Brexit Agreement Faces Hurdles Despite Provisional Implementation as Trade Deal Excludes Services
LONDON – The United Kingdom’s departure from the european union, formalized on December 31, 2020, has provisionally begun under a new trade agreement. This pact, reached just days before the deadline, aims to minimize disruption to trade, education, and transportation between the UK and the EU. However, a critical component remains unresolved: an agreement on services, which constitutes approximately 80% of the british economy.
The trade agreement, which has been under review by the EU’s 27 member states, is expected to be formally approved by the European Parliament in the third week of January. Until then, the agreement is being provisionally applied.
Key Provisions of the brexit Agreement:
Trade: The agreement seeks to eliminate tariffs and quotas on most goods traded between the UK and the EU.
Transportation: The deal aims to maintain relatively seamless transportation links, tho new customs procedures are expected to cause some delays.
Education: The agreement addresses educational exchanges and cooperation but does not guarantee the continuation of pre-Brexit arrangements.
Unresolved Issues:
services: The absence of a extensive agreement on services is a notable concern, given the sector’s dominance in the UK economy. Key areas like financial services, technology, and professional services face uncertainty.
Fishing: Discrepancies over fishing rights nearly derailed the entire process. The agreement includes compromises,but tensions remain.
Future Cooperation: The EU and UK have established a joint Board of Directors and 18 specialized committees to manage the post-Brexit relationship. However,the long-term effectiveness of these structures remains to be seen.
Coronavirus Pandemic Complicates Matters
The Brexit transition period coincided with the global coronavirus pandemic, which has tested the resilience of workers, companies, and governments. The pandemic also complicated the Brexit negotiations, as travel restrictions and economic uncertainty added to the challenge.
EU’s Response to Brexit and the Pandemic
The EU has taken several steps to mitigate the economic fallout from both Brexit and the pandemic:
Recovery Fund: The EU has launched a massive recovery fund to help member states recover from the pandemic-induced recession.
Debt Cancellation Debate: A debate has emerged about the possibility of the European Central Bank (ECB) canceling the debt of member states acquired during the crisis.
Vaccine Rollout: The EU has begun a coordinated vaccination campaign, viewing it as a symbol of European unity.*Other Key Developments
