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Trade negotiation between the UK and the EU

Trade negotiations between the UK and the EU took place after Brexit between the United Kingdom and the European Union for a trade agreement to make trade easier than it might have been without such a deal. The deal would cover both tariff and non-tariff barriers to trade. The negotiations formally ended on 24 December 2020 with an agreement approved in principle by the UK Prime Minister (on behalf of the UK) and (on behalf the EU) the President of the European Commission.[1] The result was the EU–UK Trade and Cooperation Agreement (TCA).

This article is about trade negotiations between the United Kingdom and the European Union. For the resulting agreement, see EU–UK Trade and Cooperation Agreement.

Having left the European Union on 31 January 2020 with an eleven-month transition period, the United Kingdom left the European Single Market and European Union Customs Union with effect from 1 January 2021.[2]


During the Brexit negotiations in 2017 (of the withdrawal agreement), the two sides agreed that trade negotiation could only start after the UK's withdrawal, because such negotiations could not happen when the UK still has a veto right within the EU.[3] For this and other reasons, a transition period after Brexit day was defined to allow those negotiations. The transition period started on 1 February 2020, in accordance with the withdrawal agreement. The transition period was scheduled to end on 31 December 2020, a deadline which could have been extended for two years, if requested by 30 June 2020.[4] The British government declared that it would not apply for any such extension,[5] and did not do so. In addition, it declared that the only kind of trade deal the UK is interested in, if any, is a Canadian-style trade deal.[6][7] A trade deal facilitates EU–UK trade, which accounts for 49% of international UK trade.[2] A Canadian-style trade deal offers the UK a reduction on most custom tariffs between the EU and the UK, but without eliminating VAT, customs and phytosanitary checks.[2] The arrangements for its dominant financial services sector are of particular importance to the UK.[6]

UK trade with the rest of the EU before Brexit[edit]

The rest of the EU (EU27) was the UK's largest trading partner before Brexit: In 2018, the bloc made up 45% of UK exports and 53% of UK imports.[10] Outside EU, the biggest trading partner of the UK is USA, which in 2018 made up 19% of UK exports and 11% of UK imports.[10]


For the EU27, the UK is its second largest export market (after USA), and third largest import market (after China and USA).[11]

Expected consequences[edit]

According to the UN Conference on Trade and Development, a trade agreement between the UK and the EU would help limit the drop of exports from UK to EU to 9%, while the expected decrease would be 14% in case of no deal.[15]

Draft treaty texts[edit]

On 20 March 2020, the European Union released a draft legal text, outlining details of the UK–EU agreement they would like to see.[94] On 19 May 2020, the United Kingdom released its counterpart draft text.[95]

The large (the "Farage Garage"), being developed near Junction 10A of the M20, about 10 miles (16 km) from the Port of Dover.

Sevington customs clearance facility and lorry park

Witness: Michel Barnier, Head of Task Force for Relations with the United Kingdom. (23 June 2020) (PDF)

House of Lords Select Committee on the EuropeanUnion : Oral evidence: Progress of UK-EU future relationship

(European Commission, 9 July 2020) (PDF)

Getting ready for changes: Communication on readiness at the end of the transition period between the European Union and the United Kingdom

European Union initial draft: (20 March 2020)

EU – UK CFTA (Draft)

United Kingdom initial draft: (undated, public release 19 May 2020)

UK – EU CFTA (Draft)

Catherine Bernard and Anand Menon, ed. (December 2018). (PDF). UK in a Changing Europe. Retrieved 21 October 2020.

"What would 'trading on WTO terms' mean?"

Professor Philomena Murray and Dr Margherita Matera (19 October 2020). . UK in a Changing Europe. Retrieved 21 October 2020. (see also Australia–European Union relations)

"'Australia-style': a model for [UK] relations with Europe"

Integration Office FDFA/FDEA, Swiss Confederation, ed. (August 2009). (PDF). (Summary brochure)

"Bilateral agreements: Switzerland–EU"