This Decision shall enter into force on the day of its adoption.

The President of the Council is hereby authorised to designate the person(s) empowered to sign the Agreements on behalf of the Union.

The declarations attached to this Decision shall be approved on behalf of the Union.

The President of the Council shall designate the person empowered to proceed, on behalf of the Union, to give the notification provided for in Article LAW.OTHER.134 [Notifications] and Article SSC.11 of the Protocol on Social Security Coordination of the Trade and Cooperation Agreement.

(b) first day of the month following that in which both Parties have notified each other that they have completed their respective internal requirements and procedures for establishing their consent to be bound.

(a) 28 February 2021 or another date as decided by the Partnership Council; or

Subject to reciprocity, the Trade and Cooperation Agreement between the European Union and European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part, and the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information shall be applied on a provisional basis as from 1 January 2021. Provisional application shall cease on one of the following dates, whichever is the earliest:

3. The Commission may also adopt measures reinstating the rights and obligations under the Trade and Cooperation Agreement as they existed prior to the adoption of measures foreseen in paragraph 1.

2.The Commission shall fully inform the Council in a timely manner of its intention to adopt the proposed measures set out in paragraph 1 and take into account the possible views expressed. The Commission shall also inform the European Parliament, as appropriate.

(i)an offer or acceptance of temporary compensation or the suspension of obligations in the context of compliance following an arbitration or panel of experts procedure under Article INST.24 [Temporary Remedies], except as provided in Regulation (EU) No 654/2014;

(h)the suspension or termination of the participation of the United Kingdom in Union programmes, as set out in Article UNPRO.3.1 [Suspension of the participation of the United Kingdom in a Union programme by the European Union] and Article UNPRO.3.20 [Termination of the participation of the United Kingdom in a Union programme by the European Union];

(g)compensatory measures as set out in Article FISH.9 [Compensatory measures in case of withdrawal or reduction of access]

(f)the application of remedial measures as set out in Article FISH.14 [Remedial measures and dispute resolution];

(e)the refusal, revocation, suspension or limitation of operating authorisation of an airline, Article AIRTRN.8 [Refusal, revocation, suspension or limitation of operating authorisation];

(c)the application of rebalancing measures and counter-measures as set out in Article LPFOFCSD.9.4 [Rebalancing];

(b)the application of remedial measures and the suspension of obligations as set out in Article LPFOFCSD.3.12 [Remedial measures];

(a)the suspension of the relevant preferential treatment of the product(s) concerned as set out in Article GOODS.19 [Measures in case of breaches or circumvention of customs legislation];

1.Until a specific legislative act regulating the adoption of such measures is adopted and enters into force in the Union, the decision of the Union to take the following measures under the Trade and Cooperation Agreement shall be taken by the Commission in accordance with the conditions set out in the corresponding provisions of the Trade and Cooperation Agreement as regards:

2.The Commission shall take those proposed decisions in accordance with the procedure laid down in Article 4(2) of this Decision.

(f)suspend totally or partially, for all or some of the products listed in Appendix C to Annex TBT-2 [on Medicinal Products], the recognition of inspections and acceptance of official Good Manufacturing Practice documents of the other Party in accordance with paragraph 1 of Article 9 [Suspension] of Annex TBT-2 [Medicinal Products].

(e)suspend recognition of inspections or acceptance official Good Manufacturing Practice documents issued by the United Kingdom and notify the United Kingdom of its intention to apply Article 9 [Suspension] of Annex TBT-2 [Medicinal Products] and enter into consultations with the United Kingdom in accordance with paragraph 3 of Article 8 [Changes to the applicable legislation] of Annex TBT-2 [Medicinal Products];

(d)adopt any necessary implementing arrangements for the exchange of official Good Manufacturing Practice documents with the authority of the United Kingdom under Article 6 [Exchange of official GMP documents] of Annex TBT-2 [on Medicinal Products] and for the exchange of information with the authority of the United Kingdom regarding inspections of manufacturing facilities under Article 7 [Safeguards] of Annex TBT-2 [Medicinal Products];

(c)accept official Good Manufacturing Practice documents issued by an authority of the United Kingdom for manufacturing facilities located outside the territory of the issuing authority and to determine the terms and conditions under which the Union accepts those official Good Manufacturing Practice documents in accordance with paragraphs 3 and 4 of Article 5 [Recognition of inspections] of Annex TBT-2 [Medicinal Products];

(b)suspend the recognition of equivalence in accordance with paragraphs 5 and 6 of Article 3 [Recognition of equivalence] of Annex TBT-4 [Organic Products];

(a)confirm or suspend the recognition of equivalence following the reassessment of equivalence to be carried out by 31 December 2023 in accordance with paragraph 3 of Article 3 [Recognition of equivalence] of Annex TBT-4 [Organic Products];

1.The Commission shall be authorised to take, on behalf of the Union, any decision to:

When the Commission represents the Union in bodies created by the Trade and Cooperation Agreement, it shall inform the Council in a timely manner about the discussions and the outcome of the meetings and of acts adopted by written procedure, and, upon request, shall provide minutes and other documents relating to such meetings or procedure. The Commission shall also inform the European Parliament, as appropriate.

The texts of these Agreements are attached to this Decision.

The signing, on behalf of the Union, of the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information is hereby authorised, subject to the conclusion of the said Agreement.

The signing, on behalf of the Union, for the parts other than those falling under the competence of the European Atomic Energy Community, of the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part, is hereby authorised, subject to the conclusion of the said Agreement.

(16)The Agreements should be signed on behalf of the Union, subject to the fulfilment of the procedures required for their conclusion at a later date.

(15)Due to the very late completion of the negotiations of the Agreements only several days before the end of the transition period, it has not been possible to proceed to the final legal linguistic revision of the texts of the Agreements before their signature. Therefore, starting immediately after the signature of the Agreements, the Parties should proceed to the final legal linguistic revision of the texts of the Agreements in all 24 authentic languages. That legal linguistic revision should be completed at the latest by 30 April 2021. Notwithstanding the previous sentence, the process of final legal revision for the English version of the Agreement should be finalised by the day referred to in Article FINPROV.11(1) [Entry into force and provisional application] if that day is earlier than 30 April 2021. The Parties should then, by exchange of diplomatic notes, establish those legally revised texts of the Agreements in all such languages as authentic and definitive. These revised texts should replace ab initio the signed versions of the Agreements.

(14)Therefore, given the exceptional situation of the United Kingdom with regard to the Union, the urgency of the situation with the transition period ending on 31 December 2020, as well as the need to give sufficient time to the European Parliament and the Council to appropriately scrutinise the texts of the Agreements, the Agreements should be applied on a provisional basis, for a limited period of time as set out in Article FINPROV.11(2) [Entry into force and provisional application] of the Trade and Cooperation Agreement and Article 19 of the Security of Information Agreement.

(13)Being a country that has withdrawn from the Union, the United Kingdom is in a different and exceptional situation with regard to the Union compared to other third countries with which the Union has negotiated and concluded agreements. Under the Withdrawal Agreement, Union law applies to and in the United Kingdom during the transition period, and, at the end of that period, the basis for cooperation with the Member States of the Union is therefore at a very high level, in particular in the areas of the internal market, common fisheries policy, and freedom, security and justice. If the Agreements do not enter into force from 1 January 2021, the cooperation between the Union and the United Kingdom will fall to a level that is neither desirable nor in the Union interest, causing disruptions in the relationship between the Union and the United Kingdom. Such disruptions can be limited through the provisional application of the Agreements.

(12)It is recalled that, in accordance with the negotiating directives of 25 February 2020, the territorial scope of the Trade and Cooperation Agreement concluded between the Union and the United Kingdom does not include Gibraltar. This does not preclude the possibility of separate agreements between the Union and the United Kingdom in respect of Gibraltar in line with the declaration of the European Council and of the Commission included in the minutes of the European Council meeting of 25 November 2018.

(11)Whenever the Union is required to act in order to comply with the provisions of the Agreements, such action is to be taken in accordance with the provisions of the Treaties, while respecting the limits of the powers conferred upon each institution. It is therefore for the Commission to provide the United Kingdom with the information or notifications required in the Agreements, except where the Agreements refer to other specific institutions, bodies, offices and agencies of the Union and to consult the United Kingdom on specific matters. It is also for the Commission to represent the Union before the arbitration tribunal where a dispute has been submitted to arbitration in accordance with the Trade and Cooperation Agreement.

(10)With a view to enable the Union to take rapid and effective action to protect its interests in accordance with the Trade and Cooperation Agreement, and until a specific legislative act regulating the adoption of remedial measures under the Trade and Cooperation Agreement is adopted and enters into force in the Union, the Commission should be empowered to take remedial measures, such as the suspension of obligations under the Trade and Cooperation Agreement or any supplementing agreement, in cases of breaches of certain provisions of the Trade and Cooperation Agreement or non-fulfillement of certain conditions, notably in the areas of trade in goods, level playing field, road transport, air transport, fisheries and Union programmes, as specified in the Trade and Cooperation Agreement, as well as to take appropriate remedial measures, rebalancing measures and countermeasures.

(9)In order to allow the Union to timely react where relevant conditions are no longer met, the Commission should be empowered to take certain decisions suspending benefits granted to the United Kingdom under the Annex on Organic Products and the Annex on Medicinal Products. Prior to doing so, the Commission should inform the representatives of the Member States, who may object to the position presented by the Commission by a blocking minority. The Commission should also be empowered to adopt, in accordance with the same procedure, any other necessary implementing arrangements for the effective functioning of those Annexes.

(8)One or more Member States may request that the Commission representative be accompanied, as part of the Union delegation, by a representative of that or those Member States in a meeting of the Partnership Council and other joint bodies established by the Agreement.

(7)It is appropriate to define the modalities of the Union’s representation in the Partnership Council and the Committees established by the Trade and Cooperation Agreement. The Commission, as provided for in Article 17(1) of the Treaty on European Union (‘TEU’), is to represent the Union and to express the Union’s positions as established by the Council in accordance with the Treaties. The Council is to exercise its policy-making and coordinating functions as provided for in Article 16(1) TEU by establishing the positions to be taken on the Union’s behalf in the Partnership Council and the Committees established by the Trade and Cooperation Agreement. Furthermore, where the Partnership Council or the Committees established by the Trade and Cooperation Agreement are called upon to adopt acts having legal effects, the positions to be taken on the Union’s behalf in these bodies are to be established in accordance with the procedure set out in Article 218(9) TFEU.

(6)The signing of the Trade and Cooperation Agreement as regards matters falling under the competence of the European Atomic Energy Community is subject to a separate procedure.

(5)The Trade and Cooperation Agreement establishes the basis for a broad relationship between the Union and the United Kingdom involving reciprocal rights and obligations, common actions and special procedures. The Security of Information Agreement is a supplementing agreement to the Trade and Cooperation Agreement, intrinsically linked to the latter in particular with regard to its entry into application and termination. The decision on the signing of the Trade and Cooperation Agreement and the Security of Information Agreement (the ‘Agreements’) should therefore be based on the legal basis providing for the establishment of an association allowing the Union to enter into commitments in all areas covered by the Treaties.

(4)The negotiations were completed on 24 December 2020. They resulted in the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part ('the Trade and Cooperation Agreement') and the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information (the 'Security of Information Agreement').

(3)On 25 February 2020, the Council adopted Decision (EU, Euratom) 2020/266 authorising the Commission to open negotiations with the United Kingdom for a new partnership agreement. The negotiations have been conducted in light of the negotiating directives of 25 February 2020.

(2)On 30 January 2020, the Council adopted Decision (EU) 2020/135 on the conclusion of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (the ‘Withdrawal Agreement’). The Withdrawal Agreement entered into force on 1 February 2020.

(1)On 29 March 2017, the United Kingdom notified the European Council pursuant to Article 50 of the Treaty on European Union (‘TEU’) of its intention to withdraw from the European Union and from the European Atomic Energy Community.

Having regard to the proposal from the European Commission,

Having regard to the Treaty on the Functioning of the European Union (‘TFEU’), and in particular Article 217, in conjunction with Article 218(5) and the second subparagraph of Article 218(8) thereof,

on the signing, on behalf of the Union, and on provisional application of the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part, and of the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information

The Agreement concerning security procedures for exchanging and protecting classified information sets out rules and modalities for the exchange of classified and non-classified sensitive information. In line with other security of information agreements concluded by the Union with other third countries, the Security of Information Agreement ensures the secure handling of sensitive information, based on the principle of the originator’s consent prior to the release of the information exchanged. The Security of Information Agreement applies as from the date of application of the Trade and Cooperation Agreement, or from the date the Parties have notified each other that they have completed their respective internal requirements and procedures to release classified information under that agreement, whichever is later.

The Protocol on Social Security Coordination sets out a number of social security coordination measures aimed at protecting the social security entitlements of EU citizens and UK nationals in a cross-border situation involving the UK and the EU as of 1 January 2021. Third-country nationals, stateless persons and refugees are also protected. A wide range of benefits is covered, including old-age and survivors’ pensions, death grants, sickness benefits, maternity / paternity benefits related to the birth of a child, benefits in respect of accidents at work or pre-retirement benefits. The Protocol ensures that the social security coordination arrangements established therein are based on the principle of non-discrimination between the Member States of the Union.

Two Protocols provide for administrative cooperation and combating fraud in the field of Value Added Tax, mutual assistance for the recovery of claims relating to taxes and duties and for mutual administrative assistance in customs matters.

Part Seven (Final Provisions) contains final provisions, including on the entry into force, review and termination of the Trade and Cooperation Agreement.

On dispute settlement, if a disagreement arises and a solution cannot be found between the Parties, the Trade and Cooperation Agreement foresees that an independent arbitration tribunal can be established to settle the matter through a binding ruling. This dispute settlement mechanism applies to most areas of the Trade and Cooperation Agreement, including level playing field and fisheries. It is accompanied by credible and robust enforcement and compliance mechanisms, including the possibility to suspend the complaining party’s obligations under the Trade and Cooperation Agreement e.g. to reintroduce tariffs and/or quotas. Furthermore, each Party will under certain conditions be able to cross-retaliate whenever another Party does not comply with the ruling of the arbitration tribunal. For instance, a persisting breach by one Party that concerns a specific economic sector will allow the other Party to retaliate with measures in other economic sectors. Each Party may also unilaterally take appropriate safeguard measures in cases of serious economic, societal or environmental difficulties of a sectorial or regional nature.

Part Six (Dispute Settlement and Horizontal Provisions) includes three titles: Title I (Dispute settlement), Title II (Basis for cooperation) and Title III (Fulfilment of obligations and safeguard measures).

The legal bases (basic acts) of the Union programmes and activities in which the United Kingdom may participate have still not been adopted. However, there is a common understanding between the United Kingdom and the Union on the programmes in which the United Kingdom may participate and under which specific conditions, subject to the conditions provided in the definitive legal bases. Therefore, a Joint Declaration attached to the Trade and Cooperation Agreement provides a framework for the protocols that will be added to that agreement by the Specialised Committee on Participation in Union Programmes when the legal bases of those programmes will be adopted.

Part Five (Participation in Union Programmes, Sound Financial Management and Financial Provisions) sets out provisions regarding the United Kingdom’s continued participation as a third country in a number of flagship Union programmes, subject to financial contribution by the United Kingdom to the Union budget. The precise list of such programmes will be adopted later by the Specialised Committee on Participation in Union Programmes. In addition the Specialised Committee on Participation in Union Programmes may also set up a list of services provided through the implementation of Union Programmes to which the United Kingdom may have access.

Part Four (Thematic Cooperation) includes two titles: Title I: Health Security and Title II; Cyber Security. Part Four sets out provisions for cooperation between the Parties on health security and cybersecurity issues, including through temporary and limited participation of the United Kingdom in a number of Union structures, only upon invitation by the Union, and provided specific common threats arise.

The close and comprehensive police and judicial cooperation is underpinned by guarantees to respect democracy and the rule of law, to protect effectively fundamental rights and freedoms of individuals, including those enshrined in the European Convention on Human Rights and by giving effect domestically to them, as well as commitments by both Parties to uphold high levels of data protection standards. This was a particularly important demand from the Union side with a view to ensuring that both the security and the fundamental rights of its citizens are protected. Part Three also provides for specific provisions on suspension of cooperation in case of serious and systemic deficiencies in ensuring any of these safeguards, as well as a dedicated dispute settlement mechanism.

Part Three respects the United Kingdom’s status as a non-Union member outside of the Schengen area. For instance, the United Kingdom will no longer have direct, real-time access to sensitive Union databases that support the Union area of freedom, security and justice – as this is provided only to Member States and very closely associated countries that accept all accompanying obligations.

–Anti-money laundering: provisions for cooperation on combating money laundering and the financing of terrorism.

–Mutual assistance: arrangements to facilitate and supplement the Council of Europe Conventions in criminal matters, e.g. through streamlined procedures, time limits, and technological infrastructures, on a wide range of measures, including freezing and confiscating property;

–Surrender: enabling the swift surrender of criminals between the Member States of the Union and the United Kingdom through streamlined procedures, strict deadlines, robust safeguards (including appropriate grounds for refusal of surrender), procedural rights and judicial control;

–Europol and Eurojust: effective cooperation between the United Kingdom and Europol and Eurojust, in line with the rules for cooperation with third countries established in Union legislation;

–Data exchange: arrangements for timely, effective and efficient exchange of air passenger data (known as Passenger Name Records or PNR), DNA, fingerprint and vehicle registration data (so-called ‘Prüm data’ – which have never before been exchanged between the Union and a non-Schengen third country) criminal record information and operational information – complementing international channels, such as Interpol;

Part Three (Law Enforcement and Judicial Cooperation in Criminal Matters) sets out a framework for law enforcement and judicial cooperation in criminal matters. It recognises the need for strong cooperation between national police and judicial authorities and also Union agencies and bodies, in particular for fighting and prosecuting cross-border crime and terrorism.

Part Two also contains a framework for joint and sustainable management of fish stocks in Union and United Kingdom’s waters. The United Kingdom, as an independent coastal state, will have control over its waters and it will be able to further develop British fisheries, yet European fishermen and women will continue to have access to UK waters to carry out their fishing activities.

On transport, the Trade and Cooperation Agreement provides for continued and sustainable air and road connectivity, while respecting the integrity of the Single Market. It includes provisions to ensure that competition between Union and United Kingdom operators takes place on a level playing field, so that passenger rights and transport safety are not undermined.

On energy, as the United Kingdom will no longer participate in the single electricity market and EU trading platforms, the Trade and Cooperation Agreement creates a new framework for bilateral energy cooperation, aimed at ensuring cost-efficient, clean and secure supplies of energy that are essential to the functioning of both economies, and putting in place new mechanisms to cooperate on renewable energy, in particular in the North Sea, and tackling climate change. Substantive provisions on level playing field and liberalisation are also part of the Agreement, including in terms of conditions for subsidies in the energy sector. As in the other areas, the provisions on energy do not replicate the full benefits of the Single Market for the United Kingdom, taking into account its third-country status.

The Trade and Cooperation Agreement contains provisions aimed at facilitating digital trade, by addressing unjustified barriers, and ensuring an open, secure and trustworthy online environment for businesses and consumers, along with high standards of personal data protection. The Agreement also contains provisions guaranteeing the protection of intellectual property rights. Additionally, it includes provisions on mutual opportunities in the Parties’ respective public procurement markets and on procurement standards going beyond their commitments under the WTO Government Procurement Agreement (GPA).

A significant level of openness for trade in services is also agreed, going beyond the baseline provisions of the WTO General Agreement on Trade in Services (GATS), while reflecting the fact that the United Kingdom no longer benefits from free movement of persons and, hence, from freedom to supply services. United Kingdom’s service providers wanting to offer services in the Union will need to meet all appropriate regulatory requirements in the Union, but they will not be treated any less favourably than Union operators in those areas covered by the Trade and Cooperation Agreement, and vice-versa. United Kingdom’s investors can also establish legal entities in the Union in order to offer services across the single market and vice-versa. The Agreement includes a framework for the future negotiation of recognition agreements in relation to profesional qualifications.

In terms of trade in goods, the provisions in Part Two go beyond recent EU free trade agreements with partners, such as Canada and Japan, by providing for zero tariffs and zero quotas on all goods. To benefit from these exceptional preferences, businesses must ensure that their products originate in the Union or in the United Kingdom. These ‘rules of origin’ are essential to ensure the integrity of the Union market. The Trade and Cooperation Agreement will also facilitate, to the extent permitted by the Union Customs Code, the customs formalities that apply to any third country outside the Customs Union. It will also remove unnecessary technical barriers to trade, yet still ensuring that all United Kingdom’s goods entering the Union fully meet the Union’s high regulatory standards, including on food quality (e.g. sanitary and phytosanitary standards) and product safety.

Part Two sets out a modern, sustainable trade policy. Both Parties commit to common high standards in areas such as labour and social standards, environmental protection, the fight against climate change, including carbon pricing, and relevant standards on tax avoidance and tax transparency. It also contains principles on subsidies to prevent either Party from granting subsidies that have a material effect on trade or investment between the Parties. These agreed standards and principles are associated with domestic enforcement and dispute settlement mechanisms to ensure that businesses from the EU and the UK compete on a level playing field. Part Two foresees that each Party can take unilateral measures as appropriate to protect itself against effects on trade or investment resulting from subsidies or from significant divergences in the respective subsidy control systems or in the respective levels of labour and social, environmental or climate protection.

As follows from its headings and titles, Part Two covers trade in goods and services, as well as a broad range of other areas of economic and broader cooperation, such as investment, competition, tax transparency, energy, air and road transport, non-discrimination with regard to certain mobility arrangements and social security coordination, and fisheries.

–Heading Three: Road Transport, consisting of two titles: Title I (Transport of goods by road) and Title II (Transport of passengers by road);

–Heading One: Trade, consisting of twelve titles: Title I (Trade in goods), Title II (Services and investment), Title III (Digital trade), Title IV (Capital movements, payments, transfers and temporary safeguard measures), Title V (Intellectual property), Title VI (Public procurement), Title VII (Small and medium-sized enterprises), Title VIII (Energy), Title IX (Transparency), Title X (Good regulatory practices and regulatory cooperation), Title XI (Level playing field for open and fair competition and sustainable development), Title XII (Exceptions);

The Partnership Council will oversee the implementation of the agreement. Comprised of representatives of the Union and the United Kingdom at ministerial level, the Partnership Council will meet in different configurations depending on the matter at hand. It will be the forum in which the Parties will discuss any issues that might arise, with the power to take binding decisions by mutual consent. It will be assisted in its work by the Trade Partnership Committee, Trade Specialised Committees and other Specialised Committees.

The governance provisions provide clarity on how the Trade and Cooperation Agreement will be operated and controlled. They have been conceived to be flexible and adaptable to specific needs that may arise in different areas. In view of the scope and complexity of the Trade and Cooperation Agreement, the Union insisted on a single governance framework covering the whole of the Agreement. This provides legal certainty to businesses, consumers and citizens, while avoiding multiple parallel structures and the creation of additional bureaucracy.

Part One sets out the provisions on governance and implementation of the Trade and Cooperation Agreement and establishes joint governance bodies (the Partnership Council, Trade Partnership Committee, Trade Specialised Committees and other Specialised Committees).

Part One (Common and Institutional Provisions) contains the general provisions, principles of interpretation of the Trade and Cooperation Agreement and definitions, and institutional framework.

The Trade and Cooperation Agreement consists of seven Parts (further divided into Headings, Titles, Chapters and Sections), three Protocols and a number of Annexes, as follows:

As regards its territorial scope, the Trade and Cooperation Agreement covers, with respect to the Union, the territories to which the Treaties apply and, with respect to the United Kingdom, the territory of the United Kingdom. The Trade and Cooperation Agreement also provides a limited coverage for the Channel Islands and Isle of Man in what concerns trade in goods and access to waters. In line with the Declarations included in the minutes of the European Council of 25 November 2018 and with the Council negotiating directives, the Trade and Cooperation Agreement does not apply to Gibraltar.

To guarantee compliance with the obligations under the Trade and Cooperation Agreement, there are robust enforcement mechanisms. The Trade and Cooperation Agreement foresees the possibility for the Parties to take swift, autonomous and operational measures to protect their interests, including in particular in the areas of the level playing field (i.e. rebalancing measures, remedial measures) and fisheries (i.e. compensatory measures, remedial measures), as well as, more generally, in cases of serious economic, societal or environmental difficulties of a sectorial or regional nature.

The Trade and Cooperation Agreement establishes an overall governance framework covering all areas of cooperation under the Trade and Cooperation Agreement and under any supplementing agreement, such as the Security of Information Agreement, while certain adaptations are included to respond to justified sectorial needs.

The scope of the Trade and Cooperation Agreement is comprehensive. It includes the areas of interest outlined in the Political Declaration: trade and economic cooperation, law enforcement and judicial cooperation in criminal matters, participation in Union programmes and thematic areas of cooperation. The Trade and Cooperation Agreement does not include arrangements for cooperation in the area of foreign policy, external security and defence, given the position of the United Kingdom not to negotiate nor include such arrangements in the Trade and Cooperation Agreement. The Trade and Cooperation Agreement respects the autonomy of the Union’s decision-making powers and its legal order, the integrity of its Single Market and the Customs Union and the indivisibility of the four freedoms of movement (people, goods, services and capital). It covers not only free trade in goods and services but also ways to prevent distortions and unfair competitive advantages. The Trade and Cooperation Agreement reflects the fact that the United Kingdom is leaving the Union’s system of common rules, supervision and enforcement mechanisms, and can thus no longer enjoy the benefits of membership or of the Single Market.

The envisaged partnership is premised on the recognition of democracy, rule of law and human rights, as well as the fight against climate change and countering proliferation of weapons of mass destruction. A breach of any of these essential elements allows the Parties to terminate or suspend the operation of the Trade and Cooperation Agreement or any supplementing agreement in whole or in part. The Parties also affirm their commitment to ensuring a high level of personal data protection.

The Trade and Cooperation Agreement is a single package that comprises four main components:

The broad and ambitious cooperation between the Union and the United Kingdom envisaged by the Trade and Cooperation Agreement reflects the conclusions and guidelines of the European Council of 23 March 2018 and builds upon the Political Declaration.

In accordance with the Treaties, the Commission will also act on behalf of the Union on all steps of the procedure regarding dispute settlement under Title I of Part Six of the Trade and Cooperation Agreement.

It is important for the Union to be fully able to deploy these enforcement measures rapidly and effectivlely. For this purpose, the Commission should be empowered to suspend obligations under the Trade and Cooperation Agreement in accordance with Article GOODS.19 on measures in case of breaches or circumvention of customs legislation, Article LPFOFCSD.3.12 on remedial measures in the area of level plaing field, Article ROAD.11 on remedial measures in road transport), Article AIRTRN.8 on refusal, revocation, suspension or limitation of operating authorisation in air transport, Article FISH.14 on remedial measures in the area of fisheries, Article FISH.9 on compensatory measures in case of withdrawal or reduction of access, Articles UNPRO.3.1 and UNPRO.3.20 on suspension and termination of the participation of the United Kingdom in a Union programme and Article INST.24 on temporary remedies or to take appropriate safeguard measures in accordance with Article INST.36.

Moreover, to guarantee compliance with the obligations under the Trade and Cooperation Agreement, there are robust enforcement mechanisms. The Trade and Cooperation Agreement provides the possibility for the Parties to take swift, autonomous and operational measures to protect their interests, including in particular in the areas of the level playing field (i.e. rebalancing measures, remedial measures) and fisheries (i.e. compensatory measures, remedial measures), as well as, more generally, in cases of serious economic, societal or environmental difficulties of a sectorial or regional nature.

In order to allow the Union to timely react where relevant conditions are no longer met, the Commission should be empowered to take certain decisions suspending benefits granted to the United Kingdom under the Annex on Organic Products and the Annex on Medicinal Products. Prior to doing so, the Commission should inform the representatives of the Member States, who may object to the position presented by the Commission by a blocking minority. The Commission should also be empowered to adopt, in accordance with the same procedure, any other necessary implementing arrangements for the effective functioning of those Annexes.

In accordance with Article 216(2) TFEU, agreements concluded by the Union are binding upon the institutions of the Union and its Member States.

·Implementation and application of the Trade and Cooperation Agreement in the Union

The Trade and Cooperation Agreement also provides for a role for the Partnership Council and Specialised Committeesin dispute settlement, which is addressed in Title I of Part Six of the Trade and Cooperation Agreement.

The Partnership Council may establish or dissolve Trade Specialised Committees or Specialised Committees, and the Trade Partnership Committee may establish or dissolve Trade Specialised Committees.

(j)The Trade Specialised Committee on Administrative Cooperation in VAT and Recovery of Taxes and Duties.

In the performance of its tasks, the Partnership Council will be assisted by the Trade Partnership Committee, which in turn will be assisted by Trade Specialised Committees, and by other Specialised Committees.

The Partnership Council may adopt decisions in respect of all matters for which the Trade and Cooperation Agreement or any supplementing agreement so provides. The Partnership Council can only take its decisions and make recommendations by mutual agreement between the Union and the United Kingdom. It can in no way restrict the decision-making at Union level. The Union and the United Kingdom may, through the Partnership Council or Specialised Committees, decide to amend certain aspects of the Trade and Cooperation Agreement or of any supplementing agreement, only in those cases specifically provided therein. When the Parties approve such a decision, it has to be subject to their respective applicable internal requirements and procedures.

Title III of Part One of the Trade and Cooperation Agreement establishes a Partnership Council that will oversee the attainment of the objectives of that agreement and of any supplementing agreement. The Partnership Council is comprised of representatives of the Union and of the United Kingdom at ministerial level who will meet at least once a year and will supervise and facilitate the implementation and application of the Trade and Cooperation Agreement and of any supplementing agreement, such as the Security of Information Agreement.

Thus, the legal basis for the proposed Council Decision is Article 217 TFEU, read in conjunction with Articles 218(5) TFEU and the second subparagraph of Article 218(8) TFEU.

The procedural legal basis is Article 218(5) TFEU, read in conjunction with the second subparagraph of Article 218(8) TFEU which provides for unanimity voting in the Council.

The substantive legal basis for the proposed Council Decision on signature is Article 217 TFEU. This legal basis is the most appropriate given the broad scope of the envisaged partnership.

Participation of the United Kingdom in Union programmes will fully respect the basic acts defining the programmes and the existing Union regulations related to financial management such as the Financial Regulation.

The Trade and Cooperation Agreement includes specific titles on Trade and Level playing field standards in the areas of labour, environment, fight against climate change, and sustainable development, which link the economic part of the Trade and Cooperation Agreement to the Union’s overall objectives in sustainable development and specific objectives in the area of labour, environment, and climate change.

All imports from the United Kingdom will have to satisfy Union rules and regulations (e.g. technical rules and product standards, sanitary or phytosanitary rules, regulations on food and safety, health and safety standards, environmental protection, consumer protection).

The Trade and Cooperation Agreement and the Security of Information Agreement fully respect the Treaties and preserve the integrity and the autonomy of the Union legal order. These agreements will not require the Union to amend its rules, regulations or standards in any regulated area. They promote the values, objectives, and interests of the Union, and ensure the consistency, effectiveness and continuity of its policies and actions.

The Trade and Cooperation Agreement sets a solid basis for a mutually beneficial and balanced partnership between the Union and the United Kingdom. It also reflects the fact that, as a non-member of the Union, the United Kingdom does not have the same rights nor enjoy the same benefits as a member country.

The negotiations of the Trade and Cooperation Agreement and the Security of Information Agreement were preceded by the conclusion of the Withdrawal Agreement, which entered into force on 1 February 2020. The Withdrawal Agreement provides for a transition period during which Union law applies to and in the United Kingdom in accordance with that agreement. The transition period will end on 31 December 2020. The Trade and Cooperation Agreement and the Security of Information Agreement aim to regulate the new relationship between the Union and the United Kingdom, and hence to prevent significant disruptions which could otherwise arise in that relationship following the end of the transition period.

Both the European Council guidelines of 23 March 2018 and the Political Declaration called for a close partnership between the Union and the United Kingdom.

The entry into application of the Trade and Cooperation Agreement is a matter of special urgency. The United Kingdom, as a former Member State, has extensive links with the Union in a wide range of economic and other areas. If there is no applicable framework regulating the relations between the Union and the United Kingdom after 31 December 2020, those relations will be significantly disrupted, to the detriment of individuals, businesses and other stakeholders. The negotiations could only be finalised at a very late stage before the expiry of the transition period. Such late timing should not jeopardise democratic scrutiny to be exercised by the European Parliament in accordance with the Treaties. In light of these exceptional circumstances, the Commission proposes to apply the Agreements on a provisional basis until 28 February 2021 or another date as decided by the Partnership Council, or the first day of the month following that in which Parties have notified each other that they have completed their respective internal requirements and procedures for establishing their consent to be bound, whichever is the earliest.

In parallel to the Trade and Cooperation Agreement and the Security of Information Agreement, the Commission has negotiated the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the European Atomic Energy Community for Cooperation on the Safe and Peaceful Uses of Nuclear Energy. The Recommendation for a Council decision on the approval of that agreement is submitted together with this proposal under a separate procedure. In addition to the conclusion of the Agreement for Cooperation on the Safe and Peaceful Uses of Nuclear Energy, that procedure also covers the conclusion of the Trade and Cooperation Agreement as regards matters falling under the competence of the European Atomic Energy Community (in particular, the participation of the United Kingdom as a third country in the Euratom Research Programme and in the European fusion activities, including ITER activities, through its membership, as a third country, in the European Joint Undertaking for ITER and the Development of Fusion Energy – Fusion for Energy).

The Security of Information Agreement is a supplementing agreement to the Trade and Cooperation Agreement and, in accordance with Article COMPROV.2 of the Trade and Cooperation Agreement, constitutes an integral part of the overall bilateral relations between the Union and the United Kingdom as governed by the Trade and Cooperation Agreement and forms part of the overall framework. The Security of Information Agreement is linked to the Trade and Cooperation Agreement by the same date of entry into application and the same termination provision.

The negotiations were completed and the Trade and Cooperation Agreement, together with the Agreement concerning security procedures for exchanging and protecting classified information (the “Security of Information Agreement”), were agreed at the level of the Chief Negotiators in Brussels on 24 December 2020.

Particular attention has been paid to ensuring transparency in the process, in line with the guiding principles endorsed by the Council on 22 January 2020 for transparency in the negotiations on the future relationship. In view of that, all negotiating documents of the Union negotiator (the Commission) shared with the Council, the European Parliament, national parliaments or the United Kingdom were released to the public, within the limits of Union law. Furthermore, the Chief Negotiator kept the Council and the European Council, the European Parliament and national parliaments, as well as the ECOSOC and the Committee of the Regions regularly and fully informed about the developments.

The Commission conducted the negotiations in consultation with the special committee appointed by the Council (the Working Party on the United Kingdom of the Council). Due regard has been given to the resolutions of the European Parliament of 12 February 2020 and 18 June 2020 and the Commission has kept the European Parliament fully informed in accordance with Article 218(10) TFEU, notably via its United Kingdom Coordination Group.

On 25 February 2020, the Council adopted Decision (EU, Euratom) 2020/266 authorising the opening of negotiations with the United Kingdom of Great Britain and Northern Ireland for a new partnership agreement. The Commission was appointed as the Union negotiator. The Council Decision also included an addendum with the directives for the negotiation of a new partnership with the United Kingdom of Great Britain and Northern Ireland (‘negotiating directives’).

Article 184 of the Withdrawal Agreement provides that the Union and the United Kingdom are to use their best endeavours, in good faith and in full respect of their respective legal orders, to take the necessary steps to negotiate expeditiously the agreements governing their future relationship referred to in the Political Declaration and to conduct the relevant procedures for the ratification or conclusion of those agreements, with a view to ensuring that those agreements apply, to the extent possible, as from the end of the transition period.

The political declaration that accompanied the Withdrawal Agreement sets out the framework for the future relationship between the European Union and the United Kingdom (‘Political Declaration’). It establishes the parameters of ‘an ambitious, broad, deep and flexible partnership across trade and economic cooperation with a comprehensive and balanced Free Trade Agreement at its core, law enforcement and criminal justice, foreign policy, security and defence and wider areas of cooperation.’

In its guidelines of 23 March 2018, the European Council restated the Union’s determination to have as close as possible a partnership with the United Kingdom in the future. According to these guidelines, such a partnership should cover trade and economic cooperation as well as other areas, in particular the fight against terrorism and international crime, as well as security, defence and foreign policy. The European Council set those guidelines with a view to the overall understanding of the framework for the future relationship that was to be elaborated in a political declaration accompanying and referred to in the Withdrawal Agreement.

On 30 January 2020, following the consent of the European Parliament, the Council adopted Decision (EU) 2020/135 on the conclusion of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (the ‘Withdrawal Agreement’). The Withdrawal Agreement entered into force on 1 February 2020 and provides for a transition period during which Union law applies to and in the United Kingdom in accordance with that agreement. That period will end on 31 December 2020.

On 29 March 2017, the United Kingdom notified the European Council pursuant to Article 50 of the Treaty on European Union (‘TEU’) of its intention to withdraw from the European Union and from the European Atomic Energy Community.

on the signing, on behalf of the Union, and on provisional application of the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part, and of the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information

EUROPEAN COMMISSION Brussels, 26.12.2020 COM(2020) 855 final/2 COM(2020) 855 final of 25.12.2020 downgraded on 26.12.2020 ANNEX

to the Proposal for a Council Decision on the signing, on behalf of the Union, and on provisional application of the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part, and of the Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland concerning security procedures for exchanging and protecting classified information



TRADE AND COOPERATION AGREEMENT BETWEEN THE EUROPEAN UNION AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, OF THE OTHER PART



PREAMBLE PART ONE: COMMON AND INSTITUTIONAL PROVISIONS Title I: General provisions Title II: Principles of interpretation and definitions Title III: Institutional framework PART TWO: TRADE, TRANSPORT, FISHERIES AND OTHER ARRANGEMENTS

HEADING ONE: TRADE Title I: Trade in goods Title II: Services and investment Title III: Digital trade Title IV: Capital movements, payments, transfers and temporary safeguard measures Title V: Intellectual property Title VI: Public procurement Title VII: Small and medium-sized enterprises Title VIII: Energy Title IX: Transparency Title X: Good regulatory practices and regulatory cooperation Title XI: Level playing field for open and fair competition and sustainable development Title XII: Exceptions HEADING TWO: AVIATION Title I: Air transport Title II: Aviation safety HEADING THREE: ROAD TRANSPORT Title I: Transport of goods by road Title II: Transport of passengers by road HEADING FOUR: SOCIAL SECURITY COORDINATION AND VISAS FOR SHORT-TERM VISITS

Title I: Social security coordination Title II: Visas for short-term visits HEADING FIVE: FISHERIES HEADING SIX: OTHER PROVISIONS PART THREE: LAW ENFORCEMENT AND JUDICIAL COOPERATION IN CRIMINAL MATTERS Title I: General provisions Title II: Exchanges of DNA, fingerprints and vehicle registration data Title III: Transfer and processing of passenger name record data Title IV: Cooperation on operational information Title V: Cooperation with Europol Title VI: Cooperation with Eurojust Title VII: Surrender Title VIII: Mutual assistance Title IX: Exchange of criminal record information Title X: Anti-money laundering and counter terrorist financing Title XI: Freezing and confiscation Title XII: Other provisions Title XIII: Dispute settlement PART FOUR: THEMATIC COOPERATION Title I: Health security

Title II: Cyber security PART FIVE: PARTICIPATION IN UNION PROGRAMMES, SOUND FINANCIAL MANAGEMENT AND FINANCIAL PROVISIONS PART SIX: DISPUTE SETTLEMENT AND HORIZONTAL PROVISIONS Title I: Dispute settlement Title II: Basis for cooperation Title III: Fulfillment of obligations and safeguard measures PART SEVEN: FINAL PROVISIONS ANNEXES ANNEX INST: RULES OF PROCEDURE OF THE PARTNERSHIP COUNCIL AND COMMITTEES ANNEX ORIG-1: INTRODUCTORY NOTES TO PRODUCT-SPECIFIC RULES OF ORIGIN ANNEX ORIG-2: PRODUCT SPECIFIC RULES OF ORIGIN ANNEX ORIG-2A: ORIGIN QUOTAS AND ALTERNATIVES TO THE PRODUCT-SPECIFIC RULES OF ORIGIN IN ANNEX ORIG-2 [PRODUCT-SPECIFIC RULES OF ORIGIN] ANNEX ORIG-2B: TRANSITIONAL PRODUCT-SPECIFIC RULES FOR ELECTRIC ACCUMULATORS AND ELECTRIFIED VEHICLES ANNEX ORIG-3: SUPPLIER’S DECLARATION ANNEX ORIG-4: TEXT OF THE STATEMENT ON ORIGIN ANNEX ORIG-5: JOINT DECLARATION CONCERNING THE PRINCIPALITY OF ANDORRA ANNEX ORIG-6: JOINT DECLARATION CONCERNING THE REPUBLIC OF SAN MARINO ANNEX SPS-1: CRITERIA REFERRED TO IN ARTICLE SPS.19(d) ANNEX TBT-1: MOTOR VEHICLES AND EQUIPMENT AND PARTS THEREOF ANNEX TBT-2: Medicinal Products

ANNEX TBT-3: CHEMICALS ANNEX TBT-4: ORGANIC PRODUCTS ANNEX-TBT-5: TRADE IN WINE ANNEX TBT-XX – ARRANGEMENT REFERRED TO IN ARTICLE TBT.9(4) FOR THE REGULAR EXCHANGE OF INFORMATION IN RELATION TO THE SAFETY OF NON-FOOD PRODUCTS AND RELATED PREVENTIVE, RESTRICTIVE AND CORRECTIVE MEASURES ANNEX TBT-ZZ – ARRANGEMENT REFERRED TO IN ARTICLE TBT.9(5) FOR THE REGULAR EXCHANGE OF INFORMATION REGARDING MEASURES TAKEN ON NON-COMPLIANT NON-FOOD PRODUCTS, OTHER THAN THOSE COVERED BY ARTICLE TBT.9(4) ANNEX CUSTMS-1: AUTHORISED ECONOMIC OPERATORS ANNEX SERVIN-1: EXISTING MEASURES ANNEX SERVIN-2: FUTURE MEASURES ANNEX SERVIN-3: BUSINESS VISITORS FOR ESTABLISHMENT PURPOSES, INTRA-CORPORATE TRANSFEREES AND SHORT-TERM BUSINESS VISITORS ANNEX SERVIN-4: CONTRACTUAL SERVICE SUPPLIERS AND INDEPENDENT PROFESSIONALS ANNEX SERVIN-5: MOVEMENT OF NATURAL PERSONS ANNEX SERVIN-6: GUIDELINES FOR ARRANGEMENTS ON THE RECOGNITION OF PROFESSIONAL QUALIFICATIONS ANNEX PPROC-1: PUBLIC PROCUREMENT ANNEX ENER-1: LISTS OF ENERGY GOODS, HYDROCARBONS AND RAW MATERIALS ANNEX ENER-2: ENERGY AND ENVIRONMENTAL SUBSIDIES ANNEX ENER-3: NON-APPLICATION OF THIRD-PARTY ACCESS AND OWNERSHIP UNBUNDLING TO INFRASTRUCTURE ANNEX ENER-4: ALLOCATION OF ELECTRICITY INTERCONNECTOR CAPACITY AT THE DAY-AHEAD MARKET TIMEFRAME ANNEX AVSAF-1: AIRWORTHINESS AND ENVIRONMENT CERTIFICATION ANNEX ROAD-1: TRANSPORT OF GOODS BY ROAD ANNEX ROAD-2: Model of authorisation for an international regular and special regular service

ANNEX ROAD-3: MODEL OF APPLICATION FOR AN AUTHORISATION FOR AN INTERNATIONAL REGULAR AND SPECIAL REGULAR SERVICE ANNEX ROAD-4: MODEL OF JOURNEY FORM FOR OCCASIONAL SERVICES ANNEX FISH.1 ANNEX FISH.2 ANNEX FISH.3 ANNEX FISH.4: PROTOCOL ON ACCESS TO WATERS ANNEX LAW-1: EXCHANGES OF DNA, FINGERPRINTS AND VEHICLE REGISTRATION DATA ANNEX LAW-2: PASSENGER NAME RECORD DATA ANNEX LAW-3: FORMS OF CRIME FOR WHICH EUROPOL IS COMPETENT ANNEX LAW-4: Forms of serious crime for which Eurojust is competent ANNEX LAW-5: ARREST WARRANT ANNEX LAW-6: Exchange of criminal record information – technical and procedural specifications ANNEX LAW-7: Definition of terrorism ANNEX LAW-8: Freezing and Confiscation ANNEX UNPRO-1: IMPLEMENTATION OF THE FINANCIAL CONDITIONS ANNEX INST: RULES OF PROCEDURE FOR DISPUTE SETTLEMENT ANNEX INST: CODE OF CONDUCT FOR ARBITRATORS PROTOCOL ON ADMINISTRATIVE COOPERATION AND COMBATING FRAUD IN THE FIELD OF VALUE ADDED TAX AND ON MUTUAL ASSISTANCE FOR THE RECOVERY OF CLAIMS RELATING TO TAXES AND DUTIES TITLE I: GENERAL PROVISIONS TITLE II: ADMINISTRATIVE COOPERATION AND COMBATING VAT FRAUD

TITLE III: RECOVERY ASSISTANCE TITLE IV: IMPLEMENTATION AND APPLICATION TITLE V: FINAL PROVISIONS ANNEX TO THE PROTOCOL ON ADMINISTRATIVE COOPERATION AND COMBATING FRAUD IN THE FIELD OF VALUE ADDED TAX AND ON MUTUAL ASSISTANCE FOR THE RECOVERY OF CLAIMS RELATING TO TAXES AND DUTIES PROTOCOL ON MUTUAL ADMINISTRATIVE ASSISTANCE IN CUSTOMS MATTERS PROTOCOL ON SOCIAL SECURITY COORDINATION TITLE I: GENERAL PROVISIONS TITLE II: DETERMINATION OF THE LEGISLATION APPLICABLE TITLE III: SPECIAL PROVISIONS CONCERNING THE VARIOUS CATEGORIES OF BENEFITS TITLE IV: MISCELLANEOUS PROVISIONS TITLE V: FINAL PROVISIONS ANNEX SSC-1: CERTAIN BENEFITS IN CASH TO WHICH THE PROTOCOL SHALL NOT APPLY ANNEX SSC-2: RESTRICTION OF RIGHTS TO BENEFITS IN KIND FOR MEMBERS OF THE FAMILY OF A FRONTIER WORKER ANNEX SSC-3: MORE RIGHTS FOR PENSIONERS RETURNING TO THE COMPETENT STATE ANNEX SSC-4: CASES IN WHICH THE PRO RATA CALCULATION SHALL BE WAIVED OR SHALL NOT APPLY ANNEX SSC-5: BENEFITS AND AGREEMENTS WHICH ALLOW THE APPLICATION OF ARTICLE SSC.49 [Overlapping of benefits of the same kind] ANNEX SSC-6: SPECIAL PROVISIONS FOR THE APPLICATION OF THE LEGISLATION OF THE MEMBER STATES AND OF THE UNITED KINGDOM ANNEX SSC-7: IMPLEMENTING PART ANNEX SSC-8: TRANSITIONAL PROVISIONS REGARDING THE APPLICATION OF ARTICLE SSC.11 [Detached workers]





TRADE AND COOPERATION AGREEMENT BETWEEN THE EUROPEAN UNION AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, OF THE OTHER PART PREAMBLE THE EUROPEAN UNION AND THE EUROPEAN ATOMIC ENERGY COMMUNITY AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, REAFFIRMING their commitment to democratic principles, to the rule of law, to human rights, to countering proliferation of weapons of mass destruction and to the fight against climate change, which constitute essential elements of this and supplementing agreements, RECOGNISING the importance of global cooperation to address issues of shared interest, RECOGNISING the importance of transparency in international trade and investment to the benefit of all stakeholders, SEEKING to establish clear and mutually advantageous rules governing trade and investment between the Parties, CONSIDERING that in order to guarantee the efficient management and correct interpretation and application of this Agreement and any supplementing agreement as well as compliance with the obligations under those agreements, it is essential to establish provisions ensuring overall governance, in particular dispute settlement and enforcement rules that fully respect the autonomy of the respective legal orders of the Union and of the United Kingdom, as well as the United Kingdom’s status as a country outside the European Union, BUILDING upon their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization, done on 15 April 1994, and other multilateral and bilateral instruments of cooperation, RECOGNISING the Parties’ respective autonomy and rights to regulate within their territories in order to achieve legitimate public policy objectives such as the protection and promotion of public health, social services, public education, safety, the environment including climate change, public morals, social or consumer protection, animal welfare, privacy and data protection and the promotion and protection of cultural diversity, while striving to improve their respective high levels of protection, BELIEVING in the benefits of a predictable commercial environment that fosters trade and investment between them and prevents distortion of trade and unfair competitive advantages, in a manner conducive to sustainable development in its economic, social and environmental dimensions, RECOGNISING the need for an ambitious, wide-ranging and balanced economic partnership to be underpinned by a level playing field for open and fair competition and sustainable development, through effective and robust frameworks for subsidies and competition and a commitment to uphold their respective high levels of protection in the areas of labour and social standards, environment, the fight against climate change, and taxation, RECOGNISING the need to ensure an open and secure market for businesses, including medium-sized enterprises, and their goods and services through addressing unjustified barriers to trade and investment, NOTING the importance of facilitating new opportunities for businesses and consumers through digital trade, and addressing unjustified barriers to data flows and trade enabled by electronic means, whilst respecting the Parties' personal data protection rules, DESIRING that this Agreement contributes to consumer welfare through policies ensuring a high level of consumer protection and economic well-being, as well as encouraging cooperation between relevant authorities,

CONSIDERING the importance of cross-border connectivity by air, by road and by sea, for passengers and for goods, and the need to ensure high standards in the provision of transportation services between the Parties, RECOGNISING the benefits of trade and investment in energy and raw materials and the importance of supporting the delivery of cost efficient, clean and secure energy supplies to the Union and the United Kingdom, NOTING the interest of the Parties in establishing a framework to facilitate technical cooperation and develop new trading arrangements for interconnectors which deliver robust and efficient outcomes for all timeframes, NOTING that cooperation and trade between the Parties in these areas should be based on fair competition in energy markets and non-discriminatory access to networks, RECOGNISING the benefits of sustainable energy, renewable energy, in particular offshore generation in the North Sea, and energy efficiency, DESIRING to promote the peaceful use of the waters adjacent to their coasts and the optimum and equitable utilisation of the marine living resources in those waters including the continued sustainable management of the shared stocks, NOTING that, the United Kingdom withdrew from the European Union and that with effect from 1 January 2021, the United Kingdom is an independent coastal State with corresponding rights and obligations under international law, AFFIRMING that the sovereign rights of the coastal States exercised by the Parties for the purpose of exploring, exploiting, conserving and managing the living resources in their waters should be conducted pursuant to and in accordance with the principles of international law, including the United Nations Convention on the Law of the Sea of 10 December 1982, RECOGNISING the importance of the coordination of social security rights enjoyed by persons moving between the Parties to work, to stay or to reside, as well as the rights enjoyed by their family members and survivors, CONSIDERING that cooperation in areas of shared interest, such as science, research and innovation, nuclear research or space, in the form of the participation of the United Kingdom in the corresponding Union programmes under fair and appropriate conditions will benefit both Parties, CONSIDERING that cooperation between the United Kingdom and the Union relating to the prevention, investigation, detection or prosecution of criminal offences and to the execution of criminal penalties, including the safeguarding against and prevention of threats to public security, will enable the security of the United Kingdom and the Union to be strengthened, DESIRING that an agreement is concluded between the United Kingdom and the Union to provide a legal base for such cooperation, ACKNOWLEDGING that the Parties may supplement this Agreement with other agreements forming an integral part of their overall bilateral relations as governed by this Agreement and that the Agreement on Security Procedures for Exchanging and Protecting Classified Information is concluded as such a supplementing agreement, and enables the exchange of classified information between the Parties under this Agreement or any other supplementing agreement, HAVE AGREED AS FOLLOWS:



PART ONE: COMMON AND INSTITUTIONAL PROVISIONS Title I: General provisions

Article COMPROV.1: Purpose This Agreement establishes the basis for a broad relationship between the Parties, within an area of prosperity and good neighbourliness characterised by close and peaceful relations based on cooperation, respectful of the Parties’ autonomy and sovereignty. Article COMPROV.2: Supplementing agreements 1. Where the Union and the United Kingdom conclude other bilateral agreements between them, such agreements shall constitute supplementing agreements to this Agreement, unless otherwise provided for in those agreements. Such supplementing agreements shall be an integral part of the overall bilateral relations as governed by this Agreement and shall form part of the overall framework. 2. Paragraph 1 also applies to: (a)agreements between the Union and its Member States, of the one part, and the United Kingdom, of the other part; and (b)agreements between Euratom, of the one part, and the United Kingdom, of the other part. Article COMPROV.3: Good faith 1. The Parties shall, in full mutual respect and good faith, assist each other in carrying out tasks that flow from this Agreement and any supplementing agreement. 2. They shall take all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations arising from this Agreement and from any supplementing agreement, and shall refrain from any measures which could jeopardise the attainment of the objectives of this Agreement or any supplementing agreement. Title II: Principles of interpretation and definitions Article COMPROV.13: Public international law 1. The provisions of this Agreement and any supplementing agreement shall be interpreted in good faith in accordance with their ordinary meaning in their context and in light of the object and purpose of the agreement in accordance with customary rules of interpretation of public international law, including those codified in the Vienna Convention on the Law of Treaties, done at Vienna on 23 May 1969. 2. For greater certainty, neither this Agreement nor any supplementing agreement establishes an obligation to interpret their provisions in accordance with the domestic law of either Party. 3. For greater certainty, an interpretation of this Agreement or any supplementing agreement given by the courts of either Party shall not be binding on the courts of the other Party. Article COMPROV.16: Private rights 1. Without prejudice to Article MOBI.SSC.67 [Protection of individual rights] and with the exception, with regard to the Union, of Part Three [Law enforcement and judicial cooperation ], nothing in this Agreement or any supplementing agreement shall be construed as conferring rights or imposing obligations on persons other than those created between the Parties under public international law, nor as permitting this Agreement or any supplementing agreement to be directly invoked in the domestic legal systems of the Parties. 2. A Party shall not provide for a right of action under its law against the other Party on the ground that the other Party has acted in breach of this Agreement or any supplementing agreement. Article COMPROV.17: Definitions 1. For the purposes of this Agreement and any supplementing agreement, and unless otherwise specified, the following definitions apply:

(a)“data subject” means an identified or identifiable natural person; an identifiable person being a person who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data or an online identifier, or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person; (b)“day” means a calendar day; (c)“Member State” means a Member State of the European Union; (d)“personal data” means any information relating to a data subject; (e)“State” means a Member State or the United Kingdom, as the context requires; (f)“territory” of a Party means in respect of each Party the territories to which the Agreement applies in accordance with Article FINPROV.1 [Territorial scope]; (g)“the transition period” means the transition period provided for in Article 126 of the Withdrawal Agreement; and (h)“Withdrawal Agreement” means the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, including its Protocols. 2. Any reference to the “Union”, “Party” or “Parties” in this Agreement or any supplementing agreement shall be understood as not including the European Atomic Energy Community, unless otherwise specified or where the context otherwise requires. Title III: Institutional framework Article INST.1: Partnership Council 1. A Partnership Council is hereby established. It shall comprise representatives of the Union and of the United Kingdom. The Partnership Council may meet in different configurations depending on the matters under discussion. 2. The Partnership Council shall be co-chaired by a Member of the European Commission and a representative of the Government of the United Kingdom at ministerial level. It shall meet at the request of the Union or the United Kingdom, and, in any event, at least once a year, and shall set its meeting schedule and its agenda by mutual consent. 3. The Partnership Council shall oversee the attainment of the objectives of this Agreement and any supplementing agreement. It shall supervise and facilitate the implementation and application of this Agreement and of any supplementing agreement. Each Party may refer to the Partnership Council any issue relating to the implementation, application and interpretation of this Agreement or of any supplementing agreement. 4. The Partnership Council shall have the power to: (a)adopt decisions in respect of all matters where this Agreement or any supplementing agreement so provides; (b)make recommendations to the Parties regarding the implementation and application of this Agreement or of any supplementing agreement; (c)adopt, by decision, amendments to this Agreement or to any supplementing agreement in the cases provided for in this Agreement or in any supplementing agreement; (d)except in relation to Title III [Institutional Framework] of Part One [Common and institutional provisions], until the end of the fourth year following the entry into force of this Agreement, adopt decisions amending this Agreement or any supplementing agreement, provided that such amendments are necessary to correct errors, or to address omissions or other deficiencies; (e)discuss any matter related to the areas covered by this Agreement or by any supplementing agreement;

(f)delegate certain of its powers to the Trade Partnership Committee or to a Specialised Committee, except those powers and responsibilities referred to in point (g) of Article INST.1(4) [Partnership Council]; (g)by decision, establish Trade Specialised Committees and Specialised Committees, other than those referred to in Article INST.2(1) [Committees], dissolve any Trade Specialised Committee or Specialised Committee, or change the tasks assigned to them; and (h)make recommendations to the Parties regarding the transfer of personal data in specific areas covered by this Agreement or any supplementing agreement. 5. The work of the Partnership Council shall be governed by the rules of procedure set out in ANNEX INST-1 [Rules of Procedure of the Partnership Council and Committees]. The Partnership Council may amend that Annex. Article INST.2: Committees 1. The following Committees are hereby established: (a)the Trade Partnership Committee, which addresses matters covered by Titles I to VII, Chapter 4 [Energy goods and raw materials] of Title VIII, Titles IX to XII of Heading One [Trade] of Part Two, Heading Six [Other provisions] of Part Two, and Annex ENER-2 [ENERGY AND ENVIRONMENTAL SUBSIDIES]; (b)the Trade Specialised Committee on Goods which addresses matters covered by Chapter 1 of Title I of Heading One of Part Two and Chapter four [Energy goods and raw materials] of Title VIII of Heading One of Part Two; (c)the Trade Specialised Committee on Customs Cooperation and Rules of Origin, which addresses matters covered by Chapters 2 and 5 of Title I of Heading One of Part Two, the Protocol on mutual administrative assistance in customs matters and the provisions on customs enforcement of intellectual property rights, fees and charges, customs valuation and repaired goods; (d)the Trade Specialised Committee on Sanitary and Phytosanitary Measures, which addresses matters covered by Chapter 3 of Title I of Heading One of Part Two; (e)the Trade Specialised Committee on Technical Barriers to Trade, which addresses matters covered by Chapter 4 of Title I of Heading One of Part Two and Article ENER.25 [Cooperation on standards] of Title VIII [Energy] of Heading One of Part Two; (f)the Trade Specialised Committee on Services, Investment and Digital Trade, which addresses matters covered by Titles II to IV of Heading One of Part Two and Chapter 4 [Energy Goods and Raw Materials] of Title VIII of Heading One of Part Two; (g)the Trade Specialised Committee on Intellectual Property, which addresses matters covered by Title V of Heading One of Part Two; (h)the Trade Specialised Committee on Public Procurement, which addresses matters covered by Title VI of Heading One of Part Two; (i)the Trade Specialised Committee on Regulatory Cooperation, which addresses matters covered by Title X of Heading One of Part Two; (j)the Trade Specialised Committee on Level Playing Field for Open and Fair Competition and Sustainable Development, which addresses matters covered by Title XI of Heading One of Part Two and Annex ENER-2 [ENERGY AND ENVIRONMENTAL SUBSIDIES]; (k)the Trade Specialised Committee on Administrative Cooperation in VAT and Recovery of Taxes and Duties, which addresses matters covered by the Protocol on administrative cooperation and combating fraud in the field of Value Added Tax and on mutual assistance for the recovery of claims relating to taxes and duties;] (l)the Specialised Committee on Energy, (I)which addresses matters covered by Title VIII of Heading One of Part Two, with the exception of Chapter 4 [Energy Goods and Raw Materials], Article ENER.25 [Cooperation on Standards] and Annex ENER-2 [ENERGY AND ENVIRONMENTAL SUBSIDIES], and

(II)which can discuss and provide expertise to the relevant Trade Specialised Committee on matters pertaining to Chapter four [Energy Goods and Raw Materials] and Article ENER.25 [Cooperation on Standards] of Title VIII of Heading One of Part Two; (m)the Specialised Committee on Air Transport, which addresses matters covered by Title I of Heading Two of Part Two; (n)the Specialised Committee on Aviation Safety, which addresses matters covered by Title II of Heading Two of Part Two; (o)the Specialised Committee on Road Transport, which addresses matters covered by Heading Three [Road Transport] of Part Two; (p)the Specialised Committee on Social Security Coordination, which addresses matters covered by Heading Four of Part Two and the Protocol on Social Security Coordination; (q)the Specialised Committee on Fisheries, which addresses matters covered by Heading Five [Fisheries] of Part Two; (r)the Specialised Committee on Law Enforcement and Judicial Cooperation, which addresses matters covered by Part Three [Law enforcement and judicial cooperation in criminal matters]; and (s)the Specialised Committee on Participation in Union Programmes, which addresses matters covered by Part Five [Union programmes]. 2. With respect to issues related to Titles I to VII, Chapter 4 [Energy goods and raw materials] of Title VIII, Titles IX to XII of Heading One [Trade] of Part Two, Heading Six [Other provisions] of Part Two and Annex ENER-2 [ENERGY AND ENVIRONMENTAL SUBSIDIES], the Trade Partnership Committee referred to in paragraph 1 of this Article shall have the power to: (a)assist the Partnership Council in the performance of its tasks and, in particular, report to the Partnership Council and carry out any task assigned to it by the latter; (b)supervise the implementation of this Agreement or any supplementing agreement; (c)adopt decisions or make recommendations as provided for in this Agreement or any supplementing agreement or where such power has been delegated to it by the Partnership Council; (d)supervise the work of the Trade Specialised Committees referred to in paragraph 1 of this Article; (e)explore the most appropriate way to prevent or solve any difficulty that may arise in relation to the interpretation and application of this Agreement or any supplementing agreement, without prejudice to Title I [Dispute settlement] of Part Six ; (f)exercise the powers delegated to it by the Partnership Council pursuant to point (f) of Article INST.1(4) [Partnership Council]; (g)establish, by decision, Trade Specialised Committees other than those referred to in paragraph 1 of this Article, dissolve any such Trade Specialised Committee, or change the tasks assigned to them; and (h)establish, supervise, coordinate and dissolve Working Groups, or delegate their supervision to a Trade Specialised Committee. 3. With respect to issues related to their area of competence, Trade Specialised Committees shall have the power to: (a)monitor and review the implementation and ensure the proper functioning of this Agreement or any supplementing agreement; (b)assist the Trade Partnership Committee in the performance of its tasks and, in particular, report to the Trade Partnership Committee and carry out any task assigned to them by it;

(c)conduct the preparatory technical work necessary to support the functions of the Partnership Council and the Trade Partnership Committee, including when those bodies have to adopt decisions or recommendations; (d)adopt decisions in respect of all matters where this Agreement or any supplementing agreement so provides; (e)discuss technical issues arising from the implementation of this Agreement or of any supplementing agreement, without prejudice to Title I [Dispute Settlement] of Part Six; and (f)provide a forum for the Parties to exchange information, discuss best practices and share implementation experience. 4. With respect to issues related to their area of competence, Specialised Committees shall have the power to: (a)monitor and review the implementation and ensure the proper functioning of this Agreement or any supplementing agreement; (b)assist the Partnership Council in the performance of its tasks and, in particular, report to the Partnership Council and carry out any task assigned to them by it; (c)adopt decisions, including amendments, and recommendations in respect of all matters where this Agreement or any supplementing agreement so provides or for which the Partnership Council has delegated its powers to a Specialised Committee in accordance with point (f) of Article INST.1(4) [Partnership Council]; (d)discuss technical issues arising from the implementation of this Agreement or any supplementing agreement; (e)provide a forum for the Parties to exchange information, discuss best practices and share implementation experience; (f)establish, supervise, coordinate and dissolve Working Groups; and (g)provide a forum for consultation pursuant to Article INST.13(7) [Consultations] of Title I [Dispute Settlement] of Part Six. 5. Committees shall comprise representatives of each Party. Each Party shall ensure that its representatives on the Committees have the appropriate expertise with respect to the issues under discussion. 6. The Trade Partnership Committee shall be co-chaired by a senior representative of the Union and a representative of the United Kingdom with responsibility for trade-related matters, or their designees. It shall meet at the request of the Union or the United Kingdom, and, in any event, at least once a year, and shall set its meeting schedule and its agenda by mutual consent. 7. The Trade Specialised Committees and the Specialised Committees shall be co-chaired by a representative of the Union and a representative of the United Kingdom. Unless otherwise provided for in this Agreement, or unless the co-chairs decide otherwise, they shall meet at least once a year. 8. Committees shall set their meeting schedule and agenda by mutual consent. 9. The work of the Committees shall be governed by the rules of procedure set out in ANNEX INST-X [Rules of Procedure of the Partnership Council and Committees]. 10. By derogation from paragraph 9, a Committee may adopt and subsequently amend its own rules that shall govern its work. Article INST.3: Working Groups 1. The following Working Groups are hereby established:

(a) the Working Group on Organic Products, under the supervision of the Trade Specialised Committee on Technical Barriers to Trade; (b) the Working Group on Motor Vehicles and Parts, under the supervision of the Trade Specialised Committee on Technical Barriers to Trade; (c) the Working Group on Medicinal Products, under the supervision of the Trade Specialised Committee on Technical Barriers to Trade; (d) the Working Group on Social Security Coordination, under the supervision of the Specialised Committee on Social Security Coordination; 2. Working Groups shall, under the supervision of Committees, assist Committees in the performance of their tasks and, in particular, prepare the work of Committees and carry out any task assigned to them by the latter. 3. Working Groups shall comprise representatives of the Union and of the United Kingdom and shall be co-chaired by a representative of the Union and a representative of the United Kingdom. 4. Working Groups shall set their own rules of procedure, meeting schedule and agenda by mutual consent. Article INST.4: Decisions and recommendations 1. The decisions adopted by the Partnership Council, or, as the case may be, by a Committee, shall be binding on the Parties and on all the bodies set up under this Agreement and under any supplementing agreement, including the arbitration tribunal referred to in Title I [Dispute settlement] of Part Six. Recommendations shall have no binding force. 2. The Partnership Council or, as the case may be, a Committee, shall adopt decisions and make recommendations by mutual consent. Article INST.5: Parliamentary cooperation 1. The European Parliament and the Parliament of the United Kingdom may establish a Parliamentary Partnership Assembly consisting of Members of the European Parliament and of Members of the Parliament of the United Kingdom, as a forum to exchange views on the partnership. 2. Upon its establishment, the Parliamentary Partnership Assembly: (a)may request relevant information regarding the implementation of this Agreement and any supplementing agreement from the Partnership Council, which shall then supply that Assembly with the requested information; (b)shall be informed of the decisions and recommendations of the Partnership Council; and (c)may make recommendations to the Partnership Council. Article INST.6: Participation of civil society The Parties shall consult civil society on the implementation of this Agreement and any supplementing agreement, in particular through interaction with the domestic advisory groups and the Civil Society Forum referred to in Articles INST.7 [Domestic advisory groups] and INST.8 [Civil Society Forum]. Article INST.7: Domestic advisory groups 1. Each Party shall consult on issues covered by this Agreement and any supplementing agreement its newly created or existing domestic advisory group or groups comprising a representation of independent civil society organisations including non-governmental organisations, business and employers' organisations, as well as trade unions, active in economic, sustainable development, social, human rights, environmental and other matters. Each Party may convene its domestic advisory group or groups in different configurations to discuss the implementation of different provisions of this Agreement or of any supplementing agreement.

2. Each Party shall consider views or recommendations submitted by its domestic advisory group or groups. Representatives of each Party shall aim to consult with their respective domestic advisory group or groups at least once a year. Meetings may be held by virtual means. 3. In order to promote public awareness of the domestic advisory groups, each Party shall endeavour to publish the list of organisations participating in its domestic advisory group or groups as well as the contact point for that or those groups. 4. The Parties shall promote interaction between their respective domestic advisory groups, including by exchanging where possible the contact details of members of their domestic advisory groups. Article INST.8: Civil Society Forum 1. The Parties shall facilitate the organisation of a Civil Society Forum to conduct a dialogue on the implementation of Part Two of this Agreement. The Partnership Council shall adopt operational guidelines for the conduct of the Forum. 2. The Civil Society Forum shall meet at least once a year, unless otherwise agreed by the Parties. The Civil Society Forum may meet by virtual means. 3. The Civil Society Forum shall be open for the participation of independent civil society organisations established in the territories of the Parties, including members of the domestic advisory groups referred to in Article INST.7 [Domestic advisory groups]. Each Party shall promote a balanced representation, including non-governmental organisations, business and employers´ organisations and trade unions, active in economic, sustainable development, social, human rights, environmental and other matters.



PART TWO: TRADE, TRANSPORT, FISHERIES AND OTHER ARRANGEMENTS HEADING ONE: TRADE Title I: Trade in goods Chapter 1: National treatment and market access for goods (including trade remedies) Article GOODS.1: Objective The objective of this Chapter is to facilitate trade in goods between the Parties and to maintain liberalised trade in goods in accordance with the provisions of this Agreement. Article GOODS.2: Scope Except as otherwise provided, this Chapter applies to trade in goods of a Party. Article GOODS.3: Definitions For the purposes of this Chapter, the following definitions apply: (a)“consular transactions” means the procedure of obtaining from a consul of the importing Party in the territory of the exporting Party, or in the territory of a third party, a consular invoice or a consular visa for a commercial invoice, certificate of origin, manifest, shipper’s export declaration or any other customs documentation in connection with the importation of the good;

(b)“Customs Valuation Agreement” means the Agreement on Implementation of Article VII of GATT 1994; (c)“export licensing procedure” means an administrative procedure, whether or not referred to as licensing, used by a Party for the operation of export licensing regimes, requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body as a prior condition for exportation from that Party; (d)“import licensing procedure” means an administrative procedure, whether or not referred to as licensing, used by a Party for the operation of import licensing regimes, requiring the submission of an application or other documentation, other than that generally required for customs clearance purposes, to the relevant administrative body or bodies as a prior condition for importation into the territory of the importing Party; (e)“originating goods” means, unless otherwise provided, a good qualifying under the rules of origin set out in Chapter 2 [Rules of origin] of this Title; (f)“performance requirement” means a requirement that: (I)a given quantity, value or percentage of goods be exported; (II)goods of the Party granting an import licence be substituted for imported goods; (III)a person benefiting from an import licence purchase other goods in the territory of the Party granting the import licence, or accord a preference to domestically produced goods; (IV)a person benefiting from an import licence produce goods in the territory of the Party granting the import licence, with a given quantity, value or percentage of domestic content; or (V)relates in whatever form to the volume or value of imports, to the volume or value of exports or to the amount of foreign exchange flows; (g)“remanufactured good” means a good classified in HS Chapters 32, 40, 84 to 90, 94 or 95 that: (I)is entirely or partially composed of parts obtained from used goods; (II)has similar life expectancy and performance compared with such goods, when new; and (III)is given an equivalent warranty to as that applicable to such goods when new; and (h)“repair” means any processing operation undertaken on a good to remedy operating defects or material damage and entailing the re-establishment of the good to its original function or to ensure compliance with technical requirements for its use. Repair of a good includes restoration and maintenance, with a possible increase in the value of the good from restoring the original functionality of that good, but does not include an operation or process that: (I)destroys the essential characteristics of a good, or creates a new or commercially different good; (II)transforms an unfinished good into a finished good; or (III)is used to improve or upgrade the technical performance of a good. Article GOODS.3A: Classification of goods The classification of goods in trade between the Parties under this Agreement is set out in each Party’s respective tariff nomenclature in conformity with the Harmonised System.

Article GOODS.4: National treatment on internal taxation and regulation Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994 including its Notes and Supplementary Provisions. To this end, Article III of GATT 1994 and its Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis. Article GOODS.4A: Freedom of transit Each Party shall accord freedom of transit through its territory, via the routes most convenient for international transit, for traffic in transit to or from the territory of the other Party or of any other third country. To this end, Article V of GATT 1994 and its Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis. The Parties understand that Article V of GATT 1994 includes the movement of energy goods via inter alia pipelines or electricity grids. Article GOODS.5: Prohibition of customs duties Except as otherwise provided for in this Agreement, customs duties on all goods originating in the other Party shall be prohibited. Article GOODS.6: Export duties, taxes or other charges 1.A Party may not adopt or maintain any duty, tax or other charge of any kind imposed on, or in connection with, the exportation of a good to the other Party; or any internal tax or other charge on a good exported to the other Party that is in excess of the tax or charge that would be imposed on like goods when destined for domestic consumption. 2.For the purpose of this Article, the term ‘other charge of any kind’ does not include fees or other charges that are permitted under Article GOODS.7 [Fees and formalities]. Article GOODS.7: Fees and formalities 1.Fees and other charges imposed by a Party on or in connection with importation or exportation of a good of the other Party shall be limited in amount to the approximate cost of the services rendered, and shall not represent an indirect protection to domestic goods or taxation of imports or exports for fiscal purposes. A Party shall not levy fees or other charges on or in connection with importation or exportation on an ad valorem basis. 2.Each Party may impose charges or recover costs only where specific services are rendered, in particular, but not limited to, the following: (a)attendance, where requested, by customs staff outside official office hours or at premises other than customs premises; (b)analyses or expert reports on goods and postal fees for the return of goods to an applicant, particularly in respect of decisions relating to binding information or the provision of information concerning the application of the customs laws and regulations; (c)the examination or sampling of goods for verification purposes, or the destruction of goods, where costs other than the cost of using customs staff are involved; and (d)exceptional control measures, if these are necessary due to the nature of the goods or to a potential risk. 3.Each Party shall promptly publish all fees and charges it imposes in connection with importation or exportation via an official website in such a manner as to enable governments, traders and other interested parties, to become acquainted with them. That information shall include the reason for the fee or charge for the service provided, the responsible authority, the fees and charges that will be applied, and when and how payment is to be made. New or amended fees and charges shall not be imposed until information in accordance with this paragraph has been published and made readily available. 4.A Party shall not require consular transactions, including related fees and charges, in connection with the importation of any good of the other Party. Article GOODS.8: Repaired goods 1.A Party shall not apply a customs duty to a good, regardless of its origin, that re-enters the Party’s territory after that good has been temporarily exported from its territory to the territory of the other Party for repair.

2.Paragraph 1 does not apply to a good imported in bond, into free trade zones, or in similar status, that is then exported for repair and is not re-imported in bond, into free trade zones, or in similar status. 3.A Party shall not apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair. Article GOODS.9: Remanufactured goods 1.A Party shall not accord to remanufactured goods of the other Party treatment that is less favourable than that which it accords to equivalent goods in new condition. 2.Article GOODS.10 [Import and export restrictions] applies to import and export prohibitions or restrictions on remanufactured goods. If a Party adopts or maintains import and export prohibitions or restrictions on used goods, it shall not apply those measures to remanufactured goods. 3.A Party may require that remanufactured goods be identified as such for distribution or sale in its territory and that they meet all applicable technical requirements that apply to equivalent goods in new condition. Article GOODS.10: Import and export restrictions 1.A Party shall not adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of GATT 1994, including its Notes and Supplementary Provisions. To this end, Article XI of GATT 1994 and its Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis. 2.A Party shall not adopt or maintain: (a)export and import price requirements, except as permitted in enforcement of countervailing and anti-dumping duty orders and undertakings; or (b)import licensing conditioned on the fulfilment of a performance requirement. Article GOODS.11: Import and export monopolies A Party shall not designate or maintain an import or export monopoly. For the purposes of this Article, import or export monopoly means the exclusive right or grant of authority by a Party to an entity to import a good from, or export a good to, the other Party. Article GOODS. 13: Import licensing procedures 1.Each Party shall ensure that all import licensing procedures applicable to trade in goods between the Parties are neutral in application, and are administered in a fair, equitable, non-discriminatory and transparent manner. 2.A Party shall only adopt or maintain licensing procedures as a condition for importation into its territory from the territory of the other Party, if other appropriate procedures to achieve an administrative purpose are not reasonably available. 3.A Party shall not adopt or maintain any non-automatic import licensing procedure, unless it is necessary to implement a measure that is consistent with this Agreement. A Party adopting such non-automatic import licensing procedure shall indicate clearly the measure being implemented through that procedure. 4.Each Party shall introduce and administer any import licensing procedure in accordance with Articles 1 to 3 of the WTO Agreement on Import Licensing Procedures (‘the Import Licensing Agreement’). To this end, Articles 1 to 3 of the Import Licensing Agreement are incorporated into and made part of this Agreement mutatis mutandis. 5.Any Party introducing or modifying any import licensing procedure shall make all relevant information available online on an official website. That information shall be made available, whenever practicable, at least 21 days prior to the date of the application of the new or modified licensing procedure and in any event no later than the date of application. That information shall contain the data required under Article 5 of the Import Licensing Agreement. 6.At the request of the other Party, a Party shall promptly provide any relevant information regarding any import licensing procedures that it intends to adopt or that it maintains, including the information referred to in Articles 1 to 3 of the Import Licensing Agr