the European Union (EU) concluded negotiations on future relations such as a trade agreement on the 24th (local time), one day before Christmas.
According to Reuters and AFP, the UK and the EU have reached an agreement on the same day after nine months of negotiations on future relations.
As the negotiations were settled before the end of the transition period on December 31, the two sides could alleviate concerns about economic collapse due to’no deal’.
As soon as January 1st, the UK exits the EU single market and customs union and becomes a completely independent state.
It has also restored control over finance, borders, law, trade, and waters, and has the right to freely sign trade agreements with third countries such as the United States.
In addition, the UK and the EU agreed to conclude a free trade agreement based on the principle of no tariffs and no quotas.
British Prime Minister Boris Johnson said the EU would be the’best market’ for the UK and would make the most of its opportunity as an independent trading partner. The volume of bilateral trade in 2019 amounted to £680 billion (1003 trillion won).
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| European Union Commissioner Ursula Pon der Raien announces the conclusion of negotiations on future relations with the UK on the 24th. © AFP=News1 |
The tariff-free trade continues, but there are also cumbersome procedures. British companies that do business with the EU are required to complete additional customs declarations totaling 215 million units each year.
The Wall Street Journal (WSJ) noted that companies on both sides must incur more than $900 billion in costs to adapt to the new trade rules.
In addition, it is predicted that trade in services will also decrease as the movement of labor force between the two sides is restricted.
The issue of fishing rights, which became an issue until the end of the negotiations, was conceded by the British.
Prime Minister Johnson said he has accepted the condition that the catches of fishing vessels from EU member states in British waters will gradually decrease by 25% over the next five and a half years. The UK initially insisted an 80% decline in three years, while the EU insisted 14 years.
The issue of’hard border’ (strict passage and customs procedures applied) in Ireland and British Northern Ireland was also finished. From January next year, Northern Ireland practically remains in the EU’s single market and customs alliance.
The agreement between the UK and the EU is over 1000 pages, including accompanying documents.
Parliamentary votes from both sides and unanimous approval of the 27 EU member states remain.