Trade negotiation between the UK and the EU

rdf:langString Trade negotiation between the UK and the EU

rdf:langString David Frost

rdf:langString Trade negotiations between the UK and the EU took place after Brexit between the United Kingdom and the European Union for a trade agreement to make trade easier than it would have been without such a deal. The deal would cover both tariff and non-tariff barriers to trade. The negotiations formally ended on 24 December 2020 with an agreement approved in principle by the UK Prime Minister (on behalf of the UK) and (on behalf the EU) the President of the European Commission. The result was the EU–UK Trade and Cooperation Agreement (TCA). During the Brexit negotiations in 2017 (of the withdrawal agreement), the two sides agreed that trade negotiation could only start after the UK's withdrawal, because such negotiations could not happen when the UK still has a veto right within the EU. For this and other reasons, a transition period after Brexit day was defined to allow those negotiations. The transition period started on 1 February 2020, in accordance with the withdrawal agreement. The transition period was scheduled to end on 31 December 2020, a deadline which could have been extended for two years, if requested by 30 June 2020. The British government declared that it would not apply for any such extension, and did not do so. In addition, it declared that the only kind of trade deal the UK is interested in, if any, is a Canadian-style trade deal. The United Kingdom left the European Single Market and European Union Customs Union from 1 January 2021. A trade deal facilitates EU–UK trade, which accounts for 49% of international UK trade. A Canadian-style trade deal offers the UK a reduction on most custom tariffs between the EU and the UK, but without eliminating VAT, customs and phytosanitary checks. The arrangements for its dominant financial services sector are of particular importance to the UK.