The British agreed dramatically on the 24th (local time) to negotiate to move away from the European Union from January 1st of next year. On this day, the two sides concluded the Brexit (Brexit, UK’s withdrawal from the EU) negotiations, and a period was stamped in the 47 years of cohabitation following the European Economic Community (EEC), the predecessor of the EU in 1973.
The two sides settled negotiations on future relations, including the Free Trade Agreement, about a week before the deadline for negotiations at the end of the year. As a result, concerns about the’hard landing of Brexit’ that the UK is breaking up with the EU without any agreement and the uncertainty associated with it have also disappeared.
In a statement that day, the British government said, “This agreement has fulfilled the promises to the people in the 2016 (Brexit) referendum and (last year) general elections.” “The UK will regain control of finance, borders, laws, commerce, and waters. I said.
“This agreement means that the UK will have full political and economic independence from January 1, 2021.”
British Prime Minister Boris Johnson said, “We will be friends, allies and supporters of Europe and really the best mayors. Even though we have left the EU, the UK will be culturally, emotionally, historically, strategically and geopolitical with Europe.” said.
At a press conference held on the same day after an agreement was reached by the head of the EU administration, Urzula Ponderrayen, “We finally reached an agreement” and said, “It was a long and winding road, but we had a good agreement at the end.”
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British Prime Minister Boris Johnson cheers on the news of the conclusion of the Brexit future relations negotiations at the residence of the Prime Minister at 10 Downing Street in London on the 24th (local time). [사진 제공 = 영국 총리실] As the European Union (EU) and the UK signed a dramatic conclusion of the Brexit negotiations on the 24th (local time) on the 24th (local time), the two sides will undergo many changes from January 1 of next year. The draft’Trade and Cooperation Agreement’ agreed upon when the two sides concluded future relations negotiations, including the Free Trade Agreement, encompasses various sectors such as trade in goods and services, state subsidies, and fishing.
However, this agreement did not address specific details related to financial services, foreign policy, foreign security, and defense cooperation.
First of all, in the field of commodity trade, the two sides agreed to maintain tariff-free trade for commodities after Brexit. For products subject to no tariffs, it is also decided to continue the quota-free trade, which can be traded without a quantity limit.
However, as the UK withdrew from the EU single market and customs alliance, borders for customs clearance and regulation are established in the trade of goods on both sides. As a result, customs clearance and quarantine procedures are applied when moving goods, making trade in goods more difficult. The EU Commission explained, “It is inferior compared to market access in a single market, but this agreement will provide sustainable connectivity in air, road, rail and sea.”
The freedom of movement between the UK and the EU disappears. In the future, British citizens will need a visa to stay in EU member states for more than 90 days. This means that the right of the British to work, study, do business or live like a citizen of that country in an EU member state.
The free movement of citizens of EU member states in the UK is also over.
The fishery issue, which had been a stumbling block until the end of the negotiations, was made difficult by the British concessions, but controversy remains. The two sides agreed to cut the EU catch quota in UK waters by 25% over the next five years and six months. EU fishing vessels have agreed to negotiate annually on access to British waters. Initially, the UK insisted on reducing the catch quota by 60-80% over three years.
However, many fishing zones in northwest Europe, which have long been operating in British waters, are dissatisfied with the agreement. It cannot be ruled out that the UK will completely block EU vessels from accessing the waters after 5 years and 6 months. Currently, the amount of catch by EU fishing boats in the UK waters every year is 650 million euros (about 875 billion won). After the announcement of the agreement, Michelle Barnier, the head of the EU in the bilateral future relations negotiations, said that the EU will protect the interests of fisheries workers in member countries.
In addition to the fishery issue, an agreement was reached through concessions by the EU on the environment of fair competition in which opinions of the two sides were mixed until the end of the negotiations. In the agreement, both sides agreed to establish a common legally binding principle regarding state subsidies. Initially, the UK has revealed its policy to strengthen its competitiveness by providing subsidies or preferential treatment to domestic companies after Brexit. In response, the EU has argued that even after Brexit, the UK should guarantee a fair competitive environment in relation to state subsidies, taxes, the environment, and labor rights to prevent UK companies from gaining unfair profits compared to EU companies.
The two sides decided to discuss and prepare a common principle that can be enforced in courts soon, and illegal subsidies can be recovered. In addition, after Brexit, it was decided to establish a’Rebalancing Mechanism’ that includes an independent arbitration procedure in preparation for the situation in which regulations on both sides change in areas such as environment and labor rights. The side affected by the disadvantage may impose tariffs to restore fair competition.
Unlike commodity trade, the details of the financial services sector in which the UK is strong were not addressed in detail in the agreement. The two sides decided to negotiate a separate regulation on financial services based on the Memorandum of Understanding (MOU). In order for the UK to continue its function as a global financial hub, it should be determined that the effectiveness of financial regulation and supervision in the UK, which is a non-member country of the EU, meets EU standards. This is because UK financial companies can operate in the EU without separate authorization. However, the agreement on the day did not include EU decisions on regulatory equivalence.
Cooperation between the two judicial authorities and the police continues even with the UK’s withdrawal from the European Organization for Legal Cooperation (Eurojust) and the European Police Agency (Europol). The UK can continue to use its EU regional database to share police alerts of disappearances, thefts, and more. Information such as fingerprints and DNA databases related to terrorism will also be used jointly.
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