After more than four years, two negotiations leading to two agreements (that of withdrawal and that on the future relationship), the die is now cast.
They are making a lot of changes from January 1, 2021.
● Trade: zero quotas, zero tariffs
This is the heart of the agreement reached on December 24.
By giving access to its single market for all British products without tariffs or quotas, the European Union is granting a hitherto non-existent privilege.
British exports, 46% destined for Europe, will be able to continue at no extra cost.
The same goes for European exports.
Relief for the aerospace, automotive and food industries for which the UK is a prime market.
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● Return from customs
However, not everything will be as easy as before.
"There will be real changes, this is the consequence of Brexit",
insisted Michel Barnier.
Because Brexit is synonymous with the return of customs, which were abolished in 1993. Import and export declarations will be the rule for any transaction.
An administrative burden that risks driving up prices.
Not to mention the impact on the fluidity of trade when customs officers will have to, at a minimum, examine the documentation of each truck.
And that the controls will be systematic for the food industry.
"Each live animal entering the territory of the EU will have to be individually inspected by a veterinarian",
specifies a European source.
● Fair competition
Avoiding all fiscal and social dumping was one of the red lines of Europeans.
To ensure this fair competition, London and Brussels have known
“the most advanced system that exists”.
If the differences in standards (in terms of the environment, labor law, taxation) become too important on the one hand, the other could choose to impose retaliatory tariffs.
And if a European company believes it is suffering from state aid attributed to a British competitor in a dubious manner, it can apply to the courts or to the European Commission.
The City, Europe's leading financial center, will therefore no longer be able to sell its financial products across the EU after January 1.
● - 25% for fishing
The sticking point that brought the negotiations to the brink of failure, the whole battle revolved around the percentage that the European Union should cede to the United Kingdom.
European fishermen will gradually reduce their catches in British waters until they are reduced by 25%, by June 2026. Afterwards, the water division will be negotiated annually.
The risk of a British refusal will therefore exist.
But safeguards have been implemented in the text, assures the European Commission.
● The City dethroned?
No more financial passports.
Neither finance nor any service is part of the deal.
The City, Europe's leading financial center, will therefore no longer be able to sell its financial products across the EU after January 1.
The European Commission will unilaterally decide to award equivalence decisions, provided that London maintains regulations equivalent to that of the Union.
For the moment, only 2 (of the 39 existing) have been granted by Brussels.
This forces the big banks, or investment funds based in London, to open branches in the Union.
The preferred destinations are Dublin, Frankfurt, Luxembourg and Paris, but these relocations remain marginal, representing no more than 10,000 jobs.
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● New paradigm for transport
The watchwords of the Withdrawal Agreement for air, road, rail and maritime connectivity are
“continuity and sustainability”.
If chaos is avoided, it won't work like it did before.
For tourists crossing the Channel Tunnel, be careful to have an international driving license because driving licenses are no longer automatically recognized.
London-Paris flights will be maintained, but British airlines will no longer be able to carry out cabotage (stopover flights such as London-Paris-Rome).
● End of free movement
The free movement of Europeans in the UK (and vice versa) ends on January 1.
An identity card will be sufficient for the first months but, from October 2021, Europeans will have to present their passport during customs checks.
For any stay of more than three months, you will need to apply for a visa.
● Pets under the microscope
To travel to England with your dog, cat or goldfish, the European passport for pets will no longer be recognized.
However, the rules will not change immediately.
In the opposite direction, however, the procedure will be more complicated.
The owners will notably have to obtain a certificate of good health, ten days before the trip and enter the EU through certain points established in advance.
For those wishing to immigrate to the UK from January 2021, it will be necessary to face a stricter immigration policy.
They will be subject to a new points system
● A points system for European expatriates
For the 4.2 million European nationals living across the Channel before December 31, 2020, no worries.
Their rights are protected.
For those wishing to immigrate to the UK from January 2021, it will be necessary to face a stricter immigration policy.
They will be subject to a new points system in which age, English proficiency, level of studies will be taken into account to obtain a visa, valid for five years.
Added to this is the obligation to have a job offer with a salary of at least 26,500 pounds (29,500 euros), which now makes it impossible to embark on an adventure by living from odd jobs.
● Cardiff removed from the list of Erasmus destinations
End of the day for the 32,000 European students who, each year, temporarily enter British universities thanks to the Erasmus program.
For French students, their third favorite destination is crossed off the list.
The UK has decided to exit the student exchange program, citing cost issues and announcing a global program to replace it.
As for those who want to study in the UK, outside of Erasmus, the change in status will involve a sharp increase in tuition fees.
● The end of "roaming"
Another consequence of Brexit.
European consumers' right to roaming at national rates will not be guaranteed, and UK mobile operators may therefore charge additional charges to European roaming customers.
And vice versa for the British in Europe.
● Limited security cooperation
The agreement provides for the exchange of classified information and cooperation in the fight against terrorism and cross-border crime.
For foreign policy, foreign security, and defense or development cooperation, Boris Johnson chose to exclude them from the deal.