Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down rules for the exercise of the Union's rights in the implementation and enforcement 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 and 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
Date: 2022-03-11
Institutions: European Commission, Secretariat-General
Subjects: EAEC, United Kingdom, application of the law, cooperation agreement (EU), cooperation policy, trade agreement, trade agreement (EU), withdrawal from the EU

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   EUROPEAN COMMISSION  Brussels, 11.3.2022  COM(2022) 89 final 2022/0068 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down rules for the exercise of the Union's rights in the implementation and enforcement 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 and 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  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

• 
Both  the  Withdrawal  Agreement1  and  the  Trade  and  Cooperation  Agreement2  between  the 
Union and the United Kingdom allow a Party to adopt and apply certain measures in order to 
induce  compliance  by  the  other  Party  with  a  ruling  delivered  by  an  arbitration  tribunal  or 
panel. Such measures are temporary remedies applied until full compliance is achieved3. The 
Trade  and  Cooperation  Agreement  also  provides  for  compensatory  measures,  which  are 
authorised by an arbitration tribunal at the request of a Party, if the other Party has been found 
to  have  applied  remedial  measures  that  are  significantly  inconsistent  with  the  applicable 
provisions4.  

Moreover, the two Agreements allow a Party to take the following measures  without having 
to first resort to the relevant dispute settlement mechanism:   

(a) 

Remedial measures:  

(a) 

under  the  Withdrawal  Agreement  (in  relation  to  a  failure  to  add  relevant 
instruments of Union law to the Protocol on Ireland/Northern Ireland)5;  

(b)  under  the  Trade  and  Cooperation  Agreement    (in  relation  to  subsidies,  road 

transport and fisheries)6; 

(b) 

Rebalancing measures:  

(a) 

under the Withdrawal Agreement (in relation to safeguard measures adopted by 
the  United  Kingdom  which  create  an  imbalance  between  the  rights  and 
obligations under the Protocol on Ireland/Northern Ireland)7;  

(b)  under the Trade and Cooperation Agreement (in relation to safeguard measures 
adopted by the United Kingdom which create an imbalance between the rights 
and  obligations  under  the  Trade  and  Cooperation  Agreement  or  under  any 
supplementing agreement)8; 

1 

2 

3 
4 
5 
6 
7 
8 

Agreement on the  withdrawal of the United Kingdom of Great Britain and Northern Ireland from the 
European  Union  and  the  European  Atomic  Energy  Community,  OJ  L  29,  31.1.2020,  p.  7.  The 
Agreement was concluded pursuant to Council Decision Council (EU) 2020/135, OJ L 29, 31.1.2020, p. 
1, and entered into force on 1 February 2020.  
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,  OJ  L  149,  30.4.2021,  p.10.  Agreement  concluded  pursuant  to  Council  Decision  (EU) 
2021/689  of  29  April  2021  on  the  conclusion,  on  behalf  of  the  Union,  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 (OJ L 149, 30.4.2021, p. 2). 
The Agreement applied provisionally as of 1 January 2021 and entered into force on 1 May 2021.  
Articles 178 of the Withdrawal Agreement and 749 of the Trade and Cooperation Agreement. 
Article 374(12) of the Trade and cooperation Agreement. 
Articles 13 of the Protocol on Ireland/Northern Ireland to the Withdrawal Agreement. 
Articles 374, 469 and 506 of the Trade and Cooperation Agreement. 
Article 16 of the Protocol on Ireland/Northern Ireland to the Withdrawal Agreement 
Article 773 of the Trade and Cooperation Agreement. 

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(c) 

under the Trade and Cooperation Agreement (in relation to divergences in the 
areas  of  labour  and  social,  environmental  or  climate  protection  or  subsidy 
control)9; 

(c) 

Countermeasures  under  the  Trade  and  Cooperation  Agreement  (in  response  to 
rebalancing  measures  pursuant  to  Article  411  of  the  Trade  and  Cooperation 
Agreement)10;  

(d) 

Safeguard measures: 

(a) 

under the Withdrawal Agreement (if the application of the IE/NI Protocol leads 
to  serious  economic,  societal  or  environmental  difficulties  that  are  liable  to 
persist, or to diversion of trade)11; 

(b)  under  the  Trade  and  Cooperation  Agreement  (in  case  of  serious  economic, 
societal  or  environmental  difficulties  of  a  sectorial  or  regional  nature  that  are 
liable to persist)12;   

(e) 

Suspension  of  obligations  under  the  Trade  and  Cooperation  Agreement  or  any 
supplementing agreement in case of breach of certain provisions of this Agreement 
or any supplementing agreement or non-fulfilment of certain conditions, in particular 
with  regard  to  trade  in  goods,  air  transport,  road  transport,  fisheries  or  Union 
programmes13; and 

The  Union  is  also  authorised,  under  the  Trade  and  Cooperation  Agreement,  to  suspend  or 
terminate  the  application  of  Protocol  I,  in  relation  to  one  or  more  Union  programmes, 
activities or parts thereof, in case the United Kingdom fails to pay its financial contribution or 
introduces significant changes to certain initial conditions.  

The Union and the United Kingdom may conclude other bilateral agreements between them 
that constitute supplementing agreements to the Trade and Cooperation Agreement and 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  framework14.  The  above 
mentioned measures should therefore also cover such supplementing agreements. 

The Union should also be able to take appropriate  measures if effective recourse to binding 
dispute settlement under the Agreements is not possible because the United Kingdom does not 
cooperate in making such recourse possible. 

The Council, in its decision on the conclusion of the Trade and Cooperation Agreement (the 
‘Council  decision’)15,  empowered  the  Commission  to  adopt  a  majority  of  the  above 

9 

10 
11 
12 
13 
14 

15 

Article  411  of  the  Trade  and  Cooperation  Agreement.  These  measures  can  be  adopted  and  applied 
unless the other Party requests the establishment of an arbitration tribunal to examine whether they are 
consistent with the  conditions laid down in that Article.  
Article 411 of the Trade and Cooperation Agreement. 
Article 16 of the Protocol on Ireland/Northern Ireland to the Withdrawal Agreement.  
Article 773 of the Trade and Cooperation Agreement.  
Articles 34, 434(4), 435(12), 457, 501 and 506.  
Article 2 of the Trade and Cooperation Agreement. 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 (OJ L 149, 30.4.2021, p. 2540) constitutes one such 
supplementing agreement. 
Council Decision (EU) 2021/689 

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mentioned  measures  on  behalf  of  the  Union  “until  a  specific  legislative  act  regulating  the 
adoption of the measures” enters into force16.  

The Commission and the Council also agreed on a joint statement, issued at the time of the 
conclusion of the Trade and Cooperation Agreement, which provides that, “without prejudice 
to  its right  of initiative under the Treaties, the  Commission  will aim to propose the specific 
legislative act referred to above no later than 31 March 2022” 17. 

This  legislative  proposal  fulfils  this  political  commitment.  The  proposed  Regulation 
empowers  the  Commission  to  adopt  the  measures  referred  to  above,  as  well  as  to  amend, 
suspend  or  repeal  them  as  appropriate,  by  means  of  implementing  acts.  Where  the  measure 
consists  of  the  suspension  of  an  obligation  under  any  of  the  agreements  the  empowerment 
extends  to  the  adoption  of  appropriate  restrictions  on  trade,  investment  or  other  activities 
within the scope of the agreement concerned. The proposed Regulation thus ensures that the 
Union  can  act  in  a  timely  and  effective  manner  to  protect  its  interests  in  implementing  and 
enforcing both the Withdrawal Agreement and the Trade and Cooperation Agreement.  

• 

Consistency with existing policy provisions in the policy area 

There  are  no  precedents  of  any  policy  provisions  governing  the  withdrawal  of,  and  the 
Union’s  partnership  with,  a  former  Member  State.  The  unprecedented  nature  of  the  system 
formed  by  the  Withdrawal  Agreement  and  the  Trade  and  Cooperation  Agreement  is 
particularly  noteworthy  in  the  case  of  the  Protocol  on  Ireland/Northern  Ireland  to  the 
Withdrawal Agreement, which allows the United Kingdom to participate in the single market 
for goods in respect of Northern Ireland.   

The  proposed  regulation  is  intended  to  apply  instead  of  the  empowerment  given  to  the 
Commission  in  the  above  mentioned  Council  decision  on  the  conclusion  of  the  Trade  and 
Cooperation Agreement. Following the adoption of the proposed Regulation, the Commission 
will therefore submit a proposal for the repeal of the relevant parts of that Decision.  

• 

Consistency with other Union policies 

Given  the  broad  scope  of  application  of  the  two  Agreements,  measures  might  have  to  be 
adopted in relation to the following Union policies: the common fisheries policy, the common 
transport  policy,  the  internal  market  policy,  the  research  and  development  policy,  the  space 
policy and the common commercial policy.  

The proposed Regulation  is  lex specialis with  regard to  sectoral  provisions of Union law to 
the extent that these provisions govern the same subject matter. Possible overlaps might exist 
e.g. in the field of the common commercial policy18 or the transport policy19.   

16 
17 

18 

19 

Article 3 of the Council Decision. 
Statement by the Commission and the Council on the monitoring and implementation of the Trade and 
Cooperation Agreement, paragraph 3. 
Regulation (EU) No 654/2014 of the European  Parliament and of the Council concerning the exercise 
of  the  Union's  rights  for  the  application  and  enforcement  of  international  trade  rules  and  amending 
Council Regulation (EC) No 3286/94 laying down Community procedures in the field of the common 
commercial policy in order to ensure the  exercise of the  Community's rights under international trade 
rules,  in  particular  those  established  under  the  auspices  of  the  World  Trade  Organization  (OJ  L  189, 
27.6.2014, p. 50) 
Regulation  (EU)  2019/712  of  the  European  Parliament  and  of  the  Council  of  17  April  2019  on 
safeguarding  competition  in  air  transport,  and  repealing  Regulation  (EC)  No  868/2004  (OJ  L  123, 
10.5.2019, p. 4) 

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Given  the  specific  features  of  the  Union’s  policies  in  the  Area  of  Freedom,  Security  and 
Justice, the proposed Regulation does not cover measures within the scope of those policies. 

A  separate  legislative  proposal  governs  the  adoption  of  measures  in  the  area  of  Euratom’s 
research and training programmes.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  bases  are  those  in  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU) 
which  govern  the  areas  in  which  unilateral  and  enforcement  measures  may  have  to  be 
adopted, namely:  

- 

- 

- 

- 

• 

Article 43 TFEU (fisheries); 

Articles 91 and 100 TFEU (transport); 

Articles 173, 182, 188 and 189 TFEU (Union programmes); 

Article 207 TFEU (common commercial policy).  

Subsidiarity (for non-exclusive competence)  

The  proposed  Regulation  implements  the  Trade  and  Cooperation  Agreement  and  the 
Withdrawal Agreement, both of which are EU-only agreements. Since the objective of laying 
down  rules  and  procedures  governing  the  exercise  of  Union's  rights  under  the  Withdrawal 
Agreement and the Trade and Cooperation Agreement, cannot be sufficiently achieved by the 
Member States but can rather, by reason of its scale and effects, be better achieved at Union 
level, the Union may adopt measures, in accordance with the principle of subsidiarity as set 
out  in  Article  5  of  the  Treaty  on  European  Union.  However,  measures  adopted  under  the 
proposed  initiative  will  affect  Member  States  and  this  situation  justifies  the  recourse  to 
comitology procedures.  

• 

Proportionality 

Similarly, to the extent that the Union’s rights to be exercised are set out in the Agreements 
concerned,  the  proposed  measures  do  not  exceed  what  is  strictly  necessary  to  achieve  the 
objective  to  ensure  a  swift  and  effective  exercise  of  those  rights.  Moreover,  the  conditions 
applying under the Withdrawal Agreement and the Trade and Cooperation Agreement to the 
adoption  of  unilateral  and  enforcement  measures  ensure  that  these  measures  are  limited  to 
what is strictly necessary to achieve the specific purposes laid down therein.  

• 

Choice of the instrument 

The  form  of  a  regulation  fits  best  the  objective  pursued,  namely  to  lay  down  general 
principles  and  uniform  conditions  for  the  exercise  of  the  rights  available  to  the  Union  in 
implementing  and  enforcing  the  Withdrawal  Agreement  and  the  Trade  and  Cooperation 
Agreement or any supplementary agreement.  

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

3. 

• 

n/a 

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• 

Stakeholder consultations 

The initiative is of a procedural and institutional nature.  

• 

n/a 

• 

Collection and use of expertise 

Impact assessment 

No impact assessment has been carried out for the following reasons:  

1. 

2. 

• 

n/a 

• 

No  policy  options  are  available  to  the  Commission  because:  (a)  the  envisaged 
proposal organises how measures already agreed in two international agreements are 
taken  within  the  Union  with  no  margin  for  variation,  and  (b)  the  Commission  has 
committed before the European Parliament and the Council to submit a proposal for 
this legislative act by a given date.  

No directly identifiable impacts are expected given the procedural nature of the act. 

Regulatory fitness and simplification 

Fundamental rights 

Measures  adopted  under  the  proposed  Regulation  would  be  a  lawful  action  by  the  Union 
under  the  Charter  of  Fundamental  Rights.  This  is  because  this  action  would  be  taken  in 
conformity with the requirements that the action be taken on the basis of a proper legal basis, 
by the competent authorities, in pursuit of a legitimate objective, namely that of exercising the 
Union’s rights under the above Agreements, and in line with the principle of proportionality. 

4. 

n/a 

5. 

• 

BUDGETARY IMPLICATIONS 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

A review of the implementation of the proposed Regulation is foreseen within five years of its 
entry  into  force.  This  period  is  in  line  with  the  joint  review  of  both  Parties  to  the  TCA  as 
provided for in Article 776 of the TCA. 

• 

n/a 

• 

Explanatory documents (for directives) 

Detailed explanation of the specific provisions of the proposal 

Article 1 lays down the subject matter of the proposed Regulation, namely to  establish rules 
and procedures  to  ensure an effective and timely  exercise of the Union's rights  in  enforcing 
and  implementing the Withdrawal Agreement and the Trade and Cooperation Agreement.  

These rights may be exercised by means of the measures listed in the second paragraph of that 
Article, in accordance with the rules laid down in Article 2 and the committee procedure laid 
down in Article 3. In particular, these measures must be limited to what is necessary to fulfil 
their purpose as provided for in the relevant provisions of the Withdrawal Agreement and the 
Trade and Cooperation Agreement.  

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Article 4 confirms the lex specialis character of the proposed Regulation. Article 5 provides 
for a review of this Regulation by the Commission within five years of its entry into force, in 
order to ascertain that it remains fit for purpose.  

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2022/0068 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down rules for the exercise of the Union's rights in the implementation and 
enforcement 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 and 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 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 43, 91, 100, 173, 182, 188, 189 and 207 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee20,  
Having regard to the opinion of the Committee of the Regions21,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

20 
21 
22 
23 

On 30 January 2020, the Council concluded the Agreement on the withdrawal of the 
United Kingdom of Great Britain and Northern Ireland from the European Union and 
the  European  Atomic  Energy  Community22  (the  ‘Withdrawal  Agreement’).  That 
Agreement entered into force on 1 February 2020.  

On  29  April  2021,  the  Council  concluded,  on  behalf  of  the  Union,  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  part23  (the  ‘Trade  and  Cooperation  Agreement’).  The 
Trade and Cooperation Agreement was applied provisionally as of 1 January 2021 and 
entered into force on 1 May 2021. 

Both  the  Withdrawal  Agreement  and  the  Trade  and  Cooperation  Agreement  provide 
that  a  Party  may  adopt  certain  measures  in  the  specific  cases  and  subject  to  the 
conditions  and  procedures  laid  down  therein.  These  measures  may  entail  the 
suspension of certain obligations under the Agreement concerned. 

The Union and the United Kingdom may conclude other bilateral agreements between 
them  that  constitute  supplementing  agreements  to  the  Trade  and  Cooperation 
Agreement  and  such  supplementing  agreements  are  an  integral  part  of  the  overall 

OJ C , , p. . 
OJ C , , p. . 
OJ L 29, 31.1.2020, p. 7. 
OJ L 149, 30.4.2021, p. 10. 

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(5) 

(6) 

(7) 

(8) 

(9) 

bilateral  relations  as  governed  by  this  Agreement  and  form  part  of  the  overall 
framework.  

Should  the  need  arise  to  exercise  its  rights  in  implementing  and  enforcing  the 
Withdrawal Agreement and the Trade and Cooperation Agreement, the Union should 
be in a position to make appropriate use of the instruments available to it swiftly and 
in a proportionate, effective and flexible manner, while fully involving Member States. 
The  Union  should  also  be  able  to  take  appropriate  measures  if  effective  recourse  to 
binding dispute settlement under those Agreements is not possible because the United 
Kingdom  does  not  cooperate  in  making  such  recourse  possible.  It  is  therefore 
necessary to lay down rules and procedures governing the adoption of those measures. 

The  rules  and  procedures  laid  down  in  this  Regulation  should  take  precedence  over 
any provisions of Union law adopted on the basis of the Treaty on the Functioning of 
the European Union that govern the same subject matter. 

In order to ensure that this Regulation remains fit for purpose, the Commission should 
undertake,  within  five  years  of  its  entry  into  force,  a  review  of  its  scope  and 
implementation  and  report  its  findings  to  the  European  Parliament,  the  Council,  the 
European Economic and Social Committee and the Committee of the Regions. 

implementing  powers  should  be  conferred  on 

In order to ensure uniform conditions for the implementation of this Regulation, and in 
particular  in  order  to  ensure  the  swift,  effective  and  flexible  exercise  of  the 
corresponding  Union’s  rights  under  the  Withdrawal  Agreement  and  the  Trade  and 
Cooperation  Agreement, 
the 
Commission  to  adopt  the  measures  referred  to  above  and  to  and  to  adopt,  as 
appropriate,    measures  restricting  trade  or  other  activities.  Those  powers  should  also 
extend to the amendment, suspension or repeal of the adopted measures. They should 
be  exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council24. Given that the envisaged measures entail the adoption 
of acts  of  general  scope,  and that  most  of the envisaged measures  relate  to  the areas 
referred  to  in  Article  2(2),  point  (b),  of  that  Regulation,  the  examination  procedure 
should  be  used  for  the  adoption  of  those  measures.  The  Commission  should  adopt 
immediately  applicable  implementing  acts  where,  in  duly  justified  cases,  imperative 
grounds of urgency so require for the appropriate protection of the Union’s interests.  

Since  the  objective  of  this  Regulation,  namely  to  lay  down  rules  and  procedures 
governing  the  exercise  of  Union's  rights  under  the  Withdrawal  Agreement  and  the 
Trade  and  Cooperation  Agreement,  and  to  empower  the  Commission  to  adopt  the 
necessary measures including, as appropriate, restrictions in trade, investment or other 
activities within the scope of the latter Agreement cannot be sufficiently achieved by 
the Member States but can rather, by reason of its scale and effects, be better achieved 
at  Union  level,  the  Union  may  adopt  measures  in  accordance  with  the  principle  of 
subsidiarity as set out in Article 5 of the Treaty on European Union. Moreover, since 
only the Union is Party to the TCA and the WA, action at the level of international law 
in respect of these agreements can only be taken by the Union. In accordance with the 
principle  of  proportionality  as  set  out  in  that  Article,  this  Regulation  does  not  go 
beyond what is necessary in order to achieve that objective, 

24 

Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by Member States of 
the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

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HAVE ADOPTED THIS REGULATION: 

Article 1 
Subject matter and scope 

This  Regulation  lays  down  rules  and  procedures  to  ensure  an  effective  and  timely 
exercise of the Union's  rights in  enforcing and implementing  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  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 
the  Trade  and 
Cooperation  Agreement’)  and  supplementing  agreements 
Cooperation Agreement. 

to 

This Regulation applies to the following measures adopted by the Union (hereinafter: 
“measures”): 

the  suspension  of  the  relevant  preferential  treatment  of  the  product  or  products 
concerned as set out in Article 34 of the Trade and Cooperation Agreement; 

remedial measures and the suspension of obligations as set out in Article 374 of the 
Trade and Cooperation Agreement;  

rebalancing measures and countermeasures as set out in Article 411 of the Trade and 
Cooperation Agreement;  

the refusal, revocation, suspension, limitation of and the imposition of conditions on 
the  operating  authorisations  of  air  carriers  of  the  United  Kingdom,  as  well  as  the 
refusal, revocation, suspension, limitation of and the imposition of conditions on the 
operation of those air carriers, as set out in Articles 434(4) and 435(12) of the Trade 
and Cooperation Agreement; 

the suspension  of acceptance obligations as set  out  in  Article 457 of the Trade and 
Cooperation Agreement; 

remedial measures as set out in Article 469 of the Trade and Cooperation Agreement;  

compensatory measures and the suspension of obligations as set out in Article 501 of 
the Trade and Cooperation Agreement; 

remedial measures and the suspension of obligations as set out in Article 506 of the 
Trade and Cooperation Agreement;  

the  suspension  or  termination  of  the  application  of  Protocol  I,  in  relation  to  one  or 
more  Union  programmes  or  activities  adopted  on  the  basis  of  the  Treaty  on  the 
Functioning of the European Union, or parts thereof, as set out in  Articles 718 and 
719 of the Trade and Cooperation Agreement; 

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 749 of the Trade and Cooperation Agreement;  

safeguard measures and rebalancing measures as set out in Article 773 of the Trade 
and Cooperation Agreement; 

measures  restricting  trade,  investment  or  other  activities  within  the  scope  of  the 
Trade and Cooperation Agreement, if adjudication is not possible because the United 

1. 

2. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

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Kingdom is not taking the steps that are necessary for a dispute settlement procedure 
under  that  Agreement  or  the  Withdrawal  Agreement  to  function,  including  unduly 
delaying the proceedings amounting to non-cooperation in the process; 

the suspension of obligations under Article 178 of the Withdrawal Agreement in the 
context of compliance with an arbitration panel ruling; 

remedial measures as set out in Article 13 of the Protocol on Ireland/Northern Ireland 
to the Withdrawal Agreement;  

safeguard measures and rebalancing measures as set out in Article 16 of the Protocol 
on Ireland/Northern Ireland to the Withdrawal Agreement. 

(m) 

(n) 

(o) 

Article 2 
Exercise of the Union’s rights 

1. 

The Commission shall be empowered, by means of implementing acts,  

(a) 

to adopt the measures referred to in Article 1(2) of this Regulation; and  

(b)  where the measure consists of the suspension of an obligation under any of the 
agreements  referred  to  in  Article  1(1),  to  impose  restrictions  on  trade, 
investment  or  other  activities  within  the  scope  of  the  agreement  concerned 
which would otherwise be precluded by the suspended obligation.  

Where appropriate, those implementing acts shall specify the duration of the adopted 
measures.  

2. 

The measures to be adopted pursuant to paragraph 1 shall be determined on the basis 
of the following criteria, in light of available information and of the Union's general 
interest: 

(a) 

effectiveness  of the measures in  inducing compliance of the United Kingdom 
with the agreements referred to in Article 1(1); 

(b)  potential  of  the  measures  to  provide  relief  to  economic  operators  within  the 

Union affected by the measures of the United Kingdom; 

(c) 

(d) 

(e) 

availability  of  alternative  sources  of  supply  for  the  goods  or  services 
concerned, in order to avoid or minimise any negative impact on downstream 
industries,  contracting  authorities  or  entities,  or  final  consumers  within  the 
Union; 

avoidance  of  disproportionate  administrative  complexity  and  costs  in  the 
application of the measures; 

any  specific  criteria  that  may  be  established  in  the  agreements  referred  to  in 
Article 1(1) in connection with the measures referred to in Article 1(2). 

The  Commission  shall  be  empowered  to  amend,  suspend  or  repeal  the  measures 
referred to in Article 1(2) by means of implementing acts. Where appropriate, those 
implementing acts shall specify the duration of the suspension.  

Where  there  is  a  particular  concern  of  one  or  more  Member  States,  that  or  those 
Member States may request the Commission to adopt measures referred to in Article 
1(2). If the Commission does not respond positively to such a request, it shall inform 
the Council in a timely manner of its reasons. 

3. 

4. 

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5. 

6. 

7. 

1. 

2. 

3. 

If,  due  to  persisting  significant  divergences,  rebalancing  measures  referred  to  in 
Article  1(2),  point  (c),  of  this  Regulation  last  for  more  than  a  year,  one  or  more 
Member States may request the Commission to activate the review clause provided 
for in Article 411 of the Trade and Cooperation Agreement. The Commission shall 
examine this request in a timely manner and shall consider seizing as appropriate the 
Partnership Council of that  matter, in  accordance with  the provisions set out  in  the 
Trade and Cooperation Agreement. If the Commission does not respond positively to 
such a request, it shall inform the Council in a timely manner of its reasons. 

The  implementing  acts  referred  to  in  paragraphs  1  and  3  of  this  Article  shall  be 
adopted in accordance with the examination procedure referred to in Article 3(2).  

On  duly  justified  imperative  grounds  of  urgency,  the  Commission  shall  adopt 
immediately applicable implementing acts in accordance with the procedure referred 
to in Article 3(3).  

Article 3 
Committee procedure 

The Commission shall be assisted by the UK Committee. That committee shall be a 
committee within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply. 

Where  reference  is  made  to  this  paragraph,  Article  8  of  Regulation  (EU)  No 
182/2011, in conjunction with Article 5 thereof, shall apply. 

Article 4 
Relation to other provisions of Union law 

This Regulation shall apply notwithstanding any provisions of Union law adopted on the basis 
of the Treaty on the Functioning of the European Union that govern the same subject matter. 

Article 5 
Review 

By  [Publications  Office:  Please  insert  the  date  five  years  after  the  entry  into  force  of  this 
Regulation], the Commission shall present a report to the European Parliament, the Council, 
the  European  Economic  and  Social  Committee  and  the  Committee  of  the  Regions  on  the 
application of this Regulation. 

Article 6 
Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

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This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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