Barnier (left), the EU's chief negotiator for Brexit, walks the streets of London on Sept. 10. Xinhua News Agency/AFP
According to the British "Brexit" agreement, the Brexit transition period ended at the end of this year.
With just one week left before the Brexit transition deadline, the UK and the EU finally reached an agreement on trade issues after Brexit.
The negotiations were full of twists and turns
The British "Brexit" negotiations were full of twists and turns, protracted, and only reluctantly reached an agreement after the last moment, so that the United Kingdom failed to "leave the EU" as scheduled, and dragged on to January 31 this year. According to the "Brexit" agreement, the "Brexit" transition period in the United Kingdom ended at the end of this year.
The teams from London to Brussels and from Brussels to London, round after round, were able to reach an agreement.
There are three main issues that are stuck in the shell: fishing in British waters, market access and standards for future ANEM trade, and arbitration methods and venues for future ANEM trade disputes.
As far as the disputed fisheries issues are concerned, this is not only about the economic interests of fishing, but also about British sovereignty and the sentiments of the people. Proponents of Britain's "Brexit" regard Britain's control of fishing in the sea as a symbol of sovereignty and ask the British government to take advantage of "Brexit" to regain this sovereignty.
Britain's Johnson government has said that any new agreement on fisheries must be based on the understanding that British fisheries are first and foremost fisheries for British vessels.
The EU is also tough, especially in France. French President Emmanuel Macron stressed that this involves the income and employment of a large number of French fishermen. If the EU compromises, France will vote against it.
The EU also noted that about 70 per cent of the current share of fishing in British waters has been transferred by british fisheries to the fleets of countries such as France, while the UK benefits mainly from the sale of various fish products to the EU. If the UK insists on reclaiming its fishing rights in the waters, in the future, UK fish products will not have unlimited access to the EU market.
Wang Shuo, deputy director and researcher at the Institute of European Studies at the China Institute of Contemporary International Relations, said: "At present, the UK and the EU are ostensibly arguing over technical issues, but in fact reflect the opposition between the demands of the two sides. The UK wants to take the initiative in disputes and regain more sovereignty, but the EU involves the practical interests of 27 member states and many complex factors, as well as the future stability of the EU and foreign trade relations, so it will not give in easily or dare to give in. ”
At present, the economic and trade relationship between the United Kingdom and the European Union is still continuing the pattern before the "Brexit". If the transition period before the end of this year ends and the two sides do not reach an agreement, the UK can only "hard Brexit", which directly involves a series of major issues such as the entry of British trade in goods and services into the EU unified market and market quotas, market standards and tariffs.
A "hard Brexit" cannot be tolerated
Britain's forced "Brexit" has caused concern and confusion at home and in the EU. If the UK "hard Leaves" the EU, it will cause more chaos.
It is estimated that more than 330 UK companies will relocate their headquarters and main operations from the UK to the EU, including 72 financial services companies. The 7,500 staff of London financial institutions will be transferred to Paris, Dublin and Frankfurt, and London will lose its competitive advantage. UK residents will also perceive the serious consequences: all food products from the EU will be subject to tariffs, which means prices will rise.
The UK imports food from Europe account for 26% of total UK imports. The food category alone will cost each UK family an additional £600 a year.
The EU will impose tariffs on goods imported from the UK, with a 2.8% tax on non-agricultural products, a 10% tax on automotive products and a tax of up to 35% on dairy products. This would significantly raise the prices of British goods, especially food, in the European market, forcing them to automatically withdraw from the EU market. The EU27 is a huge internal circulation market, and it is not easy for non-EU countries to squeeze into the EU market, even if the United States repeatedly threatens the EU, it is difficult for Us products, especially agricultural products, to enter the EU.
In addition, after the UK's withdrawal from the EU, UK-EU trade alone is a major problem at the border. According to media estimates, if the UK and the EU can not reach an agreement, in the future, as a pure "non-EU member state", even if the EU countries are allowed to enter the UK market, trucks will be queued up, drivers will have to go through a long wait and inspection to enter the British territory, at least tens of thousands of trucks will be waiting in Dover every day for customs clearance. This single trouble could lead to food supply shortages and rising prices in the UK market.
Wang Yimai, professor at the School of International Relations at Chinese University and director of the Institute of International Affairs, pointed out: "The United Kingdom is currently in the worst recession in 300 years, and the cost of 'hard Brexit' is something that the United Kingdom cannot afford, and the United Kingdom will continue to put pressure on the Johnson government." ”
Both sides expressed satisfaction
The EU and the UK reached a post-Brexit trade deal at the last minute, ending months of disagreement over fishing rights and future commercial competition rules, the BBC reported on Dec. 24.
The 2,000-page trade deal covers a wide range of terms, from civil nuclear energy cooperation to fisheries and aviation.
The deal promised Britain to export goods to the EU's internal market without tariffs or quantitative restrictions, desches news agencies said. The EU will also be given fair playing conditions, which means the same environmental, social and subsidy standards. Eu fishermen's access to UK waters to fish was a difficult point in the negotiations, and the two sides did not agree until noon on December 24.
After the deal was reached, Johnson tweeted a photo of himself smiling and giving a thumbs up. European Commission President von der Leyen said he was satisfied and relaxed, saying it was time to "turn the page and look to the future." She stressed that the UK and EU are "long-term allies". Barnier, the EU's chief negotiator for Brexit, said it was a relief to reach an agreement. The Irish prime minister welcomed the deal, saying it was a version that would minimize brexit damage.
The British Prime Minister's Office issued a statement on December 24, saying: "We have completed 'Brexit' and now we can make the most of the excellent opportunity that being an independent trading nation can offer us to reach trade deals with other partners around the world." ”
According to the announcement issued by the European Commission, the core of the agreement is a "EU-UK free trade agreement", covering all aspects of EU-UK goods and services trade, investment, competition, prohibition of state aid, taxation, transport, energy, fisheries and even data protection, social security coordination and so on.
Von der Leyen also praised the agreement. "It's been a long and winding road, but we got a good deal," von der Leyen said at a news conference, "[The agreement] is fair, just, and it's something that should be done and responsibly for both of us." ”