A historic trade and security agreement between the United Kingdom and the European Union has been finalised on Christmas Eve, just a week before the end of the Brexit transition period. The deal, which runs to 2,000 pages, will allow tariff-free trade in goods and close police and judicial cooperation once the UK leaves the single market and customs union on 31 December.
The agreement was announced following a final telephone call between Prime Minister Boris Johnson and European Commission President Ursula von der Leyen. A Downing Street spokesperson said: “The deal is done. Everything that the British public was promised during the 2016 referendum and in the general election last year is delivered by this deal. We have taken back control of our money, borders, laws, trade and our fishing waters.”
Von der Leyen struck a more reflective tone, saying: “It was a long and winding road, but we have got a good deal to show for it. It is fair. It is a balanced deal. And it is the right and responsible thing to do for both sides.” She added: “I know this is a difficult day for some and to our friends in the United Kingdom, I want to say parting is such sweet sorrow.”
The agreement secures zero-tariff and zero-quota trade on goods worth £668bn in 2019, but businesses will still face significant costs from 1 January as border checks are introduced and free movement for UK nationals ends. The Downing Street spokesperson insisted the UK would be “no longer in the lunar pull of the EU”, with no role for the European Court of Justice and a points-based immigration system.
The deal avoids a no-deal exit, which the Office for Budget Responsibility had warned could reduce Britain’s economic output by £40bn in 2021 and cost more than 300,000 jobs. The UK left the EU on 31 January but has remained in the single market and customs union during the transition period, which ends on 31 December.
Prime Minister Johnson briefed his cabinet late on Wednesday night, while the European Research Group of Conservative MPs said it would ask a panel of lawyers to scrutinise the terms before giving its support.
