Establishing new relations with the United Kingdom
The United Kingdom’s decision to withdraw from the EU meant that, for the first time ever, a Member State left the EU’s Single Market, Customs Union, and all Union policies.
That is why, after the conclusion of the EU-UK Withdrawal Agreement, the von der Leyen Commission established a new relationship between the EU and the UK in December 2020.
A new trade and cooperation agreement
The signing of the EU-UK Trade and Cooperation Agreement (TCA) in December 2020 after a period of very intense negotiations, put an end to the uncertainty over the EU’s future relationship with the UK.
The TCA addresses comprehensively all aspects of this new relationship on a range of matters including:
- trade
- police and judicial cooperation
- energy
- digital trade
- intellectual property
- transport
- social security coordination
It is very ambitious in scope and content, while fully protecting the EU’s interests and reflecting the status of the UK as a third country.
It commits both parties to common high standards ensuring:
- the protection of labour and social standards
- environmental protection
- the fight against climate change, including carbon pricing
- tax transparency
It also contains detailed principles on State aid to prevent either side from granting unfair, trade-distorting subsidies and ensure a level playing field.
The activities and livelihoods of European fishing communities were also safeguarded by the TCA, while the joint management of fishing stocks was regulated. EU fishing vessels have been benefitting from a transition period of 5.5 years, during which they maintain the same level of access to UK waters with a gradual and balanced reduction of EU quotas over time and strong incentives for the UK to continue granting access beyond the transition period.
Protocol on Ireland and Northern Ireland
A number of difficulties arose in the implementation of the Protocol on Ireland and Northern Ireland –a key part of the Withdrawal Agreement – which strained our relations with the UK.
In February 2023, following many attempts by the Commission to address these difficulties, President von der Leyen and Prime Minister Rishi Sunak agreed the Windsor Framework. It includes comprehensive solutions aimed at addressing the practical challenges faced by citizens and businesses in Northern Ireland. The solutions include new arrangements on customs, agri-food, medicines, VAT and excise, as well as specific participatory instruments designed to ensure that the voices of the people of Northern Ireland are better heard on specific issues. These new arrangements are underpinned by robust safeguards to ensure the integrity of the EU's Single Market, to which Northern Ireland has a unique access.
This agreement has finally allowed us to turn the page towards a more positive, constructive bilateral relationship, as we step up the implementation of the TCA, fully exploiting its potential. For example:
In December 2022, a Memorandum of Understanding was signed between the North Seas Energy Cooperation and the UK to strengthen their joint action on offshore renewable energy. The memorandum recognises the important role of offshore renewable energy in reaching our climate and energy targets as well as the need to accelerate the green transition in view of the vast offshore renewable energy potential of the North Seas. The cooperation aims to facilitate the planning and development of specific offshore renewable projects, including offshore grids.
The signing of the EU-UK Memorandum of Understanding in financial services regulatory cooperation, which established a Joint EU-UK Financial Regulatory Forum. The Forum which will serve as a platform to facilitate structured dialogue on issues related to financial services, similar to what the Commission has with other third country jurisdictions, such as the United States.
In September 2023, the Commission and the UK reached a political agreement on the UK's participation in Horizon Europe and Copernicus. This will allow the EU and UK to deepen their relationship in research, innovation, and space, bringing together research and space communities. The political agreement was formally adopted on 4 December 2023. It is subject to a financial contribution by the UK to the EU budget.
The impact on EU-UK relations
Even though the Trade and Cooperation Agreement is one of the most ambitious agreements ever concluded by the EU with a third country, it is not a substitute for a membership in the EU. As a result, Brexit has had a significant impact on the UK’s economic relationship with the EU. The UK’s Office for Budget Responsibility, which provides independent analysis of public finances, estimates that the total trade volumes with the EU are 15% lower than they would have been had the UK remained a Member State.
As we build on the positive bilateral developments, the Commission will continue working to ensure the full and strict implementation of all agreements with the UK, notably the Withdrawal Agreement –which includes the Windsor Framework – and the TCA. In particular, the Commission will be vigilant to ensure that the beneficiaries of the Withdrawal Agreement – 5.7 million EU citizens in the UK and 1.1 million UK nationals in the EU – can fully enjoy their rights.