- 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. Negotiations between the UK and the EU are ongoing on a Common Sanitary and Phytosanitary Agreement, a youth mobility scheme and energy cooperation. The UK and EU have agreed to hold annual summits as part of the new Strategic Partnership.
- Timing: the TCA broadly governs the UK-EU trading relationship and a review of the entire TCA is due to take place in 2026.
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