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BBC News has obtained a full copy of the post-Brexit trade deal between the UK and the EU, defining the shape of their relationship for years to come. Parliament will vote on the plan next week, but so far Downing Street has only released a brief summary, rather than the full document. Our economic editor, Faisal Islam, reviewed the details.
Late on Christmas Eve, the UK government and European lawyers worked hard to complete the process of updating the text of the post-Brexit trade deal into formal language, a process known as legal cleaning.
For no matter how much relief there is over the broad outlines of this deal, there are nearly 1,300 pages of legal text that will determine every aspect of the hundreds of billions of dollars in trade between the UK and the EU.
Some of the thorniest negotiating points were incorporated into the final text.
Innocent and obscure sounding articles and appendices could have a huge impact on industry and government policy.
For example, restrictions offsetting unfair corporate subsidies “do not apply” in situations such as natural disasters, exempting the EU’s current huge pandemic support program for aviation, aerospace, climate change and electric cars.
A late compromise
On electric cars, an appendix reveals a late compromise.
The EU had sought to offer duty-free access only to British cars made mainly with European parts. This will now be phased over six years, but is less generous than the UK is asking for.
That should be about enough for Japanese owners of huge UK Nissan factories and current Toyota production, but raises questions about future investment cycles.
There is a clear commitment not to lower standards on the environment, workers’ rights and climate change from those that currently exist and the mechanisms to enforce them.
But there is also a mutual right to “rebalance” the agreement if there are “significant differences” in the future that “may” impact trade. “
These go far beyond standard free trade agreements such as those between the EU and Canada or Japan, reflecting the UK’s history in the single market.
The text reads as if these mechanisms are designed to be used and created to ensure that both sides stay close to the other’s regulatory orbit.
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