New EU-UK agreement to regulate trade ties beginning today

01 Jan '21

3 min read

Pic: Shutterstock

The European Union (EU) and United Kingdom signed the EU-UK trade and cooperation agreement on December 30. The latter formally left the EU nearly a year ago and the new agreement will provisionally regulate ties beginning today on a gamut of areas, including trade, transport, energy and fishing. Both sides said it was a chance to begin a new chapter.

British parliament’s lower house voted 521 to 73 in favour of the deal. It received royal assent soon after. “House of Lords is notified of Royal Assent to the European Union (Future Relationship) Act,” the House of Lords said in a tweet.

After signature from both sides, the deal will be in place until February end, pending final approval by the European Parliament to make it permanent.

British Prime Minister Boris Johnson, while addressing a specially-convened parliament session, said he hoped to work ‘hand in glove’ with the EU when its interests aligned, using Britain’s new-found sovereignty to reshape the British economy.

“Brexit is not an end but a beginning,” Johnson said. “The responsibility now rests with all of us to make the best use of the powers that we regain, the tools that we’ve taken back into our hands,” he was quoted as saying by British media reports.

Johnson said he hoped to end the “old, tired, vexed question of Britain’s political relations with Europe” and instead become “the best friend and ally the EU could have”.

The opposition Labour Party says the deal is too thin and doesn’t protect trade in services; fishermen are unhappy that their interests have been compromised, and Northern Ireland’s status remains uncertain. The Scottish and Northern Irish parliaments have rejected the deal, terming it disastrous and damaging.

Eurosceptic lawmaker Bill Cash said Johnson had saved the British democracy from four decades of ‘subjugation’ to Brussels.

“It is of the utmost importance for the European Union and the United Kingdom to look forward, in view of opening a new chapter in their relations,” the EU said in a statement.

Johnson has refused to accept the deal will create new barriers to trade with the EU as is being claimed by many.

"On major issues, the European Union stands ready to work shoulder to shoulder with the United Kingdom. This will be the case on climate change, ahead of the COP 26 in Glasgow, and on the global response to pandemics, in particular with a possible treaty on pandemics. On foreign affairs, we will seek cooperation on specific issues based on shared values and interests,” European Council president Charles Michel said.

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