Trade the agreement between the United Kingdom and the European Union welcomed relief to companies, avoiding the possibility of punitive tariffs and a chaotic separation without agreement of the main British trading partner this week.
However, the agreement leaves important issues unresolved or at risk of re-emerging. This is where the Brexit deal could cause problems in the future:
Fair play field
One of the thorniest parts of the negotiations was an agreement on so-called equitable regimes, which created the conditions for fair competition between companies. The agreed compromise means the UK does not have to align with EU law, but the bloc can impose proportional tariffs, subject to arbitration, if it can show that British actions have distorted fair competition.
This means that the issue of trade rates between the UK and the EU is still far from being resolved and is an active issue. One of the central arguments of the campaign to leave the bloc was that Britain would “regain control” of its own laws and Eurosceptic members of Boris Johnson’s Conservative party have called on the prime minister to seize the opportunity to cut regulations.
The agreement also contains a “review” clause that allows either party to periodically renegotiate that part of the treaty if they are not satisfied with its use. Therefore, the trade agreement could still collapse if the UK or the EU decide it doesn’t work.
Finance
The agreement provides little clarity for financial companies. There is no decision on so-called equivalence, which would allow companies to sell their services in the EU single market from the city of London. The agreement only includes standard provisions on financial services, so it does not include market access commitments.
Johnson told the Sunday Telegraph that the deal “may not get as far as we would like” on financial services, on a rare admission his strategy in talks had fallen short.
The Treasury must negotiate a memorandum of understanding with the EU as an urgent priority in 2021 and London will continue discussions with Brussels on access and equivalence for financial services, the chancellor of the treasury said on Sunday , Rishi Sunak.
Data
The UK and the EU have only agreed on one temporary solution for data to flow between their territories. For an interim period of up to six months, data may continue to be transferred until a separate legal agreement is reached.
EU officials have said the so-called data adequacy decision, which would certify that UK data protection rules are comparable to those in the blockchain, could be taken in early 2021.
Fish
The Brexit trade agreement contains a five-and-a-half-year transitional period for fishing, during which British fleets will experience a 25% increase in catches previously taken by EU vessels in UK waters. United. Access will then be subject to annual negotiations.
The agreement gives the UK and the EU the right to charge for each other’s fish if they can show that any future reduction in access to water causes economic or social damage.
There was an angry response from fishermen to the compromise, with the National Federation of Fishermen’s Organizations describing it as a “betrayal”. Fishing was a totemic topic in the Brexit campaign and they will pressure the UK government to pull a hard line when the next talks arrive.
Gibraltar
The United Kingdom and the EU have not yet reached an agreement on Gibraltar, the British territory connected to mainland Spain. Without an agreement, crossing the border could be more difficult, which could lead to long queues for travelers and major economic disruptions. About 15,000 workers cross the border every day.
Any attempt by Spain to erode or even end British control over the territory has long raised the annoyance of Conservative lawmakers, including former leader Iain Duncan Smith, and will fight hard to prevent the UK from making concessions. .