- The TCA sets out the new trading terms and the framework of the future cooperation between the UK and the EU.
- For services, there are provisions in the TCA around the movement of people, and the ability to provide services across borders. There are also complex services reservations. On goods, there are zero tariff and zero quotas, but some additional barriers to trade such as administration relating to customs and VAT, plus sanitary and phytosanitary (SPS) checks.
- A three year extension has been granted to the rules of origin on electric cars traded between the UK and the EU, ensuring that new 10% tariffs are not imposed.
- Following the resolution to the Northern Ireland Protocol and establishment of the Windsor Framework, the UK and the EU have pursued closer ties, with a new Memorandum of Understanding on financial services signed and the UK taking up association membership of Horizon and Copernicus.
- The UK and EU have agreed the “Common Understanding” to reduce trade frictions. The deal includes a commitment to work towards a Sanitary and Phytosanitary Agreement, a broad security pact, a youth mobility scheme and energy cooperation.
- Timing: the TCA is the status quo for trade with the EU. The TCA is due to undergo a review, commencing by 31 December 2025, but the government may seek to make side agreements or other changes before this date.
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