UK and EU reached a historical trade agreement, a road agreement for a turnover of goods of $ 900 billion

The UK and EU reached a trade agreement, facilitating a $ 900 billion turnover of goods

The UK and the European Union (EU) have just avoided the “empty-handed” scenario after agreeing on new commercial terms after more than 4 years Britain voted to “divorce” this community.

The UK and the EU will be “equal in full control” under the trade agreement just reached and tariffs will apply if one of the two parties sells goods / services cheaper than the other. Photo: AFP

The two sides reached an agreement “no tariff – no quota” on 24/12. This agreement will help open import and export activities between the two sides, with a turnover up to $ 900 billion, equal to half of the total bilateral trade turnover annually.

Currently the trade agreement between the UK and the EU still has to wait for the ratification of the National Assembly of the two sides. Voting for the deal is expected next week in Westminster, UK.

CNBC TV channel quoted British Prime Minister Boris Johnson and European Commission (EC) President Ursula von der Leyen as saying both leaders welcomed the deal. “Our debates with our European partners were at times intense, but now I believe this is a good deal for the whole European region,” British Prime Minister Boris Johnson said at the new press conference. here.

According to European Commission President Ursula von der Leyen, “it is an equal, fair and accountable agreement of both sides”. Europe will continue to cooperate with the UK in all fields, said the EC Chairwoman, and rated the UK as “a reliable partner”.

Nearly half a century of joining the EU, Britain officially left this community on January 31, 2020, and became the first country to leave the EU. However, after Brexit, the UK will continue to comply with EU regulations until the end of 2020. During this transition, the UK negotiates on trade conditions with 27 EU member states.

However, trade negotiations between the UK and the EU have become tense since March 2020, especially trade issues after the transition period ends. The disagreements in bilateral trade negotiations focused on three major issues, including: fishing, competition regulations, and the management of new relationships.

But with the agreement just reached, the EU has reached “level playing field”. Accordingly, neither party is allowed to provide goods / services at a cheaper price than the other by “pumping” subsidies or similar measures. The British Prime Minister emphasized that the UK and the EU will be “equal at all” and that tariffs can be imposed if one of the two parties sells goods / services cheaper than the other.

In terms of fishing – the issue that once caused the bilateral trade agreement to fall into a stalemate, the UK and the EU have agreed to a transition period lasting 5 and a half years. During this period, EU fishing vessels will continue to be allowed to exploit in UK territorial waters and the negotiation of fishing quotas will be conducted annually.

The above-mentioned transition period on fishing is longer than the time proposed by the British Prime Minister, but shorter than the 10-year roadmap that the EU made earlier.

According to this period, the “market share” of British fishing in the UK’s territorial sea will increase to 2/3, from 1/2, the British Prime Minister said.

The fact that the UK and the EU have reached a trade agreement is something that the business community of the two sides greatly welcomes because it is expected to put an end to the economic instability that seems to have no end, after more than 4 years. when the UK decides to leave the EU.

This agreement will make UK and EU exporters breathe, because if the two sides do not reach any trade agreement, exporters will face higher tariffs and costs.

European Commission President Von der Leyen said she felt quite satisfied or “more accurately said” when the two sides reached a trade agreement. “I know this is a difficult day for some people and for our friends in the UK. I want to say that leaving (Brexit – BTV) has become ‘sweet sorrow’,” said Von der Leyen. expressed.

And EU negotiator Michel Barnier agreed to call it a day of sigh, but it was accompanied by “a little sadness”.

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