A cleaner sweeps the pavement front of 10 Downing Street in London, Thursday, Dec. 24, 2020. Negotiators from the European Union and Britain worked through the night and right into Christmas Eve to put the finishing touches on a trade deal that should avert a chaotic economic break between the two sides on New Year’s Day. (AP Photo/Frank Augstein)

A cleaner sweeps the pavement front of 10 Downing Street in London, Thursday, Dec. 24, 2020. Negotiators from the European Union and Britain worked through the night and right into Christmas Eve to put the finishing touches on a trade deal that should avert a chaotic economic break between the two sides on New Year’s Day. (AP Photo/Frank Augstein)

Breakthrough: UK and EU reach post-Brexit trade agreement

The British and European parliaments both must hold votes on the agreement

After months of talks and at almost the last minute, Britain and the European Union struck a provisional free-trade agreement Thursday that should avert New Year chaos for cross-border traders and bring a measure of certainty for businesses after years of Brexit turmoil.

With just over a week until the U.K.’s final split from the EU, the British government said the “deal is done.”

It said the deal was “the first free trade agreement based on zero tariffs and zero quotas that has ever been achieved with the EU.”

EU officials also confirmed an agreement had been reached.

“So we have finally found an agreement. It was a long and winding road but we have got a good deal to show for it,” European Commission President Ursula von der Leyen said. “It is fair, it is a balanced deal and it is the right and responsible thing to do for both sides.”

British Prime Minister Boris Johnson was expected to make a statement shortly.

The deal ensures the two sides can continue to trade in goods without tariffs or quotas. But despite the breakthrough, key aspects of the future relationship between the 27-nation bloc and its former member remain uncertain.

The British and European parliaments both must hold votes on the agreement, though the latter may not happen until after the U.K. leaves the EU’s economic embrace on Jan. 1.

Months of tense and often testy negotiations gradually whittled differences between the two sides down to three key issues: fair-competition rules, mechanisms for resolving future disputes and fishing rights. The rights of EU boats to trawl in British waters remained the last obstacle before it was resolved.

However, key aspects of the future relationship between the 27-nation bloc and its former member remain unresolved.

Johnson had insisted the U.K. would “prosper mightily” even if no deal were reached and the U.K. had to trade with the EU on World Trade Organization terms. But his government has acknowledged that a chaotic exit was likely to bring gridlock at Britain’s ports, temporary shortages of some goods and price increases for staple foods.

The EU has long feared that Britain would undercut the bloc’s social, environmental and state aid rules after Brexit, becoming a low-regulation rival on the bloc’s doorstep. Britain denies planning to institute weaker standards but said that having to continue following EU regulations would undermine its sovereignty.

A compromise was eventually reached on the tricky “level playing field” issues. The economically minor but hugely symbolic issue of fish came to be the final sticking point, with maritime EU nations seeking to retain access to U.K. waters where they have long fished and Britain insisting it must exercise control as an “independent coastal state,”

Huge gaps over fishing were gradually closed over weeks of intense negotiations in Brussels, even as Johnson continued to insist that a no-deal exit was a likely and satisfactory outcome to the nine months of talks on the future relationship between the EU and its ex-member nation.

It has been 4 1/2 years since Britons voted 52%-48% to leave the EU and — in the words of the Brexiteers’ campaign slogan — “take back control” of the U.K.’s borders and laws.

It took more than three years of wrangling before Britain left the bloc’s political structures on Jan. 31. Disentangling economies that were closely entwined as part of the EU’s single market for goods and services took even longer.

The U.K. has remained part of the single market and customs union during an 11-month post-Brexit transition period. As a result, many people so far will have noticed little impact from Brexit.

On Jan. 1, the breakup will start feeling real. The new year will bring huge changes, even with a trade deal. No longer will goods and people be able to move freely between the U.K. and its continental neighbours without border restrictions.

EU nationals will no longer be able to live and work in Britain without visas — though that does not apply to the more than 3 million already doing so — and Britons can no longer automatically work or retire in EU nations. Exporters and importers face customs declarations, goods checks and other obstacles.

The U.K.-EU border is already reeling from new restrictions placed on travellers from Britain into France and other European countries due to a new coronavirus variant sweeping through London and southern England. Thousands of trucks were stuck in traffic jams near Dover on Wednesday, waiting for their drivers to get virus tests so they could enter the Eurotunnel to France.

British supermarkets say the backlog will take days to clear and there could be shortages of some fresh produce over the holiday season.

Despite the deal, there are still unanswered questions about huge areas, including security co-operation between the U.K. and the bloc and access to the EU market for Britain’s huge financial services sector.

___

Lawless reported from London.

___

Raf Casert And Jill Lawless, The Associated Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Brexit

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kootenay-Columbia MP Rob Morrison speaks during Question Period in the House of Commons. File photo.
MP Morrison calls Keystone XL permit cancellation ‘devastating news’

Kootenay-Columbia MP reacts to the Conservative Party’s removal of a controversial Ontario MP

Interior Health reported 91 new COVID-19 cases in the region Jan. 20, 2021 and three additional deaths. (Jennifer Smith - Morning Star)
95 new COVID-19 cases in Interior Health, two deaths

Another member of Vernon’s Noric House has passed

It was a quiet week for COVID-19 cases in the West Kootenay. Illustration: B.C. Centre for Disease Control
Two new cases of COVID-19 in Nelson area

The cases were confirmed for the week of Jan. 10 to 16

The Nelson and District Community Complex ice has mostly been empty this season with the Nelson Leafs’ season on hold due to the pandemic. File photo
Six Nelson sports groups included in provincial grant

The Local Sports Relief Fund is meant to offset pandemic-related expenses

The Nelson library’s podcast club is like a book club, but for podcasts. Photo: Submitted
CHECK THIS OUT: Happiness at the library

Columnist Avi Silberstein invites you to the library’s podcast club

Businesses continue to struggle under COVID-19 restrictions as the pandemic reaches the one-year mark. (B.C. government)
Another 564 COVID-19 cases, mass vaccine plan coming Friday

15 more deaths, community cluster declared in Williams Lake

Premier John Horgan leaves the podium following his first press conference of the year as he comments on various questions from the media in the Press Gallery at B.C. Legislature in Victoria, B.C., on Monday, January 13, 2020. THE CANADIAN PRESS/Chad Hipolito
Interprovincial travel restrictions a no-go, Horgan says after reviewing legal options

The B.C. NDP government sought legal advice as concerns of travel continue

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Gem Lake Top, at Big White Ski Resort, seen at Jan. 8. (Big White Ski Resort)
Big White cancels $7.3M in lift tickets, accommodations due to COVID-19 orders

Since November, the ski resort has been forced to make several changes

Jan. 21 marks the 21st day of the 21st year of the 21st century, according to some. (Black Press Media file photo)
The 21st day of the 21st year of the 21st century is upon us

Milestone won’t be back for another 100 years

Darlene Curylo scratched a $3M ticket, BCLC’s largest ever scratch and win prize. (BCLC)
Kelowna woman in shock after winning BCLC’s largest-ever instant-ticket prize

Darlene Curylo couldn’t believe her eyes when she saw the amount of money she’d won from a scratch ticket

While each person has different reasons for becoming homeless, a UBCO study shows they learn through their interactions with different services to perform ‘as homeless’ based on the expectations of service providers. (Contributed)
Kelowna homeless forced to ‘perform’ for resources, says UBCO study

One participant in the study said ‘It is about looking homeless, but not too homeless’

Gov. Gen. Julie Payette takes the royal salute from the Guard of Honour as she makes her way deliver the the throne speech, Wednesday, September 23, 2020 in Ottawa. THE CANADIAN PRESS/Fred Chartrand
Gov. Gen. Julie Payette resigns, apologizes for ‘tensions’ at Rideau Hall

Payette, who is the Queen’s representative in Canada, has been the governor general since 2017

Grounded WestJet Boeing 737 Max aircraft are shown at the airline’s facilities in Calgary, Alta., Tuesday, May 7, 2019. WestJet will operate the first commercial Boeing 737 Max flight in Canada today since the aircraft was grounded in 2019 following two deadly crashes. THE CANADIAN PRESS/Jeff McIntosh
Passengers unfazed as WestJet returns Boeing 737 Max to service on Vancouver flight

After a lengthy review process, Transport Canada cleared the plane to return to Canadian airspace

Most Read