EU lawmakers OK post-Brexit free trade deal
European Commissioner for Economy Paolo Gentiloni speaks during a session at the European Parliament in Brussels on Wednesday.
European Union leaders, their British counterparts and European businesses expressed hope yesterday that the final ratification of the post-Brexit trade deal will open a new, positive era of cooperation despite the many divisive topics remaining between the former partners.
After European lawmakers overwhelmingly ratified the agreement ensuring that trade continues between the two sides without tariffs and quotas, UK Prime minister Boris Johnson said the vote marked the “final step in a long journey, providing stability to our new relationship with the EU as vital trading partners, close allies and sovereign equals.”
European Commission President Ursula von der Leyen said the accord’s “faithful implementation is essential” while EU Council chief Charles Michel welcomed the beginning of a “new era.”
Relations between the EU and the UK have been strained since a Brexit transition period ended on January 1. The two sides have argued this year over issues ranging from violations of the so-called Northern Ireland protocol, COVID-19 vaccine supplies to the full diplomatic recognition of the EU in Britain.
EU lawmakers approved the final ratification of the deal nearly five years after Britain decided to leave the bloc. The deal, which was finalized on Christmas Eve, had already been ratified by the UK Parliament and conditionally came into force pending the European Parliament’s approval, which marks the final legal hurdle.
Lawmakers at the European Parliament voted 660-5 with 32 abstentions to endorse the free trade agreement. Voting took place on Tuesday but results were not announced until yesterday morning.
EU legislators said in a resolution accompanying their consent that the UK’s withdrawal from the EU was a “historic mistake, as no third country can enjoy the same benefits as an EU member.”
The United Kingdom joined the bloc in 1973, and its citizens decided in a June 2016 referendum to pull out. In a debate ahead of Tuesday’s vote, many EU lawmakers rued Britain’s departure but insisted that approving the text was the best option to avoid economic disruptions and ensure the integrity of the EU’s single market.
While the long-term effects of Brexit on trade remain to be seen, BusinessEurope, a lobby group representing enterprises in the EU said the ratification brings “clarity and legal certainty.”
“The UK is the third biggest trading partner of the EU, which makes this deal one of the most important trade agreements the EU has ever finalized,” said BusinessEurope President Pierre Gattaz. “The positive vote of the European Parliament removes a major element of uncertainty, while companies on both sides are still adjusting to the new reality of trading while struggling with COVID-19 challenges.”
British exports to the EU plummeted 5.7 billion pounds (US$8 billion) in January compared to the previous month and recovered by 3.7 billion pounds in February. Imports also saw a sharp decline in January and a weaker rebound in February. The British government has downplayed the impact of Brexit, saying coronavirus restrictions played a role.
Amid ongoing tensions between London and Brussels over Northern Ireland trade rules, the EU Parliament also said the agreement will provide extra legal tools to “prevent and protect against unilateral divergence from the obligations to which both parties signed up.”
