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European Parliament approves post-Brexit trade deal with UK
The European Parliament has ratified the post-Brexit trade deal between the European Union and the United Kingdom (UK).
Trade and Cooperation Agreement (TCA)
- The EU–UK Trade and Cooperation Agreement (TCA) is a free trade agreement signed in December 2020, between the EU, the European Atomic Energy Community (Euratom) and the United Kingdom (UK).
- The deal was ratified nearly five years after Britain decided to leave the European Union. It has already been ratified by the UK Parliament.
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- Provisionally Enacted: This deal was provisionally enacted in January 2020 in order to minimize trade disruptions between the EU and the UK.
- Provisional approval was set to expire on 30th April 2021, so the European Parliament’s ratification ensures that the flow of trade between the EU and the UK will continue uninterrupted.
- Key Provisions:
- Level Playing Field: It essentially means that in order to trade with the EU’s single market, the UK will have to follow the same rules and regulations to ensure that it does not have an unfair advantage over other EU businesses.
- Rules of Governance: These will dictate how any deal is enforced as well as the penalties that will be imposed if one party violates the terms of a mutually-approved agreement.
- Fishing Rights: The agreement gives free access to EU fleets to fish in UK waters, including up to six miles off the shoreline for a five-year transition period. At the end of the transition, everything will return to normal arrangements and the UK will have full control over its waters.
- Framework for Policing: It also provides for a framework governing law enforcement matters, which will allow UK and EU policing agencies to coordinate in the future.
- Agreement addresses other key aspects of international trade, including intellectual property protections and road transportation provisions.
- Limitations:
- The important sectors of the UK economy, such as legal and financial services, were left unaddressed.
- Currently, legal and financial service companies based in the UK are subject to the same restrictions as other firms outside of the EU.
- Provisionally Enacted: This deal was provisionally enacted in January 2020 in order to minimize trade disruptions between the EU and the UK.
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