LONDON: Britain and the European Union struck a hard-fought trade agreement on Thursday, settling a bitter divorce that stretched over more than four years and setting the terms for a post-Brexit future as close neighbours living apart.
The deal, which must be ratified by the British and European Parliaments, came together in Brussels after 11 months of grinding negotiations, culminating in a last-minute haggle over fishing rights that stretched into Christmas Eve, just a week before a year-end deadline.
Despite running to thousands of pages, the agreement leaves critical parts of the relationship to be worked out later. And it will not prevent some disruption to trade across the English Channel, since British exports will still be subjected to some border checks, adding costs for companies and causing potential delays at ports. But it is nonetheless a landmark in the long-running Brexit drama — the bookend to Britain’s departure from the EU in January and a blueprint for how the two sides will coexist after severing deep ties built over a 47-year relationship.
“It was a long and winding road, but we have got a good deal to show for it,” said Ursula von der Leyen, the president of the European Commission, the bloc’s executive arm. “This moment marks the end of a long voyage.” If approved, the agreement would take effect January 1, 4 1/2 years after a narrow majority of Britons voted to leave the EU.
For PM Boris Johnson of Britain, who won a landslide election victory in 2019 vowing to “get Brexit done,” the deal allows him to fulfill that promise. But to get there, Johnson had to make significant concessions, especially on rules that cover state aid to businesses and rights to fish in British waters. Still, he sounded triumphant when speaking shortly after the announcement of the deal. “We’ve taken back control of our laws and our destiny,” Johnson said at 10 Downing Street.
Johnson described the last-minute agreement as a “jumbo” free trade deal along the lines of that done between the European Union and Canada. The deal will also support the peace in Northern Ireland - a priority for US President-elect Joe Biden, who had warned Johnson that he must uphold the 1998 Good Friday Agreement. EU member Ireland said the deal, which the Commission website said would be published soon, protected its interests. The trade pact will not cover services, which make up 80% of the British economy, including banking industry that positions London as the only financial capital to rival New York. Access to the EU market for UK-based banks, insurers and asset managers will become patchy at best.