Abr 15, 2021

What Does The Withdrawal Agreement Mean

The United Kingdom has opted for a regime that requires EU citizens to apply for a new resident status known as «settled» or «pre-settled.» It is not yet clear whether each EU-27 will exercise its discretion under the withdrawal agreement to force British residents to apply for a new resident status. The Government`s Agriculture Act will advance measures for the UK`s new agricultural support programmes. The VA generally applies EU state aid rules, which remain applicable in the UK, to enable the UK to implement agricultural support schemes during the transitional period/extension of transitional periods. Although the CAP rules are not directly applicable, the UK 2020 scheme must be in line with the EU CAP and spending on UK systems during the transition period is limited to the cap spending level. The Ireland/NI protocol contains similar measures that come into force if the VA does so. Under the backstop, the UK will form a customs union with the EU (with the exception of trade in fisheries and aquaculture products, which is expected to be the subject of a new agreement on fishing opportunities by 1 July 2020). The UK will comply with specific EU customs legislation, including for third countries, and some harmonisation of tax, environmental, labour law, state aid, competition and public enterprise/monopoly legislation will continue, but without any obligation to follow the new EU legislation and ECJ jurisprudence. In order to create a level playing field, the UK is committed not to competitiveise EU environmental protection, social and labour standards, state aid and competition, as well as state-owned enterprises in tax management. If, at the end of the transition period, the EU and the UK fail to reach an agreement on their future relations guaranteeing the absence of a border between Ireland and Northern Ireland, the «backstop of Northern Ireland» will come into force.

In this case, Northern Ireland will be part of the UK customs territory, but it will be aligned with a limited set of EU rules, particularly with regard to goods. Trade in goods is affected. There will be regulatory controls on goods taking place at the UK`s entry into Northern Ireland and not through the land border between Northern Ireland and the Republic of Ireland.