The Withdrawal Agreement was approved by the European Parliament on 29 January 2020 and by the Council on 30 January. It entered into force on 1 February 2020 and on that date, the UK left the European Union. Three key areas in the WA are protecting EU Citizens’ Rights, a financial settlement and a governance structure. It incorporates a Protocol on Ireland and Northern Ireland. 

The  Trade and Cooperation Agreement (TCA) consists of four main pillars: 

• A Free Trade Agreement (with zero tariffs and zero quotas on all goods that comply with the appropriate rules of origin). 
• An ambitious cooperation regime on other economic issues, including provisions related to investments, competition, state aid, tax transparency, air and road transport, energy and sustainability, fisheries, and social security coordination. 
• A new partnership for citizens' security through police and judicial cooperation, including data protection and exchange.
• A comprehensive governance system. 

More information about the Withdrawal Agreement and the Trade and Cooperation Agreement can be found here.

In accordance with Article 18 of the Withdrawal Agreement, eligible EU citizens who arrived in the UK before 31 December 2020 and stayed, have to apply to the EU Settlement Scheme, a new UK immigration status implementing the Withdrawal Agreement. The EU Delegation in the UK has been working with the UK authorities, EU embassies in the UK as well as with grassroots organisations to raise awareness of the scheme and to ensure that the rights of the citizens who applied to the scheme continue to be protected.  

Financial services

Financial services are a key part of the EU’s relationship with the UK. Under the Trade and Cooperation Agreement as in other free trade agreements of the EU, both parties have committed to keeping their markets open for operators seeking to supply services through the establishment. This commitment is without prejudice to the right to adopt or maintain measures for prudential reasons, including in order to preserve financial stability and the integrity of financial markets. The EU and UK are also currently finalising a Memorandum of Understanding that will establish a framework for regulatory cooperation on financial services.

Competition and subsidies

The agreements between t he EU and UK provide for a level playing field for open and fair competition and aim to ensure that trade and investment are in line with sustainable development. The EU and the UK are free to choose how they achieve this objective, but they have committed to maintain and improve their respective high standards, notably by ensuring an effective control on public subsidies to avoid that they are granted where they have or could have a material effect on trade or investment between the Parties.

Trade

The UK is the EU's third biggest trading partner (9.8%), after the United States and China. The EU is the UK's biggest trading partner, accounting for 40% of UK foreign trade in goods in 2022. The EU's surplus trade in goods with the UK amounted to €113 billion. The EU's main exports of goods to the UK include: machinery and transport equipment (36%), chemical products (16.8%), foodstuffs, beverages, and tobacco (8%), and base metals (5.8%). The UK's main exports of goods to the EU include: mineral products (27.6%), machinery and transport equipment (23.4%), and chemical products (15.9%). 2021 data for trade in services reveal a balance in favour of the EU: €204.5 billion in EU exports compared to €175 billion in imports from the UK. Other business services, travel, telecommunications, financial services and transport are the most important flows in both directions. Investment flows from the UK to the EU have been stable in recent years, while EU flows to the UK have declined. The stock of mutual investments remains among the highest in the world. (Source: DG Trade)For the assessment of evolution of trade flows see the European Commission’s report on the implementation and application of the Trade and Cooperation Agreement.

The EU and the UK share a history of leading the fight against climate change. They have set out ambitious long-term targets to reduce their emissions and developed some of the world’s most stringent policies and instruments to reach their objectives.  

In their bilateral agreements, the EU and the UK confirmed their commitment to these policies, with carbon pricing as one important element. They agreed to maintain a high ambition for the environment and to cooperate in setting strong international standards. The new relationship also foresees a mutual commitment to facilitate trade and investment in the areas of energy and raw materials, and to support cost-efficient delivery, security of supply and environmental sustainability. Achieving these objectives will require major investments in science and innovation, for which the EU and UK are planning to join forces through the UK’s participation in the EU’s Horizon Europe programme.

The EU-UK Trade and Cooperation Agreement contains important elements on Common Foreign and Security Policy (CFSP), such as: provisions on cooperation in supporting democracy, the rule of law, human rights, prevention and prosecution of serious crimes of concern to the international community, climate change, disarmament and non-proliferation of weapons of mass destruction, the fight against the trafficking of small arms and light weapons, counter-terrorism and cybersecurity. The EU and the UK also agreed a Security of Information Agreement, which complements the TCA and enables the exchange and protection of classified information.

In foreign policy and external relations, the EU and the UK follow common principles and share common values. Cooperation on these matters can benefit the advancement of multilateralism and help address common security challenges. The EU is looking forward towards a close cooperation with the UK, including in the UN and other multilateral structures.