After months of talks and almost at the last minute, the UK and the European Union reached an interim free trade agreement on Thursday, which
should avoid New Year's chaos for cross-border traders and provide some certainty for businesses.
after years of Brexit turmoil.
With little more than a week left before the separation, the British government said that "the deal is done" and that "the negotiations had achieved
the first free trade agreement based on zero tariffs and zero quotas that has been reached with the European Union. ”
.
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European officials also confirmed that the deal was reached.
"We can finally leave Brexit behind and the European Union can continue to move forward,"
said Ursula von der Leyen, the president of the European Commission after announcing the agreement that will apply from January 1 next.
"It is fair, a balanced agreement and it is the correct and responsible thing for both sides," said the official.
The agreement guarantees that the two parties can continue to trade goods without tariffs or quotas.
But despite the breakthrough, key aspects of the future relationship between the 27-nation bloc and its former member remain uncertain.
The appointed time has arrived for the United Kingdom to leave the European Union
Jan. 31, 202000: 32
The British and European parliaments must vote on the deal, although that may not happen until the UK leaves the EU on January 1.
[British Parliament approves the first stage of the Brexit agreement by a large majority]
Months of tense and often irritating negotiations gradually narrowed the differences between the two parties to three key issues:
rules of fair competition, mechanisms for resolving future disputes, and fishing rights.
The rights of European Union vessels to trawling in British waters remained the last hurdle before it was resolved.
Boris Johnson, the British prime minister, had insisted that the UK would "prosper tremendously" even if no deal was reached and that his nation would have to trade with the EU under the terms of the World Trade Organization.
But his government has acknowledged that a chaotic exit was likely to
lead to stagnation in British ports, temporary shortages of some goods and price increases for staple foods
.
For a long time, the EU feared that the UK would undermine the bloc's social, environmental and state aid rules after Brexit, becoming a rival with lax regulations.
British authorities deny they have plans to institute weaker standards,
but have also said that having to follow EU regulations would undermine their sovereignty.
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Finally, a compromise was reached on the delicate issue of “level playing field”.
The issue of fishing - of great symbolic value despite not being of great economic importance - was the last stumbling block as EU maritime nations try to retain access to UK waters where they have long fished, but the government Britain insists that it should exercise control as an "independent coastal state."
The huge disputes on the fisheries issue were gradually closed during weeks of intense negotiations in Brussels, even as Johnson continued to insist that a no-deal exit was a likely and satisfactory outcome.
"Relief" for the business sector
The director of the influential Confederation of British Industry (CBI, for its acronym in English), Tony Danker, admitted Thursday that the agreement is a "great relief" for companies in difficult times.
“
This comes as a great relief to British business
at a time when resistance is at its lowest.
Since it has been slow to arrive, it is vital that both parties take measures so that trade and services flow while companies adjust to the change, "added the director in a statement.
For her part, the CEO of the British Retail Council, Helen Dickinson, expressed her satisfaction with the "announcement of a free trade agreement between the United Kingdom and the EU", reached seven days before the end of the transition period between London and Brussels.
The director of the CBI said that businesses will study "immediately" the details of the pact to "understand the impact on companies and customers, but immediate guidelines from the Government are needed for all sectors."
"With an agreement secured, we can now start a new chapter on solid ground
,
" he
said.
The business sector, already severely punished by the COVID-19 pandemic, had been asking for months for certainty about what the future commercial relationship with the European bloc would be.
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Dec. 19, 202000: 33
The real change begins
Four and a half years have passed since the British voted between 52% and 48% to leave the EU and, according to the motto of those who support Brexit, "regain control" of the borders and the laws of the United Kingdom.
More than three years of disputes passed before the nation abandoned the bloc's political structures on January 31.
Unraveling the economies that were closely intertwined, as part of the EU's single market for goods and services, took longer.
The UK has remained part of the single market and customs union for an 11-month transition period after Brexit.
As a result, many people will have noticed few impacts.
On January 1, the breakup will start to feel real.
The new year will bring big changes, even with a trade deal.
Goods and people will no longer be able to move freely between the UK and its continental neighbors without border restrictions
.
EU citizens will no longer be able to live and work in the UK without visas, although that does not apply to the more than three million who already do, and the British can no longer automatically work or retire in EU nations. .
Exporters and importers face customs declarations, merchandise controls and other formalities.
The UK-EU border is already recovering from new restrictions on travelers from Britain to France and other European countries due to a new variant of the coronavirus spreading across London and southern England.
Thousands of trucks were stuck in traffic jams near Dover on Wednesday, waiting for their drivers to be tested for viruses
so they could enter the Eurotunnel into France.
British supermarkets say the backlog will take days to resolve and there could be a shortage of some fresh produce during the Christmas season.
Despite the deal, there are still unanswered questions on big issues such as
security cooperation between the UK and the bloc
and access to the European market for Britain's huge financial services sector.
With information from AP, NBC News and The New York Times