Conclusions and recommendations
The deal
1.We welcome the fact that both sides managed to reach an agreement in principle on Thursday 24 December 2020. We pay tribute to the hard work and dedication of both parties’ negotiating teams who have managed to conclude a deal in a much shorter timeframe than many expected and in the face of all the difficulties created by the global pandemic. (Paragraph 4)
2.Commencing 2021 with this deal in place is significantly better than starting it without one. Securing the Trade and Cooperation Agreement means that as the UK leaves the Single Market and Customs Union, UK businesses and consumers will not have to face the economically damaging consequences of tariffs on 1 January 2021 that would have been the result of no-deal. This Agreement is important in its own right, but its significance as the basis of the UK’s future relationship with the EU should not be underestimated. The UK’s relationship with the EU will always be significant because of the interconnectedness of our markets, our geographic proximity and our longstanding cooperation in many areas. (Paragraph 5)
3.The UK and the EU will embark on a long-term relationship that recognises the parties’ equality of sovereignty as much as it recognises their common interests. Having an agreed deal in place will make it much easier to build the kind of relationship the UK and the EU will need, in the coming years, as both parties explore opportunities for further cooperation on trade and security matters, while at all times continuing to respect the independence of each other’s legal orders. (Paragraph 6)
4.This deal is important, but businesses, traders and communities need to understand that it heralds significant change in the UK’s relationship with the EU; it does not preserve the arrangements in place before or during the transition period. It is imperative that the Government communicates the coming changes clearly so that businesses can take the steps they need to take in order to comply with the new arrangements. We urge all relevant authorities to be as flexible as possible in their enforcement of the new arrangements in the coming weeks to support people through the new procedures rather than punishing them for unintended non-compliance. (Paragraph 25)
Next steps
5.The UK Government and the European Commission must move ahead swiftly with implementation, establishing the Agreements’ institutional arrangements and reducing or eliminating any remaining areas of uncertainty, for example: data adequacy and equivalence for financial services. The Government should ensure the terms of the deal and its implications are communicated quickly and clearly, helping them to prepare in the very short amount of time available, given the absence of any phasing in arrangements, so that businesses can reap the benefits of the deal. (Paragraph 29)
6.The Agreement is necessarily complex. It will take time for people to analyse it fully and understand its implications. It will be important that the Agreement and its implementation and application are subject to ongoing scrutiny. We regret that the timing of the deal means there is not enough time for our Committee to scrutinise the deal more fully; we intend to report again in January with more analysis but this will be without the benefit of having had time to take extensive evidence on the deal. Members of the House are being asked to read the deal (published on 26 December), to read the Bill brought forward by the Government to give the deal effect in UK law (due to be made available on 29 December) and to form a judgement on its contents in time to debate and vote on the Bill on 30 December. There is no alternative given where we are but that both the Government and the EU Commission have put parliaments in this position is a matter of deep concern. (Paragraph 31)
Published: 30 December 2020