EU–UK Trade and Cooperation Agreement

Trade and cooperation agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part
European Union (EU) and Euratom   United Kingdom (UK)
Type	Trade and cooperation agreement
Context	Withdrawal of the UK from the EU on 31 January 2020
Drafted	24 December 2020
Signed	30 December 2020
Location	Brussels and London
Ratified	30 April 2021[1]
Effective	1 May 2021[2]
Condition	Ratification by both parties (Article 783)
Provisional application	1 January 2021 to 30 April 2021
Negotiators	Michel Barnier David Frost
Parties	European Union and Euratom United Kingdom
Languages	all official EU languages

The EU–UK Trade and Cooperation Agreement (TCA) is a free trade agreement signed on 30 December 2020, between the European Union (EU), the European Atomic Energy Community (Euratom), and the United Kingdom (UK). It provisionally applied^[3][4] from 1 January 2021, when the Brexit transition period ended,^[5] before formally entering into force on 1 May 2021, after the ratification processes on both sides were completed: the UK Parliament ratified on 30 December 2020;^[6] the European Parliament and the Council of the European Union ratified in late April 2021.^[2]

The agreement, which governs the relationship between the EU and the UK after Brexit, was concluded after eight months of negotiations.^[7] It provides for free trade in goods and limited mutual market access in services, as well as for cooperation mechanisms in a range of policy areas, transitional provisions about EU access to UK fisheries, and UK participation in some EU programmes. Compared to the UK's previous status as an EU member state, on 1 January 2021 the following ended as they are not incorporated in the TCA or the Brexit withdrawal agreement: free movement of persons between the parties; UK membership in the European Single Market and Customs Union; UK participation in most EU programmes; part of EU–UK law enforcement and security cooperation such as the access to real time crime data; defense and foreign policy cooperation; and the authority of the European Court of Justice in dispute settlement (except with respect to the Northern Ireland Protocol^[8]).

In addition, two other separate treaties were negotiated, signed, and ratified in parallel around the same time by the UK and the EU/Euratom: an agreement on exchange of classified information^[9] and another on cooperation in the field of nuclear energy.^[10]

Part of a series of articles on
Brexit
Withdrawal of the United Kingdom from the European Union Glossary of terms
Background European Communities Act 1975 EC membership referendum UK rebate Bruges speech No. No. No. Maastricht Rebels Black Wednesday European Union (Amendment) Act 2008 European Union Act 2011 UK opt-outs from EU legislation Euroscepticism in the UK UK opinion polling on EU membership Campaigns for a referendum People's Pledge Labour for a Referendum Bloomberg speech In or Out 2013–14 EU (Referendum) Bill (unsuccessful) 2014 European Parliament election 2014 UK Parliament by-elections Clacton Heywood and Middleton Rochester and Strood 2015 UK general election 2015–16 EU membership renegotiation
2016 EU referendum EU Referendum Act (Gibraltar) EU Referendum (Date of Referendum etc.) Regulations EU Referendum (Conduct) Regulations Issues Endorsements Opinion polling UK Government pro-EU leaflet Campaigns Leave campaigns Vote Leave (official) Business for Britain Conservatives for Britain BeLeave Leave.EU Bpoplive The Freedom Association Better Off Out Grassroots Out Labour Leave Get Britain Out Bruges Group Campaign for an Independent Britain Brexit: The Movie Remain campaigns Britain Stronger in Europe (official) Labour In for Britain European Movement UK Britain in Europe British Influence Business for New Europe Nucleus Project Fear Outcome Results Causes for result International reactions Immediate aftermath 2016 Conservative Party election 2016 Labour Party election 2016 UKIP election Department for Exiting the EU Department for International Trade Allegations of unlawful campaigning Alleged Russian interference
Notice of withdrawal Article 50 process Miller case (Article 50) EU (Notification of Withdrawal) Act 2017 Brexit plan Repeal Bill plan 2017 UK general election
Negotiations Negotiation positions EU negotiation mandate Chequers agreement Timeline: 2017, 2018, 2019 2019 European Parliament election 2019 UK general election
Withdrawal agreement Brexit divorce bill Fish for finance Irish backstop No-deal Brexit Northern Ireland Protocol Northern Ireland Protocol Bill Windsor Framework
Legislation Withdrawal Act 2018 (Gibraltar) Nuclear Safeguards Act 2018 Cooper–Letwin Act Benn Act 2019 suspension of rebel Conservative MPs Public Vote Bill (not passed) Terms of Withdrawal Bills (not passed) Scottish EU Continuity Bill (blocked) Withdrawal Agreement Act (Gibraltar) Scottish EU Continuity Act Internal Market Act EU (Future Relationship) Act Retained EU Law (Revocation and Reform) Bill
Impact Impact on the Irish border Good Friday Agreement Impact on the EU Economic effects Effects on Gibraltar Scientific cooperation Effects on popular culture Retained EU law 2021 Jersey dispute
EU–UK relations Relations pre- and post-Brexit EU–UK trade negotiation EU–UK Trade and Cooperation Agreement (TCA) Partnership Council Partnership Assembly Relations with EU member states Austria Belgium Bulgaria Croatia Cyprus Akrotiri and Dhekelia Czech Republic Denmark Estonia France Germany Greece Hungary Ireland Ireland–UK border British–Irish Council North/South Ministerial Council Italy Lithuania Malta Netherlands Poland Portugal Romania Slovakia Spain Status of Gibraltar Gibraltar–Spain border Sweden Conjectured EEA membership
Opposition Post-referendum opinion polling New initiatives Change Britain More United Open Britain The New European Unite to Remain Led By Donkeys Revoke Article 50 petition Postcards from the 48% Proposed second Scottish independence referendum Calls for a second referendum People's Vote Britain for Europe European Movement UK For our Future's Sake Healthier IN the EU InFacts Open Britain Our Future Our Choice Scientists for EU Other organisations Best for Britain Bollocks to Brexit Change UK Liberal Democrats Right to Vote
Timeline Bloomberg speech Jan 2013 Referendum Bill blocked Jan 2014 European Parliament election May 2014 2015 general election May 2015 Renegotiation begins Jun 2015 Referendum Act passed Dec 2015 Renegotiation concluded Feb 2016 Referendum held Jun 2016 David Cameron resigns as PM Jul 2016 Theresa May becomes PM Jul 2016 Article 50 judgement Jan 2017 Brexit plan presented Feb 2017 Notification Act passed Mar 2017 Article 50 invoked Mar 2017 Repeal Bill plan presented Mar 2017 2017 general election Jun 2017 Brexit negotiations begin Jun 2017 Withdrawal Act passed Jun 2018 Chequers plan presented Jul 2018 Withdrawal agreement plan presented July 2018 Withdrawal agreement released Nov 2018 Scottish Continuity Bill blocked Dec 2018 Meaningful votes Jan–Mar 2019 Brexit delayed until 12 April Mar 2019 Cooper–Letwin Act passed Apr 2019 Brexit delayed until 31 October Apr 2019 European Parliament election May 2019 Theresa May resigns as PM Jul 2019 Boris Johnson becomes PM Jul 2019 Prorogation and annulment Aug–Sep 2019 Benn Act passed Sep 2019 Withdrawal agreement revised Oct 2019 Brexit delayed until 31 January Oct 2019 2019 general election Dec 2019 Agreement Act passed Jan 2020 UK leaves the European Union Jan 2020 Implementation period begins Jan 2020 UK–EU trade deal agreed Dec 2020 Future Relationship Act passed Dec 2020 Scottish Continuity Act passed Dec 2020 Implementation period ends Dec 2020 New EU–UK relationship begins Jan 2021 UK–EU trade deal ratified Apr 2021 Windsor Framework released Feb 2023 Windsor framework adopted Mar 2023
EU portal UK portal
v t e

The UK became a member of the European Communities in 1973, which later became the EU and Euratom.^[11] Since then, the UK contributed to making and was subject to EU law, whose application was governed by the European Court of Justice.

After the UK decided in a 2016 referendum to leave the EU ("Brexit"), it did so on 31 January 2020.^[12] Until 31 December 2020, a transition period applied, in which the UK was still considered for most matters to be part of the EU. After the first negotiations between the UK and the EU led to the Brexit withdrawal agreement that implemented the UK's withdrawal,^[13] negotiations commenced for an agreement to govern trade and other relations between the EU and the UK after the end of the transition period.

The UK government led by Boris Johnson pursued a desire to trade freely with the EU while being subject to as few EU rules as possible, and especially not to the jurisdiction of the European Court of Justice.^[14] For its part, the EU insisted that the price for UK access to the European Single Market was compliance with EU subsidies, social, environmental and other regulations to avoid distorting competition in the single market.^[14] Another major point of contention was fisheries. Part of the impetus for Brexit was the British desire to regain full control over their fishing waters, whereas EU coastal states demanded to retain all or most of the fishing rights they enjoyed under the EU's Common Fisheries Policy.^[14]

The trade agreement, negotiated under increasing time pressure due to the end of the transition period on 31 December 2020, had to address all of these issues.^[15] Formal trade negotiations, in which Michel Barnier represented the EU and David Frost represented the UK, began on 31 March 2020. They were originally due to be concluded by the end of October 2020.^[16] However, negotiations continued^[17] and formally ended on 24 December 2020 when an agreement was reached in principle after ten negotiating rounds.

After approval by the Council of the European Union on 29 December,^[3] the President of the European Council Charles Michel and the President of the European Commission Ursula von der Leyen signed the TCA on 30 December 2020 on behalf of the EU.^[18] The agreement was then flown to London and signed for the UK by the Prime Minister, Boris Johnson.^[18]

The internal procedures of the UK and EU/Euratom had to be followed for ratification after signature. For the EU, this meant a decision by the Council of the European Union after receiving the consent of the European Parliament.^[19] As the TCA was not treated as a mixed agreement, no national ratification procedures were needed in the member states.^[20][21][22]

For the UK, ratification is a royal prerogative, exercised in effect by the Government.^{[citation needed]} For the agreement to have effect in UK domestic law and to enable the government to enter into the agreement, the enactment of the European Union (Future Relationship) Bill was required.^[23] The bill was introduced in Parliament on 30 December 2020 and provides for implementation of the TCA.^[24] The same day, the bill passed the House of Commons with 521 votes to 73, and was approved by the House of Lords. It became the European Union (Future Relationship) Act 2020 when it received royal assent on 31 December 2020.^[25]

On 4 March 2021, the European Parliament postponed its consent decision, which had been planned for 25 March. The EU accused the UK of proposing for a second time to break international law, after UK ministers announced the unilateral extension of the grace period on certain checks on trade from Great Britain to Northern Ireland.^[26] On 27 April, the European Parliament gave its consent to the agreement after a plenary vote (660 in favour, 5 against, 32 abstentions).^[27] The Council of the European Union approved the agreement by a decision on 29 April using a written procedure.^[2]

Agreement on the draft text of the TCA was only reached in late December 2020, while the parties planned provisional application on 1 January 2021. The parties therefore signed the draft text, of which the articles had not been continuously numbered and which was subject to legal revision before it could enter into force. The draft agreement was replaced by the definitive version of the agreement through an exchange of notes on 21 April 2021, and this version applies retroactively (ab initio) from 1 January 2021.^[28]

The agreement was provisionally applied from 1 January 2021 until its entry into force on 1 May 2021.^[4] The ultimate date for the end of the provisional application was extended from 28 February to 30 April 2021.^{[29][30][31][32]} The Council decision on the signing included the approval of provisional application, provided the UK also decided to provisionally apply the document.^[3][33] The agreement entered into force on the first day of the month after ratification by both parties (Article 783; Article FINPROV.11 in the draft), namely 1 May 2021.^[32][2]

The agreement applies to the territory of the UK and to the EU. It does not apply to Gibraltar, which was also part of the EU, but for which a separate negotiation is conducted between the UK, Spain and the EU.^[33] The agreement applies to the Isle of Man, Bailiwick of Guernsey and Bailiwick of Jersey (which gave their consent^[34][35]) with regard to trade in goods and fishing.^[36] With regard to Northern Ireland, the provisions on trade in goods do not apply, as those (as well as provisions on application of EU law in that area and involvement of the European Court of Justice)^[8] are governed by a protocol to the Brexit withdrawal agreement.^[36]

The 1,246-page agreement (including annexes) covers its general objectives and framework with detailed provisions for fisheries, social security, trade, transport, visas; and cooperation in judicial, law enforcement, and security matters. Other provisions include continued participation in community programmes and mechanisms for dispute resolution.^[32]

According to summaries of the agreement published by the European Commission and the UK government, the agreement provides for the following or has the following effects on the EU–UK relationship compared to when the UK was an EU member state. For Northern Ireland other arrangements may be in place through the Ireland/Northern Ireland Protocol.

Trade in goods between the EU and UK shall not be subject to any tariffs or quotas. Traders can self-certify compliance with agreed rules of origin. However, as a result of the UK leaving the EU customs area, customs formalities are required between the two parties, and VAT and certain other duties apply upon import.^[37] There are provisions intended to limit technical barriers to trade (TBT), building on the WTO TBT Agreement.^[38]

Building on WTO rules,^[38] each party is to treat service providers of the other party no less favourably than its own.^[37] There are rules to facilitate the cross-border provision of services in certain fields, such as digital services (including as regards data protection rules), public procurement (extending the coverage of the WTO GPA somewhat^[38]), business trips and secondments of highly qualified employees.^[37] But there is no longer general access to each other's services markets;^[37] for example, financial services providers no longer have access to customers via "passporting".^[39] Professional qualifications are no longer automatically mutually recognized.^[37]

With respect to energy, there is to be regulatory and technical cooperation,^[38] as well as a reconfirmation of the Paris Agreement climate goals.^[37] But the UK is no longer part of the EU energy market and emissions trading scheme.^[37] The UK has concluded a separate agreement with Euratom on peaceful cooperation on nuclear technology,^[40] which has not entered into force.

While both parties remain free to shape their public policy in the fields of subsidies, labour and social policy, or climate and environment policy, the agreement provides for "level playing field" principles and mechanisms that aim to prevent a distortion of trade as a result of measures in these fields. In particular, each party may take countermeasures (subject to arbitration) against damaging measures by the other party.^[38]

Certain existing intellectual property provisions exceeding TRIPS commitments (including a 70-year copyright term) are to be preserved in the EU and the UK.^[38] There are agreed rules on geographical indications existing before Brexit which are confirmed in the TCA (Article IP.57),^[32] but not for Indications registered afterwards,^[38][41] except for Northern Ireland.^[42]

There is no free movement of persons between the EU and the UK. Visitors planning stays of more than 90 days in any 180-day period need a visa;^[37] those planning any work other than routine business meetings and conferences need an appropriate visa.^[43] There is coordination of some social security benefits.^[37]

In aviation, EU and UK carriers continue to enjoy access to point-to-point traffic between EU and UK airports (third and fourth freedoms of the air). But they no longer have access to each other's aviation markets otherwise, including with respect to domestic flights or flights connecting to other countries. The UK is free to negotiate "fifth freedom traffic rights" for cargo flights (e.g. the London–Paris–Barcelona route for a UK carrier) with the member states of the EU individually.^[44][32][33] There is cooperation on aviation safety, but the UK no longer participates in EASA.^[37]

Likewise, in road transport, mutual market access for passenger transport is limited to point-to-point crossborder transports, whereas for the transport of goods up to two extra movements (cabotage) in the other party's territory are permitted.^[37]

The UK leaves the EU Common Fisheries Policy.^[38][37] During a transitional period of 5+1⁄2 years, EU fishing quotas in UK waters will gradually be reduced to 75% of their pre-Brexit extent.^[14][37] The shares of fish the parties are allowed to catch in each other's waters will then be negotiated annually.^[45]

In the field of security, the UK no longer participates in the EU security agencies and no longer has access to the Schengen Information System SIS II database. But UK cooperation continues with Europol and Eurojust, and there are mechanisms for the exchange of certain security-relevant data, such as passenger name records, Prüm Convention data (DNA, fingerprints, vehicle registrations) and criminal records.^[37]

The UK no longer participates in EU development funding programmes. It continues to participate in five technical EU programmes:

• Horizon Europe
• Euratom research and training
• ITER
• Copernicus
• Satellite surveillance (partly).^[37]

One of the programmes that the UK does not participate in, is the Erasmus student exchange programme.^[46]

The agreement establishes a Partnership Council, made up of EU and UK representatives. Operating by mutual consent, it is authorized to administer the agreement, resolve disputes through negotiation and modify certain parts of the agreement if necessary.^[38] The Partnership Council also will take this role in supplementing agreements between the EU and the UK, unless agreed otherwise (Articles COMPROV 2 and Inst 1.2)^[32]

When disagreements between the parties cannot be resolved through consultation, either party may submit the dispute to an independent arbitration panel. If that panel finds that one party has breached its obligations, the other party may suspend (part of) its own obligations under the agreement. The agreement excludes any role of UK or EU courts, including the European Court of Justice, in dispute settlement between the EU and the UK.^[38]

The President of the European Commission, Ursula von der Leyen, called the TCA "a fair and balanced agreement" that would allow Europe "to leave Brexit behind us and look to the future."^[47] The President of the European Council, Charles Michel, said that the TCA "fully protects the fundamental interests of the European Union and creates stability and predictability for citizens and companies."^[18] The former Taoiseach of Ireland, John Bruton, believes that the agreement has given the UK more sovereignty over the island of Britain, but this gain comes at the cost of losing a considerable weight of the UK's sovereignty over Northern Ireland.^[48]

Prime Minister Boris Johnson said that the TCA would allow the UK "to take back control of our laws, borders, money, trade and fisheries" and would change the basis of the EU–UK relationship "from EU law to free trade and friendly cooperation".^[38] The Leader of the Opposition, Sir Keir Starmer, said that his Labour Party would support the TCA because the alternative would be a "no deal" Brexit, but that his party would seek additional labour and environmental protections in Parliament. Nonetheless, many in his party opposed the agreement.^[49] The Scottish National Party opposed the TCA because of the economic damage it said leaving the single market would inflict on Scotland.^[50] All other opposition parties opposed the TCA.^[51]

Among pro-Brexit interest groups, the Eurosceptic Conservative MPs of the European Research Group^[52][53] and the Brexit Party leader Nigel Farage^[54][55] endorsed the TCA, but the Bow Group wrote that it would not adequately restore UK sovereignty.^[56] The British fishing industry was disappointed that the agreement did not more significantly reduce EU access to British waters.^[57][58][59]

A YouGov survey of 29–30 December 2020 reported that 57% of respondents wanted the UK Parliament to accept the TCA and 9% to oppose it, with Conservative (78%) and Leave supporters (69%) more in favour than others.^[60] 17% of respondents considered the TCA to be a good deal, 21% a bad one, 31% neither, and 31% were unsure.^[60]

• 2016 United Kingdom European Union membership referendum
• EU–UK Partnership Council
• European Union (Withdrawal Agreement) Act 2020
• European Union (Future Relationship) Act 2020
• Free trade agreements of the European Union
• Free trade agreements of the United Kingdom
• Post-Brexit United Kingdom relations with the European Union
• United Kingdom–European Union relations

Wikisource has original text related to this article:

UK notification on the EU–UK Trade and Cooperation Agreement

• Trade and Cooperation Agreement:
  • UK/EU and EAEC: Trade and Cooperation Agreement [TS No.8/2021]
  • EUR-Lex – L:2021:149:TOC – EN – EUR-Lex
  • Text in all official EU languages provided by the Council of the European Union
  • provisional English text, including annexes and protocols and declarations.
• Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the European Atomic Energy Community for Cooperation on the Safe and Peaceful Uses of Nuclear Energy in the Official Journal of the European Union, L 150, 30 April 2021 – UK/EAEC: Agreement for Cooperation on the Safe and Peaceful uses of Nuclear Energy [TS No.10/2021] – Draft: Nuclear Cooperation Agreement
• UK/EU: Agreement concerning Security Procedures for Exchanging and Protecting Classified Information [TS No.9/2021] – Draft: Agreement on Security Procedures for Exchanging and Protecting Classified Information.
• European Commission publication: EU–UK Trade and Cooperation Agreement – Overview of consequences and benefits (24 December 2020)
• European Commission publication: EU–UK Trade and Cooperation Agreement – Infographic (24 December 2020)
• United Kingdom government: Summary Explainer of the TCA (24 December 2020)
• European Union initial draft: EU – UK CFTA (Draft) (20 March 2020)
• United Kingdom initial draft: UK – EU CFTA (Draft) (undated, public release 19 May 2020)
• UK Draft European Union (Future Relationship) Bill 29 December 2020