Tribune. The trade and cooperation agreement is finally signed between the United Kingdom and the European Union (EU). It was the last major text under negotiation with a view to concluding Brexit. Its entry into force has been effective since the beginning of January.
Beyond reassuring statements from each other on the outcome of these negotiations, no one knows whether the application of this text will be painful or will engender real cooperation between two entities which separate but remain linked in the duration.
The two protagonists have chosen by mutual agreement to continue to trade freely, without taxes or customs duties, provided that “Fair conditions for open and fair competition and sustainable development”.
So let’s try to decipher the few most emblematic parts of this 1,354-page text, in order to analyze its originality and applicability.
Seemingly contradictory requirements
First of all, there is what does not change. For the two partners, these are all the provisions which concern the non-subsidization of productive activities and services, the prohibition of distorting competition on public calls for tenders or through undue support for public enterprises, in line with usual rules advocated by the World Trade Organization (WTO).
And then there is what changes and innovates.
While the European Union has agreed to continue to trade freely without taxes or duties with the United Kingdom, it wished that this would not be deregulated free trade but free trade framed by the rules of its internal market. However, it was out of the question for the British not to regain their full sovereignty.
In order to make these two apparently contradictory requirements compatible, the protagonists of this agreement have each taken a step towards the other. In Title X of this agreement (page 202), it is clearly specified that “Each party is free to define its approach to good regulatory practice under this Agreement in a manner compatible with its own legal framework …”.
The United Kingdom thus finds material there to effectively regain full control of its laws and regulations, particularly in the trade field. However, for the EU, these regulatory changes should hardly be likely to create distortions of competition.
An arbitration tribunal
Consequently in point 4 (page 208) of Title XI, it is provided that “The parties affirm that they both agree that their economic partnership can generate mutually satisfactory benefits only if commitments on a level playing field for open and fair competition stand the test of time, preventing trade and investment distortions, and contributing to sustainable development ”.
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