Published On: Thu, Dec 31st, 2020

A long awaited Brexit deal is finally Served

 

Now the fate of trade between the UK and EU from 2021 has been secured, many will be keen to see the details of the deal struck on Christmas Eve.

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There is still much that is not yet clear, but here’s what we know so far about the agreement detailing what lies ahead on 1 January 2021 when the transition period ends and the new treaty comes into effect.

TRADE

The biggest effect is that British businesses can export goods to the EU without having to pay extra charges (tariffs) or facing limits on the quantity they can sell (quotas) – worth around £668bn a year.

But there will be no more automatic recognition of qualifications for doctors, nurses, dentists, engineers and vets. Instead, they will have to seek recognition in whichever member state they go to practise in.

The deal also does not include financial services – which makes up 80% of British exports – but agreement is expected to be reached independently at a later stage using a principle called “equivalence”, in which countries have regimes that have equivalent outcomes.

The government has already announced a Temporary Permissions Regime, which allows firms to continue operating once the current passporting regime falls away for up to three years.

Level playing field

The EU feared that Britain could have an unfair advantage over member states in terms of state subsidies and standards.

Agreement was reached that the UK will not have to follow EU rules but should respect certain principles on areas such as the environment and workers’ rights.

These will be reviewed in four years.

Fishing

Having been one of the major sticking points in negotiations, both sides ended up giving some ground on fishing.

During a five-and-a-half year transition period, the amount that EU fishermen and women can catch in British waters will fall by 25% – from current levels of around half to one third.

Brussels originally demanded the transition last 14 years, while the UK had pushed for an even lower EU quota .

But Ireland’s prime minister, Micheal Martin, admitted fishing communities would be left “disappointed” at the outcome.

And Barrie Deas, head of the UK National Federation of Fishermen’s Organisations, said Mr Johnson “was willing to sacrifice fishing” and made “significant concessions” – leaving the industry “extremely disappointed”.

“We have secured increases in quota from the EU but they don’t come anywhere close to what our entitlement is in international law,” he added.

Sources: AriseNews and Aljzaeera

 

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