UK and EU reach Brexit trade deal

[webfact 78,434]

UK and EU reach Brexit trade deal

By Guy Faulconbridge, Elizabeth Piper and John Chalmers

 

British Prime Minister Boris Johnson holds a news conference in Downing Street on the outcome of the Brexit negotiations, in London, Britain December 24, 2020. Paul Grover /Pool via REUTERS

 

LONDON/BRUSSELS (Reuters) - Britain clinched a narrow Brexit trade deal with the European Union on Thursday, just seven days before it exits one of the world's biggest trading blocs in its most significant global shift since the loss of empire.

 

The deal, agreed more than four years after Britain voted to leave the bloc by a slim margin, offers a way out of a chaotic finale to a divorce that has shaken the 70-year project to forge European unity from the ruins of World War Two.

 

It will preserve Britain's zero-tariff and zero-quota access to the bloc's single market of 450 million consumers, but will not prevent economic pain and disruption for the United Kingdom or for EU member states.

 

Many aspects of Britain's future relationship with the EU remain to be hammered out, possibly over years.

 

"We have taken back control of our destiny," British Prime Minister Boris Johnson told reporters after tweeting a picture of himself raising both arms in a thumbs-up gesture of triumph.

 

"People said it was impossible, but we have taken back control."

 

The UK formally left the EU on Jan. 31 but has since been in a transition period under which rules on trade, travel and business remained unchanged until the end of this year.

 

Johnson, the face of the pro-Brexit campaign, had said that since 52% had voted to leave the EU, he did not want to accept the rules of its single market or its customs union after Jan. 1.

 

The EU did not want to give unfettered privileges to a freewheeling, deregulated British economy outside the bloc, and so potentially encourage others to leave - resulting in a tortuous negotiation.

 

"It was a long and winding road," European Commission President Ursula von der Leyen told reporters, quoting the Paul McCartney song. "But we have got a good deal to show for it... Finally we can leave Brexit behind us and look to the future. Europe is now moving on."

 

'JUMBO' DEAL

Johnson described the last-minute agreement as a "jumbo" free trade deal along the lines of that done between the European Union and Canada, and urged Britain to move on from the divisions caused by the 2016 Brexit referendum.

 

The deal will also support the peace in Northern Ireland - a priority for U.S. President-elect Joe Biden, who had warned Johnson that he must uphold the 1998 Good Friday Agreement.

 

EU member Ireland said the deal, which the Commission website said would be published soon, protected its interests as well as could possibly have been hoped.

 

But it left much of the detail still to be worked out.

 

The trade pact will not cover services, which make up 80% of the British economy, including a banking industry that positions London as the only financial capital to rival New York.

 

Access to the EU market for UK-based banks, insurers and asset managers will become patchy at best.

 

Johnson said the deal did not contain as much as he would have liked on regulatory equivalence for financial services, but still contained some "good language".

 

JPMorgan said the EU had secured a deal that allowed it retain nearly all of its advantages from trade with the UK but with the ability to use regulations to "cherry pick" among sectors where the UK had advantages - such as services.

 

"The unity and strength of Europe paid off," French President Emmanuel Macron said. "The agreement with the United Kingdom is essential to protect our citizens, our fishermen, our producers. We will make sure that this is the case."

 

Brexit campaigner Nigel Farage said the deal would keep the UK far too closely aligned with the EU, adding that he hoped this would be the beginning of the end of the bloc.

 

Even with a deal, goods trade will have more rules, more red tape and more cost. There will be some disruption at ports.

Everything from food safety regulation and exporting rules to product certification will change.

 

DETAIL TO COME

Much of the detail has yet to worked out. A U.S. State Department official welcomed the agreement and said Washington wanted good relations with Britain and the EU, while adding:

 

"We leave it to the UK and EU to negotiate a post-Brexit trade deal that is mutually agreeable and beneficial to both parties."

 

When the UK shocked the world by voting to leave the EU, many in Europe hoped that it could stay closely aligned. Von der Leyen, quoting Shakespeare, said that "parting is such sweet sorrow".

 

The EU loses its principal military and intelligence power, 15% of GDP, one of the world's top two financial capitals and a champion of free markets that had acted as an important check on the ambitions of Germany and France.

 

Without the collective might of the EU, the United Kingdom will stand largely alone - and much more reliant on the United States - when negotiating with China, Russia and India. It will have more autonomy but be poorer, at least in the short term.

 

Sterling was up just 0.3% on the day by 1630 GMT, having earlier risen to $1.3618 - just shy of last week's 2-1/2-year high on news of the deal, as investors turned to the detail.

 

The Bank of England has said that, even with a trade deal, Britain's gross domestic product is likely to suffer a 1% hit from Brexit in the first quarter of 2021. And Britain's budget forecasters have said the economy will be 4% smaller over 15 years than it would have been if Britain had stayed in the bloc.

 

British businesses, among the world's worst hit by the coronavirus, were downbeat.

 

"After four long years of uncertainty and upheaval, and just days before the end of transition, businesses will be able to muster little more than a muted and weary cheer," Adam Marshall, Director General of the British Chambers of Commerce, said.

 

The UK, which imports about $107 billion more a year from the EU than it exports there, had bickered until the end over fish - a totemic issue, but worth less than 0.1% of GDP.

 

Tony Danker, director-general of the Confederation of British Industry, said time was now critically short.

 

"Coming so late in the day, it is vital that both sides take instant steps to keep trade moving and services flowing."

 

The deal governing post-Brexit trade needs the approval of both European Parliament and the EU's 27 member states. Ambassadors from EU countries will meet on Dec. 25 to start reviewing the deal. The European Parliament said on Thursday it would analyse the deal in detail before deciding whether to approve the agreement in the new year.

 

The British parliament, as divided as the country over Brexit, will debate and vote on the deal on Dec. 30, just one day before the transition period lapses.

 

(Reporting by Gabriela Baczynska, Guy Faulconbridge, Elizabeth Piper, Conor Humphries, Kate Holton, John Chalmers, William Schomberg, Paul Sandle and Michael Holden; Writing by Guy Faulconbridge and John Chalmers; Editing by Alison Williams, Philippa Fletcher and Nick Macfie)

 

-- © Copyright Reuters 2020-12-25

 

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[Hi from France 1,299]

Quote

representatives of the fishing industry said it was “bitterly disappointed” with what Johnson described as a “prodigious” increase in the amount of fish the UK could land.

 

Quote

Barrie Deas, head of the National Federation of Fisherman’s Organisations, said Johnson had had his “Ted Heath moment” – a reference to his predecessor giving away fishing rights in British waters in 1973.

 

Quote

A transition period of five-and-a-half years to phase in changes, with the UK accepting a 25% repatriation of quotas, amounted to “justice deferred, justice denied”, he said.

https://www.theguardian.com/politics/2020/dec/24/borisjohnsons-vows-to-pit-uk-against-eu-in-race-for-success

 

I know fishing is not important, but even then I'm at a loss to see what the UK got in exchange for these (mainly Scottish) fishing quotas.

 

The EU will keep 75% and for what? 

 

[Samui Bodoh 26,909]

1 hour ago, webfact said:

Without the collective might of the EU, the United Kingdom will stand largely alone - and much more reliant on the United States - when negotiating with China, Russia and India. It will have more autonomy but be poorer, at least in the short term.

Congrats UK!

 

You have gone from being a big fish in a big pond to a little fish in a big pond.

 

I respect the democratic right of a country, but choosing to diminish yourself in the world doesn't make a lot of sense to me.

 

 

[Laughing Gravy 14,477]

As anyone with half a brain could see that a deal would happen at the last minute. I and many others who voted leave on here predicted it (It wasn't difficult) even though I wanted a no deal and complete break.

 

So we will get the usual "The UK caved in Boris gave in, etc". What matters is the UK have left the EU and can trade with other nations. You talk about fishing rights. they will  ALL belong to the UK soon.

 

We have had the seas raped and pillaged for forty plus years, a few more years (although it is less ) won't matter.

 

The UK are free from the EU. That is something to celebrate and we will never return.

 

 

Edited December 25, 2020 by Rimmer

[Hi from France 1,299]

Another question was policing and fighting terrorism, this deal is a serious setback too

 

Quote

Today's deal confirms the UK will automatically forfeit its membership of Europol, Eurojust, the European Arrest Warrant and real-time sensitive data-sharing agreements such as the Schengen Information System (SIS2) when the UK exits the transition period on 1 January.

 

Quote

These organisations and systems are not insignificant - so important is access to SIS2, that a senior British law enforcement officer described it as "a game-changer" in recent evidence to a House of Lords select committee.

 

Quote

The figures speak for themselves. UK police access the SIS2 database around half a billion times every year.

https://news.sky.com/story/brexit-britain-will-be-less-secure-without-access-to-shared-data-12172399

 

So what's the plan? 

[vinny41 2,843]

34 minutes ago, Hi from France said:

 

 

https://www.theguardian.com/politics/2020/dec/24/borisjohnsons-vows-to-pit-uk-against-eu-in-race-for-success

 

I know fishing is not important, but even then I'm at a loss to see what the UK got in exchange for these (mainly Scottish) fishing quotas.

 

The EU will keep 75% and for what? 

 

Barry Deas wanted

Control over access to fish within the EEZ

Access negotiated as part of annual fisheries agreements

12-mile exclusive limit

Quota shares that reflect the resources in UK waters

Access to market without surrendering fishing rights

https://www.express.co.uk/news/uk/1376153/brexit-news-fishing-uk-eu-boris-johnson-michel-barnier-trade-deal-fisheries

 

So he wanted access to eu markets  without surrendering fishing rights

That was never going to happen 

[Roadman 3,390]

14 minutes ago, Laughing Gravy said:

As anyone with half a brain could see that a deal would happen at the last minute. I and many others who voted leave on here predicted it (It wasn't difficult) even though I wanted a no deal and complete break.

 

So we will get the usual "The UK caved in Boris gave in, etc". What matters is the UK have left the EU and can trade with other nations. You talk about fishing rights. they will  ALL belong to the UK soon.

 

We have had the seas raped and pillaged for forty plus years, a few more years (although it is less ) won't matter.

 

The UK are free from the EU. That is something to celebrate and we will never return.

 

Quoting the Guardian really is like taking the Beano and Dandy to an academic conference and claiming you have quality evidence.

Congrats to all the Pom Brexiters on here. You got the sovereignty of your country back, and the rights of free trade. Well done.  

[Laughing Gravy 14,477]

Another EU Reuters article showing its bias.

The UK away from the EU clutches and free to trade with a much bigger world.

 

I guess that the other countries who are free loaders will have to start chipping in and those that do will be paying more.  A win win for me.

[vinny41 2,843]

14 minutes ago, Laughing Gravy said:

As anyone with half a brain could see that a deal would happen at the last minute. I and many others who voted leave on here predicted it (It wasn't difficult) even though I wanted a no deal and complete break.

 

So we will get the usual "The UK caved in Boris gave in, etc". What matters is the UK have left the EU and can trade with other nations. You talk about fishing rights. they will  ALL belong to the UK soon.

 

We have had the seas raped and pillaged for forty plus years, a few more years (although it is less ) won't matter.

 

The UK are free from the EU. That is something to celebrate and we will never return.

 

Quoting the Guardian really is like taking the Beano and Dandy to an academic conference and claiming you have quality evidence.

Quoting the Guardian with a valid link is more preferable that the cut and paste images that have been posted recently  from  Alistair Campbell twitter page and not providing any source link similar to secret squirrel type of operation

[CG1 Blue 6,588]

15 minutes ago, Hi from France said:

Another question was policing and fighting terrorism, this deal is a serious setback too

 

 

 

https://news.sky.com/story/brexit-britain-will-be-less-secure-without-access-to-shared-data-12172399

 

So what's the plan? 

Did you run out of money for your electricity meter before you reached the end of that article?

 

A document released by the European Commission around the same time was more circumspect but revealed plans for "a new framework for law enforcement and judicial co-operation".

It also said the agreement includes "ambitious arrangements" for the sharing of criminal record information, DNA, fingerprints and air passenger and vehicle registration data. That's good news.

So too is the provision for a fast-tracked extradition system to replace the European Arrest Warrant, which will be "unprecedented for a non-Schengen third country", according to Brussels, and the news that DNA and fingerprint data will continue to be exchanged through the Prüm system.

 

And this is just for starters. Both sides will no doubt sharpen the tools over time - why wouldn't they? Or do you think the EU want criminals to get away with stuff?  

 

 

[Laughing Gravy 14,477]

If you can access the Times a more accurate breakdown of who benefits for what is given.

 

https://www.thetimes.co.uk/edition/news/brexit-deal-details-what-was-agreed-in-full-7knwn6z8t

 

So it is now over. The remainers will have nothing else to whine about, although I am sure we will still here from some who still haven't got over the referendum result. They will still be able to buy there <deleted> French wine and cheeses and visit EU countries. All the huffing and puffing for nothing.

Edited December 24, 2020 by Laughing Gravy

[Loiner 9,491]

58 minutes ago, Hi from France said:

 

The EU will keep 75% and for what?

 

For not very long really. 

[vogie 24,511]

The biggest thanks must go to Nigel Farage for without him tirelessly working for forty years to get us out of the EU none of this might not have happened, not forgetting the likes of Lord Frost and of course the inimitable Boris himself. 

As one source said 'Soubry, Gina Millar, Tony Blair and Alistair Campbell, "your boys took one hell of a beating tonight"

And to quote George Gallaway "Key aspect for me is that we get an opt-out of the Eurovision Song Contest," another corrupt organisation.

Merry Christmas everybody. Ho Ho Ho.

[luckyluke 4,343]

8 minutes ago, Laughing Gravy said:

All the huffing and puffing for nothing.

 

Well Mr. Johnson seems to be happy with the deal. 

Except a minority of "Hard Boilers" who didn't want a deal at all, I suppose the majority of the Britons are or will be happy as well. 

The man in the street in Europe had never a word to say in this Brexit thing, so we will also accept the outcome. 

We would had to accept any outcome anyway. 

 

Now wait & see, what all this, will change concretely in the daily life of the man in the street in the U.K. and Europe. 

 

There will of course be some in the U.K. who will be happy already with the fact that Brexit will now really take place. 

 

Despite being important, things like that are generally rather easely forgotten, in favour of the concrete reality of the daily life. 

 

 

[Laughing Gravy 14,477]

13 minutes ago, luckyluke said:

 

Well Mr. Johnson seems to be happy with the deal. 

Except a minority of "Hard Boilers" who didn't want a deal at all, I suppose the majority of the Britons are or will be happy as well. 

The man in the street in Europe had never a word to say in this Brexit thing, so we will also accept the outcome. 

We would had to accept any outcome anyway. 

 

Now wait & see, what all this, will change concretely in the daily life of the man in the street in the U.K. and Europe. 

 

There will of course be some in the U.K. who will be happy already with the fact that Brexit will now really take place. 

 

Despite being important, things like that are generally rather easely forgotten, in favour of the concrete reality of the daily life. 

 

 

I see you are now replying to my posts. Still didn't get an apology.

 

Anyway the UK has left the EU. It seems there has been a compromise.

 

So you and the other EU lovers will be happy.

 

I feel there are difficult times ahead for the EU.