REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation and application of the Trade and Cooperation Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland 1 January – 31 December 2023
Date: 2024-03-21
Institutions: European Commission, Secretariat-General
Subjects: United Kingdom, application of EU law, cooperation agreement (EU), cooperation policy, trade agreement, trade agreement (EU)

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 21.3.2024  COM(2024) 127 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation and application of the Trade and Cooperation Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland               1 January – 31 December 2023  
 
 
Contents 

1. 

Introduction .................................................................................................................................... 2 

2. 

Institutional framework .................................................................................................................. 2 

3.  Enforcement tools, dispute settlement and complaints ................................................................ 4 

3.1. 

3.2. 

3.3. 

Enforcement tools ............................................................................................................... 4 

Dispute settlement ............................................................................................................. 4 

Complaints .......................................................................................................................... 5 

4. 

Sectoral implementation ................................................................................................................. 5 

4.1. 

Trade in goods ..................................................................................................................... 5 

4.2. 
small and medium-sized enterprises .................................................................................................. 9 

Services and investment, digital trade, intellectual property, public procurement and 

4.3. 

4.4. 

4.5. 

4.6. 

4.7. 

4.8. 

Energy ............................................................................................................................... 12 

Transport ........................................................................................................................... 13 

Fisheries ............................................................................................................................ 14 

Social security coordination .............................................................................................. 15 

Law enforcement and judicial cooperation in criminal matters ....................................... 15 

Association of the United Kingdom to certain EU programmes ....................................... 16 

5.  Developments in the law of the United Kingdom ......................................................................... 17 

5.1. 

5.2. 

Cross-cutting matters ........................................................................................................ 17 

Level playing field for open and fair competition and sustainable development ............ 18 

6.  Conclusions ................................................................................................................................... 20 

Annex 1: Meetings in 2023 of the joint bodies and other structures established by the TCA ............. 21 

Annex 2: Overview of the actions for implementation agreed by the Partnership Council on 24 March 
2023 ............................................................................................................................................... 22 

Annex  3:  Decisions  and  recommendations  adopted  by  the  Partnership  Council  or  Committees 
established by the Trade and Cooperation Agreement ................................................................ 23 

1 

 
 
 
 
 
 
1. Introduction 

The relationship between the European Union (EU) and the United Kingdom of Great Britain 
and Northern Ireland (United Kingdom) in 2023 was marked by the adoption of the Windsor 
Framework1,  paving  the  way  for  constructive  cooperation  between  the  parties,  who  also 
jointly  committed  to  fully  exploit  the  potential  of  the  Trade  and  Cooperation  Agreement 
(TCA)2.  

The TCA, which  has  applied since 1 January 2021,  covers  a wide  range  of areas  including 
trade, transport, fisheries, energy, social security coordination, law enforcement and judicial 
cooperation in criminal matters, while ensuring a level playing field for fair competition and 
sustainable development, as well as respect for fundamental rights.  

This  is  the  Commission’s  third  report  on  the  implementation  of  the  TCA,  as  required  by 
Article 2(4) of Council Decision (EU) 2021/689 of 29 April 20213. It presents an overview of 
the  main  developments  in  the  functioning  of  the  governance  structures  established  by  the 
TCA  (Section  2)  and  in  relation  to  enforcement  tools,  dispute  settlement  and  complaints 
(Section  3).  The  report  also  summarises  the  progress  made  in  the  areas  falling  within  the 
remit  of the TCA (Section 4) and outlines legislative developments  in  the United Kingdom 
that are relevant to the implementation of the TCA (Section 5).  

2. Institutional framework 

Throughout 2023, the joint bodies and other structures established under the TCA were active 
in monitoring and facilitating its implementation. Thirty meetings were held across all policy 
areas covered by the TCA. This was more than with any other third country with which the 
EU has a comparable relationship in terms of trade and cooperation.  The list of meetings is 
presented in Annex 1. The Commission publishes the agendas and minutes of the meetings of 
joint bodies online4. 

The Partnership Council,  the main body  set  up  under Article 7 of the  TCA  to  oversee its 
implementation  at  political  level,  met  on  24  March  2023.  The  EU,  represented  by  Vice-
President Maroš Šefčovič, and the United Kingdom, represented by Foreign Secretary James 
Cleverly,  reaffirmed  their  desire  to  fully  exploit  the  potential  of  the  TCA.  They  confirmed 
their commitment to advance work on the electricity trading arrangements and the association 

1 Windsor Political Declaration by the European Commission and the Government of the 
United Kingdom: https://commission.europa.eu/system/files/2023-02/political%20declaration.pdf  
2    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 
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A22021A0430%2801%29  
3  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  L149/2)  https://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:32021D0689&from=EN.  
4 Meetings of the EU-UK Partnership Council and Specialised Committees under the Trade and Cooperation 
Agreement: https://ec.europa.eu/info/strategy/relations-non-eu-countries/relations-united-kingdom/eu-uk-trade-
and-cooperation-agreement/meetings-eu-uk-partnership-council-and-specialised-committees-under-trade-and-
cooperation-agreement_en. 

2 

 
 
 
of the United Kingdom to Union programmes. They also agreed to take forward work on  a 
memorandum  of  understanding  on  financial  services,  cooperation  in  intellectual  property 
issues,  the  setting  up  of  the  working  groups  under  Article  9  of  the  TCA  and  the  launch  of 
dialogues on cyber issues and counterterrorism. Annex 2 to this report provides the full list of 
the agreed actions and a summary of the progress made in 2023 to implement them. 

The  19  Committees  set  up  under  Article  8  of  the  TCA  to  monitor  its  implementation  in 
specific  areas  met  throughout  the  year  to  discuss  a  wide  range  of  issues  falling  within  the 
remit of their respective powers. These meetings provided an opportunity to review progress 
on the commitments made in the TCA and to hold technical discussions on  various matters 
related  to  their  implementation,  including  upcoming  regulatory  developments.  Several 
decisions and recommendations were adopted, a summary of which is presented in Annex 3. 

The Parliamentary Partnership Assembly (PPA), set up in accordance with Article 11 of 
the  TCA,  met  twice  in  2023.  At  the  meeting  on  3  and  4  July  in  Brussels,  parliamentarians 
discussed, amongst other issues, cooperation between the EU and the United Kingdom in the 
areas  of  trade  and  industrial  policy5.  Beyond  the  scope  of  the  TCA,  the  PPA  adopted  a 
recommendation on common efforts to support Ukraine and cooperation on sanctions6. At the 
meeting on 4 and 5 December in London, parliamentarians discussed climate and fisheries, as 
well as some issues that fall outside the scope of the TCA such as the mobility of people, on 
which the PPA made a recommendation to the Partnership Council7. 

Representatives of civil society continued to be involved in the implementation of the TCA. 
The EU Domestic Advisory Group (DAG), set up according to Article 13 of the TCA, met 
several times8. The EU  DAG  drew up an  agenda of issues and  recommendations  reflecting 
the  views  of  civil  society  about  the  implementation  of  the  TCA  and  broader  EU-United 
Kingdom relations (the EU-UK Relations Issues Tracker)9. The Commission takes this input 
into account in its interactions with the United Kingdom on implementing the TCA. 

Furthermore,  the  Civil  Society  Forum,  created  under  Article  14  of  the  TCA  to  conduct  a 
dialogue  on  the  implementation  of  Part  Two  of  the  TCA,  which  covers  trade,  transport, 
fisheries  and  other  arrangements,  was  held  on  7  November  2023  in  London.  The  meeting 
focused  on  implementation  issues  related  to  trade  in  goods  and  services,  regulatory 
cooperation, the level playing field, energy and climate10. The Commission takes account of 
the views expressed in the Civil Society Forum by civil society organisations, trade unions, 
EU  businesses  and  other  workers’  organisations.  The  Commission  seeks  to  promote  their 
interests in discussions with the United Kingdom on the implementation of the TCA. 

5 Agendas of the meetings: https://www.europarl.europa.eu/delegations/en/d-uk/home  
6  Recommendation on EU-UK common effort to support Ukraine and effective cooperation 
on sanctions: https://www.europarl.europa.eu/cmsdata/273042/3rd%20PPA%20-
%20recommendation%20on%20common%20support%20to%20Ukraine.pdf  
7PPA recommendation, 4-5 December 2023: Youth mobility schemes, student exchanges, school 
trips, and touring artists: https://www.europarl.europa.eu/cmsdata/279312/Final%20Recommendation%20-
%204th%20EU_UK%20PPA.pdf  
8 Minutes of the meetings: https://www.eesc.europa.eu/en/sections-other-bodies/other/eu-domestic-advisory-
group-under-eu-uk-tca/events 
9 EU-UK relations Issues Tracker: https://www.eesc.europa.eu/sites/default/files/files/eu-
uk_relations_issues_tracker_december_2022_january_update_0.pdf  
10  Agenda of the meeting: https://policy.trade.ec.europa.eu/events/second-eu-uk-trade-and-cooperation-
agreement-civil-society-forum-2023-11-07_en   

3 

 
 
 
3. Enforcement tools, dispute settlement and complaints 

The Commission put in place mechanisms to enforce the commitments made in the TCA, to 
settle disputes that may arise and to deal with complaints from stakeholders in the EU.    

3.1. 

Enforcement tools 

Two regulations were adopted in 2023 to enable the EU to exercise its rights in implementing 
and enforcing the agreements concluded with the United Kingdom in an effective and timely 
manner. These are:  the Regulation11 covering the Withdrawal  Agreement12 and the TCA as 
regards the matters falling within the scope of the Treaty on the Functioning of the European 
Union, and the Regulation13 covering the TCA as regards the matters falling within the scope 
of the Euratom Treaty.  

These  regulations  provide  a  legal  basis  for  the  Commission  to  adopt  unilateral  and 
enforcement  measures  as  set  out  in  the  TCA  and  the  Withdrawal  Agreement.  In  particular, 
the Commission will be able to suspend its obligations under the TCA if the United Kingdom 
does  not  comply  with  a  ruling  of  the  arbitration  tribunal  set  up  under  the  TCA14  or  the 
Withdrawal  Agreement.  In  certain  cases, the Commission  will be able to  act  unilaterally to 
protect  EU  interests  without  resorting  to  arbitration,  for  example,  where  a  subsidy  in  the 
United Kingdom would entail the risk of a significant negative effect on trade or investment 
between the two parties15. 

3.2.  Dispute settlement 

While the list of arbitrators established under Article 752 of the TCA was adopted in 202216, 
work continued in 2023 on the list of members of the panel of experts to assess level playing 
field issues in accordance to Article 409(3) of the TCA. On 23 March 2023, the EU formally 

11Regulation (EU) 2023/657 of the European Parliament and of the Council of 15 March 2023 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: https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=CELEX%3A32023R0657. 
12 Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the 
European Union and the European Atomic Energy Community 2019/C 384 I/01: https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=CELEX%3A12019W%2FTXT%2802%29.  
13Council Regulation (Euratom) 2023/1479 of 14 July 2023 laying down rules for the exercise of the 
Community’s rights in the implementation 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: https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=uriserv%3AOJ.L_.2023.182.01.0086.01.ENG&toc=OJ%3AL%3A2023%3A182%3ATO
C.  
14 Article 749(4) of the TCA 
15 Article 374(3) TCA 
16 Decision No 3/2022 of the Partnership Council established by 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 of 21 December 2022 establishing a list of individuals who 
are willing and able to serve as members of an arbitration tribunal under the Trade and Cooperation Agreement:  
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:22022D2550  

4 

 
 
 
proposed to the United Kingdom a list of individuals willing and able to serve as panellists 
and chairpersons of a panel of experts17. The United Kingdom sent its proposal to the EU on 
13  July  2023.  Based  on  these  respective  proposals,  a  list  of  at  least  15  individuals  is  to  be 
drawn  up  by  the  Trade  Specialised  Committee  on  Level  Playing  Field  for  Open  and  Fair 
Competition and Sustainable Development. It is forecast that this list will be completed in the 
first half of 2024. 

3.3.  Complaints 

In  2023,  six  complaints  were  submitted  through  the  centralised  tools  set  up  by  the 
Commission18. One of these submissions was declared ineligible, as it had been submitted by 
an  entity  from  the  United  Kingdom.  The  five  remaining  submissions  concerned  issues  that 
fall  outside  the  scope  of  the  TCA19.  They  were  redirected  to  the  relevant  Commission 
departments for reply. 

4. Sectoral implementation 

The sectoral implementation of the TCA worked well. All the implementation commitments 
that were due for 2023 or early 2024 were completed or on track. 

This  section sets  out the main achievements,  as well as the key policy developments  in  the 
United Kingdom in the various areas. It also quantifies, where possible, trade flows between 
the EU and the United Kingdom. 

4.1. 

Trade in goods 

Overall, the trade-related arrangements set out in the TCA worked very well.  

In  accordance  with  Article  31  of  the  TCA,  the  EU  and  the  United  Kingdom  exchanged  in 
2023  import  statistics20.  These  show  that  preference  utilisation  rates21  remain  high  and  are 
comparable to those of the previous year: 88.4% of EU preference eligible goods exported to 
the  United  Kingdom  and  81.2%  of  preference  eligible  goods  imported  from  the  United 
Kingdom  made  use  of  the  preferences  under  the  TCA.    These  rates  are  among  the  highest 
compared  to  the  preference  utilisation  rates  under  EU  free  trade  agreements  with  other 
partners22. 

17 https://commission.europa.eu/system/files/2023-
04/Letter%20to%20Secretary%20of%20State%20Rt%20Hon%20James%20Cleverly%20MP.pdf  
18 https://ec.europa.eu/assets/sg/complaint_eu_uk_tca/complaints_en/ and https://trade.ec.europa.eu/access-to-
markets/en/content/single-entry-point-0  
19 These submissions concerned the immigration rules for homeowners, recognition of certain medical training, 
cash controls at the border, data protection in visa processes, and student mobility. 
20 The data covers the year 2022. 
21 The preference utilisation rate reflects the share of imports or exports entering under trade preferences as a 
share of the total value of imports or exports eligible for preferences by partner country.  
22 For details see the Report from the Commission to the European Parliament, the Council, the European 
Economic and Social Committee and the Committee of the Regions on the Implementation and Enforcement of 
EU Trade Policy: https://policy.trade.ec.europa.eu/enforcement-and-protection/implementing-and-enforcing-eu-
trade-agreements_en  

5 

 
 
 
Commitments under the TCA that were due to be completed were fulfilled in a satisfactory 
and  timely  manner  for  trade  in  organic  products.  The  EU  and  the  United  Kingdom 
completed  the  reassessment  of  the  mutual  recognition  of  equivalence  of  each  other's 
legislation  in  accordance  with  Article  3(3)  of  Annex  14  to  the  TCA.  Following  the 
reassessment,  the  Commission  adopted  a  decision23  on  6  December  2023  confirming  the 
recognition  of  equivalence,  in  line  with  Article  5(1)(a)  of  the  Council  Decision  on  the 
conclusion  of  the  TCA24.  In  the  United  Kingdom,  the  recognition  of  EU  equivalence  was 
confirmed  through  a  ministerial  decision  adopted  on  the  same  day.  The  online  register25  in 
the  United  Kingdom  reflects  the  continued  recognition  of  the  EU.  As  a  result  of  the 
reassessment, trade in organic products covered by the TCA can continue uninterrupted after 
2023.  

At  its  meeting  in  October  2023,  the  Trade  Specialised  Committee  on  Technical  Barriers  to 
Trade completed the review of further steps to facilitate trade in wine, which had been due 
within 3 years of the entry into force of the TCA, in accordance with Article 7 of Annex 15.  

To facilitate cooperation between the EU and the United Kingdom on value added tax and 
claims  concerning  taxes  and  duties,  the  responsible  Committee  adopted  the  decisions26 
necessary to fully implement 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  customs  duties  (VAT  Protocol)  referred  to  in  Article  120  of  the  TCA.  As  a 
result,  the  VAT  Protocol  can  be  fully  implemented  as  soon  as  the  necessary  electronic 
systems  become  operational,  which  is  expected  in  the  course  of  2024.  This  will  allow  the 
Member  States  to  better  enforce  EU  VAT  rules,  as  well  as  to  recover  taxes  and  customs 
duties from businesses in the United Kingdom that supply customers in the EU.  

As  regards  rules  of  origin,  on  21  December  2023,  the  Partnership  Council  adopted  a 
decision27 extending the  current  product-specific  rules of origin  for batteries and electrified 
vehicles  by  3  years  until  31  December  2026.  The  Partnership  Council  highlighted  that  this 
was a one-off measure. To avoid tariffs beyond this date, stakeholders must use the additional 
3  years  to  adapt  supply  chains  so  that  vehicles  destined  for  export  to  the  other  party  are 
equipped with batteries complying with the rules of origin laid out in the TCA. To ensure the 

23 Commission Decision (EU) 2023/2719 of 6 December 2023 on the confirmation of equivalence recognition 
with regard to organic products provided for in Annex 14 to 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: https://eur-lex.europa.eu/eli/dec/2023/2719.  
24 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  L149/2)  https://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:32021D0689&from=EN.  
25 https://www.gov.uk/government/publications/organic-registers-lists-of-third-countries-or-territories-control-
bodies-and-control-authorities  
26 See Annex 3 for details. 
27  Decision No 1/2023 of the Partnership Council as regards the transitional product-specific rules for electric 
accumulators and electrified vehicles:  https://commission.europa.eu/publications/decision-no-12023-
partnership-council-regards-transitional-product-specific-rules-electric_en.  

6 

 
 
 
one-off nature of this extension, the Partnership Council has also limited its future powers to 
amend these product-specific rules again28. 

On developments in the United Kingdom, a new approach to security checks on goods from 
the  EU,  including  sanitary  and  phytosanitary  requirements,  set  to  be  progressively 
introduced from October 2023, was announced on 5 April 202329. However, on 29 August, 
with the publication of the Border Target Operating Model30, the United Kingdom decided to 
phase in full border checks for imports from the EU in the course of 2024. 

The  late  publication  of  the  final  Border  Target  Operating  Model  and  the  lack  of  detail  on 
many  of  its  provisions,  together  with  delays  in  introducing  electronic  certification  by  the 
United  Kingdom,  raised  significant  concerns  in  the  EU  about  the  exact  requirements  and 
procedures  that  EU  exports  would  face.  Moreover,  additional  administrative  requirements, 
costs31 and possible long delays at the border could have a dissuasive effect on the export of 
agri-food products to the United Kingdom.  

Although the responsibility for developing and implementing a workable import regime lies 
with  the  United  Kingdom,  to  help  EU  stakeholders  to  prepare  for  the  new  import 
requirements,  the  Commission  sought  the  necessary  clarifications  from  the  United 
Kingdom’s authorities through the channels set up by the TCA, such as the Trade Specialised 
Committees on Sanitary and Phytosanitary Measures and on Customs Cooperation and Rules 
of  Origin.  The  Commission  used  structures  such  as  the  Domestic  Advisory  Group  and  the 
Market Access Advisory Committee to liaise with stakeholders in the EU. 

On 1 August 2023, the Department for Business and Trade announced an indefinite extension 
of the use of the CE marking for 18 product categories falling under its remit32. This means 
that EU manufacturers  of these product  categories do not  have to  affix  the UK Conformity 
Assessed marking (UKCA) to  place goods  on the  market  in  Great  Britain but  can continue 
using  the  CE  marking  to  confirm  that  products  meet  safety,  health  and  environmental 
protection requirements. Nor is it necessary to undergo a third-party  conformity assessment 
in  the  United  Kingdom.  It  is  not  yet  clear  whether  other  government  departments  in  the 
United Kingdom will allow the continued use of the CE marking for other product categories.  

The trade flows between the EU and the United Kingdom developed as follows in 202333. 

In  the  first  three  quarters  of  2023,  the  EU  exported  goods  worth  EUR  251  billion  to  the 
United Kingdom, which represents an increase of 2.8% compared to the same period in 2022 

28 https://ec.europa.eu/commission/presscorner/detail/en/ip_23_6707  
29 The Border Target Operating Model: Draft for Feedback: https://www.gov.uk/government/publications/the-
border-target-operating-model-draft-for-feedback.  
30 The Border Target Operating Model: https://www.gov.uk/government/publications/the-border-target-
operating-model-august-2023.  
31 The government of the United Kingdom estimated that the new border checks on animal and plant products 
imported from the EU would cost businesses around £330 million a year in additional administrative costs: 
https://www.ft.com/content/015e1f25-0725-49f1-9a7d-bf9ec0dc4678.  
32https://www.gov.uk/government/news/uk-government-announces-extension-of-ce-mark-recognition-for-
businesses?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=16bd8618-3575-44cc-
b015-b8fa30cc34c5&utm_content=immediately.  
33 All figures are based on Eurostat data. 

7 

 
 
 
and 3.5% compared to the same period in 201934. The value of EU imports from the United 
Kingdom  in  the  first  three  quarters  of  2023  was  EUR  139  billion,  representing  a  15.7% 
decrease  compared  to  the  same  period  in  2022  and  a  fall  of  4.2%  compared  to  the  same 
period  in  2019.  In  2023,  the  EU  ran  a  sizeable  trade  surplus  with  the  United  Kingdom 
amounting to EUR 112 billion.  

Comparing EU trade with the United Kingdom to EU trade with the rest of the world in the 
first  three  quarters  of  2023,  EU  exports  to  other  non-EU  countries  increased  by  0.5% 
compared to the same period in 2022 and by 23.5% compared to the same period in 2019. EU 
imports from  other  third countries  fell by  15.2% compared to  the same  period in  2022 and 
increased by 35.1% compared to 2019.  

Figure 1: EU trade in goods with the United Kingdom compared to EU trade with the rest of the world, first three quarters 
of 2019, 2022 and 2023, EUR billion. Source: Eurostat  

In the first three quarters of 2023, total trade in  goods with the United Kingdom accounted 
for 10.2% of the EU’s trade with its international partners, representing a slight increase from 
9.9% in 2022 and a decrease from 12.7% in 2019. 

The  United  Kingdom  was  the  destination  of  13.2%  of  EU  exports  (compared  to  12.9%  in 
2022 and 15.3% in 2019), second to the United States (19.5%). The United Kingdom was the 
origin of 7.3% of the EU’s imports (compared to 7.3% in 2022 and 10.00% in 2019), in third 
place behind China (20.4%) and the United States (13.5%).  

34 In 2019, data on trade with the United Kingdom was based on statistical concepts applicable to trade between 
the EU Member States. Since January 2021, data on trade with the United Kingdom has aggregated EU trade 
with  the  United  Kingdom  excluding  Northern  Ireland,  using  the  same  statistical  concepts  as  for  trade  with  a 
non-EU partner country, and data on the EU’s trade with Northern Ireland that uses the same statistical concepts 
as for trade between Member States. Trade in goods with the United Kingdom is published by Eurostat in EU’s 
datasets for trade with non-EU countries (‘extra-EU’ data). 

8 

 
 
 
 
45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

China

US

UK

2019

2022

Total

2023

2019

2022

2023

2019

2022

2023

Imports

Exports

Figure  2:  EU  trade  in  goods  with  its  top  three  international  partners,  first  three  quarters  of  2019,  2022  and  2023,  (%). 
Source: Eurostat  

The sectors where EU exports to the United Kingdom showed the strongest increase in 2023 
compared  to  2022  were  machinery  and  transport  equipment  (+14%),  and  food,  drinks  and 
tobacco (+11%). EU imports from the United Kingdom in 2023 increased only for machinery 
and transport equipment (+15%), and food, drinks and tobacco (+4%), while they decreased 
for all other categories of products. 

s
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2023

2022

2019

2023

2022

2019

0

50

100

Food, drinks and tobacco [SITC0_1]
Mineral fuels, lubricants and related materials [SITC3]
Machinery and transport equipment [SITC7]
Other commodities and transactions [SITC9]

150
Raw materials [SITC2_4]
Chemicals and related products, n.e.s. [SITC5]
Other manufactured goods [SITC6_8]

200

250

Figure 3: EU trade in goods with the United Kingdom by the Standard International Trade Classification (SITC) for goods, 
first three quarters of 2019, 2022 and 2023, EUR billion. Source: Eurostat  

4.2. 

Services and investment, digital trade, intellectual property, public 
procurement and small and medium-sized enterprises 

There were no significant implementation problems in the areas of services and investment, 
digital  trade,  intellectual  property,  public  procurement  and  small  and  medium-sized 
enterprises.  

9 

 
 
 
  
 
 
At  its  meeting  in  October  2023,  the  Trade  Specialised  Committee  on  Services,  Investment 
and  Digital  Trade  completed  the  review  of  the  implementation  of  the  provision  on  cross-
border data flows, which had been due within 3 years of the entry into force of the TCA, in 
accordance with Article 201(2).  

As  regards  the  recognition  of  professional  qualifications,  the  Commission  assessed  the 
Joint Recommendation submitted in October 2022 by the Architects’ Council of Europe and 
the Architects Registration Board in the United Kingdom, pursuant to Article 158(3) of the 
TCA, as well as a draft mutual recognition agreement.  

In the Commission’s view the proposal was unbalanced and prejudicial to EU architects, as it 
would give architects who qualified in the United Kingdom a level of recognition similar to 
that which they enjoyed when the United Kingdom was a Member State, whereas architects 
who  qualified  in  an  EU  Member  State  would  be  required  to  sit  specific  professional 
examinations in the United Kingdom. This asymmetry is not justified on any of the possible 
grounds for compensatory measures set out in the TCA. The professional bodies submitted a 
revised version of the joint recommendation and a draft mutual recognition agreement, which 
do not address this asymmetry. The Commission considers that these documents are not an 
adequate basis to start negotiations. 

Discussions  continued  with  the  United  Kingdom on  its  Global  Business Mobility  rules  and 
the  difficulties  faced  by  EU  operators,  in  particular  the  burdensome  sponsorship 
requirements  that  EU  service  suppliers  must  fulfil  to  provide  a  service  in  the  United 
Kingdom35. The Commission will continue to seek a resolution.   

In the area of intellectual property, discussions began between the EU Intellectual Property 
Office and the United Kingdom’s Intellectual Property Office on improving cooperation, as 
provided for in Article 273 of the TCA, by means of a memorandum of understanding.  

Trade flows between the EU and the United Kingdom developed as follows in 202336. 

In  the  first  three  quarters  of  2023,  the  EU  exported  services  worth  EUR  197  billion  to  the 
United Kingdom,  which represents  a  5.2%  increase  on the same period  in  2022 and  18.2% 
more than in  the same period  of 2019. The value of EU imports from  the United Kingdom 
was EUR 152 billion, representing a 4.6% increase compared to the same period in 2022 and 
17.9% more compared to 2019. In 2023, the EU ran a trade surplus with the United Kingdom 
amounting to EUR 45 billion.  

When comparing EU trade with the United Kingdom to EU trade with the rest of the world, 
in  the  first  half  of  2023,  EU  exports  to  other  third  countries  marginally  decreased  by  0.4% 
compared to the same period in 2022 and increased by 28.7% compared to 2019. EU imports 
from  other  third  countries  increased  by  4.9%  compared  to  the  same  period  in  2022  and  by 
28.8% compared to 2019. 

35 For further details, see Section 3.2. of the Commission’s second report on the implementation of the TCA: 
https://commission.europa.eu/system/files/2023-03/COM_2023_118_en.PDF.  
36 All figures are based on Eurostat data.  

10 

 
 
 
0

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300

400

500

600

700

800

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2022

2019

2023

2022

2019

Extra-EU without UK

UK

Figure 4: EU trade in services with the United Kingdom compared to EU trade with the rest of the world, three quarters of 
2019, 2022 and 2023, EUR billion. Source: Eurostat 

In the first three quarters of 2023, total trade in services with the United Kingdom accounted 
for 19.1% of the EU’s total trade with its international partners, representing a slight increase 
from 18.7% in 2022 and a decrease compared to 2019 (20.5%). 

The  United  Kingdom  was  the  destination  of  20.1%  of  EU  exports  in  2023  (compared  to 
19.2%  in  2022  and  21.5%  in  2019),  second  to  the  United  States  (21.7%).  The  United 
Kingdom  was  the  origin  of  18.0%  of  the  EU’s  imports  (compared  to  18.0%  in  2022  and 
19.3% in 2019), second to the United States (33.6%).  

60%

50%

40%

30%

20%

10%

0%

2019

2022

Total

2023

2019

2022

2023

2019

2022

2023

Imports

Exports

US

UK

Switzerland

Figure 5:  EU trade in services with its top three international partners, first three quarters of 2019, 2022 and 2023, (%). 
Source: Eurostat 

11 

 
 
 
 
The sectors where EU exports to the United Kingdom showed the strongest increase in 2023 
compared to 2022 were travel (+19.2%) and insurance and pension services (+12.4%). Travel 
also  showed  the  largest  increase  for  EU  imports  from  the  United  Kingdom  (+19.3%), 
followed by telecommunication and computer services (+8.8%).  

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

200,0

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2023

2022

2019

2023

2022

2019

Transport services

Insurance and pension

Charges for the use of IP

Other business services

Travel

Financial services

Telecom and computer

Other (SA, SB, SE, SK, SL, services not allocated)

Figure 6: EU trade in services with the United Kingdom in the first three quarters of 2023 compared to the same period of 
2022 and 2019, by type of service37, EUR billion. Source: Eurostat 

4.3. 

Energy 

In  view  of  the  current  geopolitical  context,  it  is  particularly  important  to  strengthen 
cooperation  on  energy  between  the  EU  and  the  United  Kingdom.  The  significance  of 
cooperation  in  this  area  was  underlined  at  the  second  meeting  of  the  Partnership  Council. 
However, the full implementation of the energy provisions in the TCA remained challenging 
due to the complexity of the file.  

Only partial progress was made in implementing the new electricity trading arrangements 
provided for in Article 312 and Annex 29 of the TCA. Following the recommendation of the 
Specialised  Committee  on  Energy  of  7  February  2023,  the  Transmission  System  Operators 
from the EU and the United Kingdom submitted additional information. This information did 
not  identify  a  clear  way  forward  for  the  adoption  of  the  new  arrangements,  as  concerns 
remained  about  how  robust  and  future-proof  the  potential  solutions  would  be.  The 
Specialised  Committee  on  Energy  continues  to  explore  options  and  ways  to  address  these 
concerns. 

In the context of the efforts to diversify away from Russian fuels, cooperation under Article 
315  of  the  TCA  on  security  of  supply  continued  to  be  of  great  importance.  In  2023,  gas 
supplies  from  the  United  Kingdom  to  the  EU  remained  high.  This  contributed  to  the  EU’s 

37 The types of services included under ‘Other’ are: SA - manufacturing services on physical inputs owned by 
others, SB - maintenance and repair services, SE – construction, SK - personal, cultural, and recreational 
services, SL – government goods and services and services not allocated.  

12 

 
 
 
 
 
 
security of supply and diversification of energy sources. In anticipation of the winter of 2023-
2024, technical exchanges were held on gas and electricity preparedness and on the safety of 
offshore operations.  

In accordance with Article 319 of the TCA on renewable energy and energy efficiency, the 
EU  informed  the  United  Kingdom  of  its  more  ambitious  targets  resulting  from  the  revised 
Renewable Energy Directive38 and the Energy Efficiency Directive39.  

Cooperation on the development of offshore renewable energy made progress, in line with 
Article  321  of  the  TCA,  and  under  the  umbrella  of  the  Memorandum  of  Understanding  on 
offshore  renewable  energy  cooperation  between  the  participants  of  the  North  Seas  Energy 
Cooperation and the United Kingdom40.  

The  EU  and  the  United  Kingdom  also  took  steps  to  facilitate  cooperation  between  their 
transmission system operators and regulatory authorities, as provided for in Articles 317 
and  318  of  the  TCA.  It  is  expected  that  working  arrangements  between  both  parties’ 
transmission system operators for gas and electricity41 and the regulatory authorities42 will be 
put in place in 2024. 

4.4. 

Transport 

Implementation of the TCA in the area of transport was unproblematic and focussed on the 
effective exercise of the rights mutually granted by the parties.  

In the area of aviation safety, out of 18 applications for validation of certificates issued by 
the United Kingdom’s Civil Aviation Authority, 1 was approved by the EU Aviation Safety 
Agency (EASA) on the basis of Article 446 in conjunction with Annex 30 of the TCA. With 
the  support  of  the  EASA,  the  United  Kingdom  authorities  validated  4  out  of  5  projects 
submitted by EU applicants. These figures are within the expected range of activity in terms 
of validation. 

38 Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending 
Directive (EU) 2018/2001, Regulation (EU) 2018/1999 and Directive 98/70/EC as regards the promotion of 
energy from renewable sources, and repealing Council Directive (EU) 2015/652: https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=CELEX%3A32023L2413&qid=1699364355105. 
39 Directive (EU) 2023/1791 of the European Parliament and of the Council of 13 September 2023 on energy 
efficiency and amending Regulation (EU) 2023/955 (recast): https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=OJ%3AJOL_2023_231_R_0001&qid=1695186598766.  
40 Memorandum of understanding on offshore renewable energy cooperation between the participants of the 
North Seas Energy Cooperation (NSEC), of the one side, and the United Kingdom of Great Britain and Northern 
Ireland, of the other side: https://energy.ec.europa.eu/system/files/2022-
12/NSEC%20UK%20MoU%20signed.pdf.  
41 The European Network of Transmission System Operators for Electricity and the European Network of 
Transmission System Operators for Gas in the EU and the transmission system operators for electricity and gas 
in the United Kingdom. 
42 The EU Agency for the Cooperation of Energy Regulators and the regulatory authority in the United 
Kingdom. 

13 

 
 
 
In the area of air transport, by the end of 2023, there were 23 bilateral agreements43 on all-
cargo  services  between  an  EU  Member  State  and  the  United  Kingdom  in  accordance  with 
Articles  419(4)  and  (9)  of  the  TCA.  Two  of  these  agreements  (with  Croatia  and  Slovenia) 
were concluded in 2023. 

In  the  area  of  road  transport,  the  Specialised  Committee  on  Road  Transport  adopted  a 
decision44 pursuant to Article 468(5) and Article 2(2) of Section 4 of Part B of Annex 31 of 
the  TCA,  adapting  the  technical  specifications  of  the  smart  tachograph  2  as  laid  out  in  EU 
law45. As a result, road haulage operators established in the United Kingdom are required to 
equip  their  vehicles  with  smart  tachographs  that  meet  these  technical  specifications  when 
undertaking journeys in accordance with Article 462 of the TCA.    

For the sake of completeness, in the area of rail transport, which is not covered in the TCA, 
on  20  June  2023,  the  Commission  adopted  a  proposal46  for  a  Decision  of  the  European 
Parliament  and  of  the  Council  empowering  the  French  Republic  to  negotiate,  sign  and 
conclude  an  international  agreement  on  the  safety  and  interoperability  requirements  within 
the Channel Fixed Link. 

As  regards  developments  in  the  United  Kingdom,  legislation47  on  cabotage  was  amended, 
revoking the right of EU operators to carry out this type of activity after the unladen journey 
or  in  combination  with  transport  activities  in  the  United  Kingdom.  Also,  the  right  of  EU 
operators  to  carry  out  transport  activities  between  the  United  Kingdom  and  other  non-EU 
countries was removed. According to the United Kingdom, the purpose of these changes was 
to align the level of openness of its market with its obligations under the TCA.   

4.5. 

Fisheries 

Implementation of the TCA’s provisions on fisheries made good progress.  

To  improve  the  sustainable  management  of  the  shared  fishing  stocks,  the  Specialised 
Committee on Fisheries adopted several  decisions and recommendations  in  2023, including 
joint guidelines for notifying management measures to the other party48.  

43 The following Member States have signed bilateral agreements with the United Kingdom: Austria, Belgium, 
Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, 
Ireland, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Slovakia, Slovenia and Sweden. 
44 Decision No 1/2023 of the Specialised Committee on Road Transport established by 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 of 23 November 2023 on 
the adaptation of technical specifications of the smart tachograph 2: https://eur-
lex.europa.eu/eli/dec/2024/293/oj.  
45 Annex IC of Commission Implementing Regulation (EU) 2016/799 as amended by Implementing Regulations 
(EU) 2021/1228[2] and (EU) 2023/ 980: https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=celex%3A32023R0980.  
46 Proposal for a Decision of the European Parliament and of the Council empowering the French Republic to 
negotiate, sign and conclude an international agreement on the safety and interoperability requirements within 
the Channel Fixed Link: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52023PC0328. 
47 The Drivers’ Hours, Tachographs, International Road Haulage and Licensing of Operators (Amendment) 
Regulations 2022: https://www.legislation.gov.uk/uksi/2022/1260/contents/made.  
48 See Annex 3 for details. 

14 

 
 
 
The Commission also continued to discuss with the United Kingdom management measures 
notified under Article 496(3) of the TCA that may affect both parties’ vessels.  

The Commission and the authorities of the United Kingdom, Jersey and Guernsey began  to 
implement the arrangements for the type and the conditions of the fishing activities that the 
EU  fishing  vessels  undertake  in  Jersey’s  and  Guernsey’s  waters,  as  provided  for  in  Article 
502 of the TCA. 

In  December,  the  EU  and  the  United  Kingdom  concluded  their  annual  consultations  to 
determine  the  total  allowable  catches  for  shared  stocks  in  2024  under  Article  498  of  the 
TCA.  The  parties  reached  a  comprehensive  agreement  covering  all  stocks,  thus  securing 
fishing opportunities of over 388 000 tonnes for the EU fleet, estimated to be worth around 
EUR 1 billion based on historic landing prices, adjusted for inflation. 

Finally,  in  its  contacts  with  the  United  Kingdom  throughout  2023,  the  EU  highlighted  the 
importance of establishing the arrangements for reciprocal access to waters from July 2026 
onwards. 

4.6. 

Social security coordination 

Cooperation in this area was constructive, with both parties committed to solving any issues 
that might emerge in the implementation of the  Protocol on Social Security Coordination 
to the TCA (‘the Protocol’).  

To facilitate the transmission of data and to clarify certain financial aspects, the Specialised 
Committee on Social Security Coordination adopted two decisions49. 

Furthermore,  the  Specialised  Committee  on  Social  Security  Coordination  carried  out 
technical  work  on  topics  such  as  additional  minimum  changes  to  structured  electronic 
documents and potential minimal changes to portable documents, procedures to be followed 
for  the  reimbursement  of  the  cost  of  sickness  benefits,  and  the  transposition  of  relevant 
decisions of the Administrative Commission for the Coordination of Social Security Systems. 

4.7. 

Law enforcement and judicial cooperation in criminal matters 

Implemention of the TCA in relation to law enforcement and judicial cooperation functioned 
smoothly.  

In the area of exchanges of DNA profiles and fingerprints, by the end of 2023, 19  Member 
States50  and  the  United  Kingdom  had  given  each  other  access  to  their  national  DNA 
databases for automated searching, in accordance with Article 530 of the TCA.  12 Member 

49 See Annex 3 for details. 
50 Austria, Belgium, Czechia, Finland, France, Germany, Greece, Hungary, Ireland, Latvia, Lithuania, 
Luxembourg, Malta, Netherlands, Poland, Romania, Slovakia, Spain and Sweden 

15 

 
 
 
States51 and the United Kingdom did so in respect of fingerprints, in accordance with Article 
534 of the TCA. 

On  the  transfer  of  Passenger  Name  Record  (PNR)  data  by  air  carriers  to  the  United 
Kingdom for flights between the EU and the United Kingdom, in line with Article 552(15) of 
the  TCA,  the  interim  period  expired  on  31  December  202352.  From  1 January  2024,  the 
United Kingdom must delete a passenger’s PNR data after they leave the United Kingdom, 
unless a risk assessment indicates a need to retain such data. 

To  make  cooperation  in  criminal  matters  easier,  the  Specialised  Committee  on  Law 
Enforcement  and  Judicial  Cooperation  adopted  a  standard  form53  for  requests  for  mutual 
assistance  in  criminal  matters,  as  referred  to  in  Article  635  of  the  TCA.  The  competent 
authorities  have  been  required  to  use  this  form  since  1  September  2023.  It  contains  all  the 
necessary information for a request for mutual assistance. 

4.8.  Association of the United Kingdom to certain EU programmes 

A  major  step  in  the  implementation  of  the  TCA  was  achieved  with  the  association  of  the 
United Kingdom to certain programmes in accordance with Part Five of the TCA, providing 
more opportunities for cooperation in science, research and innovation. 

Protocols  I  and  II,  adopted  on  4  December  2023  by  the  Specialised  Committee  on 
Participation  in  Union  Programmes,  cover  the  specific  terms  and  conditions  for  the  United 
Kingdom’s  participation  in  Horizon  Europe  and  the  Copernicus  component  of  the  Space 
programme  (Protocol  I),  as  well  as  access  to  services  of  the  EU  Space  Surveillance  and 
Tracking  component  of  the  Space  programme  (Protocol  II)  under  the  2021  -  2027 
multiannual  financial  framework.  The  United  Kingdom  chose  not  to  participate  in  the 
Euratom Research and Training Programme and the Fusion for Energy Joint Undertaking.  

The United Kingdom’s association to Horizon Europe took effect on 1 January 2024, making 
it possible for entities from the United Kingdom to sign grant agreements and receive funding 
under  the  relevant  programmes  from  the  fourth  year  of  the  current  multiannual  financial 
framework.  Until  then,  the  Commission’s  transitional  arrangements  for  countries  in  the 
process of becoming associated to Horizon Europe allowed entities from the United Kingdom 
to be evaluated on the same terms as those from countries that were already associated. 

51 Belgium, Bulgaria, Czechia, Denmark, Germany, France, Lithuania, Hungary, Netherlands, Austria, Romania 
and Sweden. 
52 Decision No 2/2022 of the Partnership Council established by 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 of 21 December 2022 as regards the second and last 
extension of the interim period during which the United Kingdom may derogate from the obligation to delete 
Passenger Name Record data of passengers after their departure from the United Kingdom: https://eur-
lex.europa.eu/eli/dec/2022/2549/oj.  
53Decision No 1/2023 of the Specialised Committee established by Article 8(1)® 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, of 19 June 2023 establishing a 
standard form for requests for mutual assistance: https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=uriserv%3AOJ.L_.2023.199.01.0103.01.ENG&toc=OJ%3AL%3A2023%3A199%3AFU
LL.  

16 

 
 
 
5. Developments in the law of the United Kingdom 

The  Commission  continued  to  monitor  closely  legislative  developments  in  the  United 
Kingdom, in particular with regard to their impact on the commitments under the TCA.  

This  section  summarises  developments  in  the  relevant  laws  of  the  United  Kingdom  of  a 
cross-cutting nature (Section 5.1.) and those pertinent to the level playing field (Section 5.2.), 
looking at the most significant legislative proposals (bills) and adopted legislation (acts). In 
cases  where  legislation  was  adopted,  the  report  highlights  its  relevance  for  the  TCA. 
Announcements  of  policy  intentions  and  public  consultations  are  not  covered.  While  these 
may  indicate  a  policy  direction,  it  would  be  premature  to  draw  conclusions  about  their 
relevance for the TCA.  

5.1.  Cross-cutting matters 

In 2023, two important acts were passed, and two bills were tabled that could affect how the 
TCA operates in many areas. One bill that raised significant concerns about its compatibility 
with the European Convention on Human Rights was withdrawn.  

The Retained EU Law (Revocation and Reform) Act54 was passed on 29 June 2023. The 
Act revokes certain retained EU laws by the end of 2023 and removes the special status of all 
retained  EU  law  in  the  United  Kingdom’s  legal  order55.  Furthermore,  the  Act  delegates 
significant powers to the United Kingdom’s authorities to revoke, amend or modify retained 
EU laws.  

The  Commission  closely  followed  developments  in  the  adoption  of  this  legislation  and  its 
compatibility with the United Kingdom’s commitments under the TCA. In their official reply 
to  Vice-President  Šefčovič  and  in  a  series  of  technical  meetings,  the  United  Kingdom’s 
authorities informed the Commission that the objective of the Act is not to lower the levels of 
protection  in  labour,  environment  and  climate-related  matters  under  the  TCA.  However, 
further  monitoring  will  be  necessary  to  ensure  compliance  in  view  of  the  wide-ranging 
empowerment  granted  to  the  United  Kingdom’s  authorities  to  modify  EU  retained  law  and 
the role of its courts in interpreting retained EU legislation56.  

On 20 July 2023, the Illegal Immigration Act57was passed, under which people who enter 
the United Kingdom illegally will not be allowed to stay, but will be detained and promptly 
removed,  either  to  their  home  country  or  to  another  country.  Furthermore,  on  7  December 
2023,  the  Safety  of  Rwanda  (Asylum  and  Immigration)  Bill58  was  introduced,  which 
declares  Rwanda  a  safe  country,  to  which  persons  may  be  removed  from  the  United 

54 Retained EU Law (Revocation and Reform) Act 2023:   
https://www.legislation.gov.uk/ukpga/2023/28/contents/enacted. 
55 Retained EU law is the corpus of EU law that that the United Kingdom carried over at the end of the 
transition period (31 December 2020) to avoid a regulatory cliff-edge.  
56 In this respect, the United Kingdom courts should respect Section 29 of the European Union (Future 
Relationship) Act 2020 that requires domestic law to be read with such modifications that are necessary to 
comply with the TCA. 
57 Retained EU Law (Revocation and Reform) Act 2023: https://www.gov.uk/government/collections/illegal-
migration-bill.  
58 Safety of Rwanda (Asylum and Immigration) Bill: https://bills.parliament.uk/bills/3540/publications.  

17 

 
 
 
Kingdom. In his declaration under Section 19(1)(b) of the United Kingdom’s Human Rights 
Act, the Home Secretary declared that he was ‘[…] unable to make a statement that […] the 
provisions  of  the  Safety  of  Rwanda  (Asylum  and  Immigration)  Bill  are  compatible  with  the 
Convention  rights,  but  the  Government  nevertheless  wishes  the  House  to  proceed  with  the 
Bill’59.  The  Commission  notes  these  developments  with  concern  and  expects  the  United 
Kingdom  to  respect  its  international  obligations,  in  particular  those  under  the  European 
Convention  on  Human  Rights,  which  forms  the  basis  for  cooperation  in  the  field  of  law 
enforcement and judicial cooperation in criminal matters under the TCA.  

In  March  2023,  the  government  of  the  United  Kingdom  tabled  a  new  version  of  the  Data 
Protection and Digital Information (No 2) Bill60. The objective of the Bill is to reform the 
data  protection  framework  in  the  United  Kingdom,  on  which  the  Commission  based  its 
decisions  on  the  adequacy  of  the  level  of  protection  for  personal  data.  The  Bill  intends  to 
make  changes  in  several  areas,  notably  on  the  legal  grounds  for  the  processing  of  personal 
data,  the  exercise  of  data  subject  rights,  the  rules  for  the  transfer  of  personal  data  to  other 
countries  and  the  set-up  and  functioning  of  the  independent  data  protection  supervisory 
authority. The Commission will continue to monitor the legislative process. 

The government of the United Kingdom introduced the Digital Markets, Competition and 
Consumers Bill61 in April 2023. The Bill provides for the regulation of competition in digital 
markets  and  the  designation  of  undertakings  with  a  strategic  market  status.  It  also  seeks  to 
reform  certain  aspects  of  competition  law  and  creates  two  separate  regimes  for  the  civil 
enforcement  of  consumer  law:  a  court-based  regime  and  a  direct  enforcement  regime 
administered by the United Kingdom’s Competition and Markets Authority. The Commission 
will continue to monitor the legislative process. 

Finally, the Bill of Rights Bill62 introduced in 2022 was withdrawn on 27 June 2023.  

5.2. 

Level playing field for open and fair competition and sustainable 
development  

The  Commission  carefully  monitors  regulatory  developments  in  this  area  and  requests 
clarifications from the United Kingdom where necessary.  

5.2.1.  Subsidy control and taxation 

Three  types  of  block-exempted  subsidies,  the  ‘Streamlined  Routes’63,  were  adopted  in 
January 2023. The three Streamlined Routes cover: (i) research, development and innovation; 
(ii) energy usage; and (iii) local growth and would exempt public authorities from assessing 
subsidy measures against the subsidy principles.  

59 See explanatory notes to the Safety of Rwanda (Asylum and Immigration) Bill: 
https://publications.parliament.uk/pa/bills/cbill/58-04/0038/230038.pdf.  
60 Data Protection and Digital Information Bill: https://bills.parliament.uk/bills/3430.  
61 Digital Markets, Competition and Consumers Bill: https://bills.parliament.uk/bills/3453.  
62  Bill of Rights Bill: https://bills.parliament.uk/bills/3227.  
63 Subsidy Control Act 2022: Streamlined Routes: https://www.gov.uk/government/publications/subsidy-
control-act-2022-streamlined-routes.  

18 

 
 
 
The Commission continued to monitor the implementation of previously adopted legislation 
that  entered  into  force  in  2023,  such  as  the  new  subsidy  control  regime  under  the  Subsidy 
Control Act 202264. It also requested clarifications from the United Kingdom on a package of 
measures  on  electricity  costs  for  energy-intensive  industries65,  as  well  as  an  update  on 
investment zones and freeports. 

5.2.2.  Labour and social standards, environment and climate 

In  the  area  of  labour  and  social  standards,  the  Commission  followed  the  developments 
surrounding the adoption and implementation of the Strikes (Minimum Service Levels) Act 
202366, which empowers the government of the United Kingdom to set out minimum service 
requirements during strikes in certain public service sectors. 

Following  a  submission67  by  the  Trades  Union  Congress  to  the  International  Labour 
Organization  (ILO)  about  alleged  attacks  on  workers’  right  to  strike,  on  17  July  2023  the 
ILO’s  Committee  on  the  Application  of  Standards  urged  the  government  of  the  United 
Kingdom to facilitate the dialogue with the social partners and to ensure that any existing or 
new legislation complies with international rules on freedom of association68. It remains to be 
seen how these recommendations will be addressed.  

Furthermore, on 13 July 2023, the High Court of the United Kingdom quashed the statutory 
instrument that allows employment agencies to knowingly provide temporary workers to an 
employer to perform the duties of workers taking part in a strike69.   

In the area of environment and climate, the United Kingdom passed secondary legislation70 
reducing  the  number  of  allowances  under  its  Emission  Trading  Scheme  (ETS)  to  be 
auctioned from 2024 onwards to strengthen its decarbonisation objectives. The Commission 
monitored  these  changes  alongside  other  developments,  such  as  the  fall  in  the  United 
Kingdom’s ETS prices, which created a gap with those of the EU ETS, and the adoption by 
the Climate Change  Committee  of the 2023 Report to  Parliament71 on progress  in  reducing 
emissions  and  the  assessment  of  the  announcements  and  developments  on  Net-Zero  in  the 
United Kingdom72. 

64 Subsidy Control Act 2022: https://www.legislation.gov.uk/ukpga/2022/23/enacted.  
65 British Industry Supercharger: Capacity Market consultation and EIIs government response: 
https://www.gov.uk/government/consultations/british-industry-supercharger-capacity-market-consultation-and-
eiis-government-response.  
66 Strikes (Minimum Service Levels) Act 2023: https://www.legislation.gov.uk/ukpga/2023/39/enacted.  
67TUC submission to ILO committee of experts: https://www.tuc.org.uk/sites/default/files/2022-
09/ILOsubmission2022.pdf.  
68 International Labour Organization Record of Proceedings: https://www.ilo.org/wcmsp5/groups/public/---
ed_norm/---relconf/documents/meetingdocument/wcms_888016.pdf.  
69  Case No: CO/3337/2022 CO/3346/2022 CO/3532/2022: https://www.judiciary.uk/wp-
content/uploads/2023/07/ASLEF-v-Secretary-of-State-for-Business-and-Trade-judgment-130723.pdf. 
70  The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2023:  
https://www.legislation.gov.uk/uksi/2023/994/contents/made.  
71 Progress in reducing emissions 2023 Report to Parliament: https://www.theccc.org.uk/wp-
content/uploads/2023/06/Progress-in-reducing-UK-emissions-2023-Report-to-Parliament-1.pdf. 
72  CCC assessment of recent announcements and developments on Net Zero:   
https://www.theccc.org.uk/2023/10/12/ccc-assessment-of-recent-announcements-and-developments-on-net-
zero/.  

19 

 
 
 
The  Commission  also  monitored  the  development  of  a  chemicals  policy  in  the  United 
Kingdom (UK REACH) and its divergence from EU policy (EU REACH). 

6. Conclusions 

The  TCA  is  not,  and  cannot  be,  a  substitute  for  EU  membership.  Being  outside  the  EU’s 
single  market  and  its  policies  has  inevitable  implications  for  trade,  market  access  and  the 
extent of cooperation. 

However,  as  previously  highlighted73,  the  TCA  is  a  very  good  agreement  for  the  EU.  It 
strikes a good balance between rights  and obligations for both  parties and provides for  far-
reaching market access and extensive cooperation. 

The Commission remains fully committed to taking forward the implementation of the TCA 
and  to  working  with  the  United  Kingdom  in  a  cooperative  and  constructive  manner  to  this 
end.  

73 Annual report on the implementation and application of the Trade and Cooperation Agreement between the 
European Union and the United Kingdom of Great Britain and Northern Ireland:   
https://commission.europa.eu/publications/annual-report-implementation-and-application-trade-and-
cooperation-agreement-between-european-union_en. 

20 

 
 
 
 
 
Annex 1: Meetings in 2023 of the joint bodies and other structures 
established by the TCA  

Date 
7-9 March 
9 March 
24 March 
18-20 April 
1 June 
19 June  
21 June 
27 June 
28 June 
3-4 July 
26 July 
22 September 

27 September 

4 October 

9 October 
11 October 
13 October 
18 October 

19 October 

Joint body/structure 

Fisheries (Working Group): 4th meeting 
EU Domestic Advisory Group: 6th meeting 
Partnership Council: 2nd meeting 
Fisheries (Working Group): 5th meeting 
Air Transport (Specialised Committee): 3rd meeting 
Law Enforcement and Judicial Cooperation (Specialised Committee): 3rd meeting 
EU Domestic Advisory Group: 7th meeting 
Fisheries (Specialised Committee): 6th meeting 
Social Security Coordination (Specialised Committee): 3rd meeting 
Parliamentary Partnership Assembly: 3rd meeting 
Fisheries (Working Group): 6th meeting 
Fisheries (Specialised Committee): 7th meeting 
Customs Cooperation and Rules of Origin (Trade Specialised Committee): 3rd 
meeting 
Level Playing Field for Open and Fair Competition and Sustainable Development 
(Trade Specialised Committee): 3rd meeting 
Services, Investment and Digital Trade (Trade Specialised Committee): 3rd meeting 
Sanitary and Phytosanitary Measures (Trade Specialised Committee): 3rd meeting 
EU Domestic Advisory Group: 8th meeting 
Technical Barriers to Trade (Trade Specialised Committee): 3rd meeting 
Administrative Cooperation in VAT and Recovery of Taxes and Duties (Trade 
Specialised Committee): 3rd meeting 
Intellectual Property (Trade Specialised Committee): 3rd meeting 
Regulatory Cooperation (Trade Specialised Committee): 3rd meeting 
Civil Society Forum: 2nd meeting 
Goods (Trade Specialised Committee): 3rd meeting 
Energy (Specialised Committee): 4th meeting 
Public Procurement (Trade Specialised Committee): 3rd meeting 

23 October 
6 November 
7 November 
8 November 
9 November 
16 November 
23 November  Road Transport (Specialised Committee): 3rd meeting 
30 November  Aviation Safety (Specialised Committee): 3rd meeting 
4-5 December  Parliamentary Partnership Assembly: 4th meeting 
4 December 
7 December 

Participation in Union Programmes (Specialised Committee): 3rd meeting 
Trade Partnership Committee: 3rd meeting 

21 

 
 
 
 
 
 
Annex 2: Overview of the actions for implementation agreed by the 
Partnership Council on 24 March 2023 
Topic 
Association of the United 
Kingdom to Union 
programmes  

State of play 
DELIVERED: Association to Horizon Europe and 
Copernicus as of 1 January 2024. The Protocols to the TCA 
were adopted by the Specialised Committee on Participation 
on Union Programmes on 4 December 2023. 
Additional technical input received from Transmission System 
Operators on 10th July. The file is under assessment, with 
further discussions with the United Kingdom on a regular 
basis. 

New electricity trading 
arrangements and 
cooperation of electricity 
transmission system 
operators 
MoU on regulatory 
cooperation on financial 
services  
MoU on intellectual 
property cooperation 
between the European 
Union Intellectual Property 
Office (EUIPO) and the 
United Kingdom’s 
Intellectual Property Office 
(UKIPO) 
United Kingdom: Retained 
EU Law Act 

United Kingdom: Bill of 
Rights Bill  
Model rules of procedure 
for working groups set up 
under the TCA 

Dialogue on 
counterterrorism 
Dialogue on cyber issues 

EU to provide information 
to the United Kingdom on 
its measures applicable to 
imports of live bivalve 
molluscs and seed potatoes 
Activating the VAT 
protocol under the TCA 

DELIVERED: The MoU was signed on 27 June 2023 and is 
operational.  

Discussions between the EUIPO and the UKIPO are 
advancing. 

DELIVERED: A technical meeting between the Commission 
departments and the United Kingdom took place on 2 July 
2023. The United Kingdom provided explanations about the 
content of the Act.  
OBSOLETE: The United Kingdom withdrew the bill. 

DELIVERED: The rules have been agreed with the United 
Kingdom at technical level. On 28 September, the Council 
adopted its Decision, under Article 218(9) of the Treaty on the 
Functioning of the EU, on the position to be taken by the EU 
on this issue.  This enables the working groups on organic 
products, motor vehicles and parts, medicinal products and 
social security coordination to become operational. 
DELIVERED: The dialogue took place on 2 February 2024. 

DELIVERED: The dialogue took place on 14 December 
2023. 
DELIVERED: Information provided on 3 April 2023.  

DELIVERED: The relevant four decisions necessary for the 
activation of the VAT Protocol were adopted by the Trade 
Specialised Committee on VAT administrative cooperation 
and the recovery of taxes and duties, on 19 October 2023.  

22 

 
 
Annex 3: Decisions and recommendations adopted by the Partnership 
Council or Committees established by the Trade and Cooperation 
Agreement 

Recommendation  No  1/2023  of  the  Specialised  Committee  on  Energy  established  by 
Article  8(1)(1)  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, of 7 February 2023 to each Party concerning 
their requests to transmission system operators for electricity in view of preparing technical 
procedures for the efficient use of electricity interconnectors74. 

Decision  No  1/2023  of  the  Specialised  Committee  established  by  Article  8(1)(r)  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, of 19 June 2023 establishing a standard form for requests for mutual 
assistance75. 

Decision  No  1/2023  of  the  Specialised  Committee  on  Social  Security  Coordination 
established  by  Article  8(1)(p)  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, of 10 March 2023 
as  regards  the  use  of  the  Electronic  Exchange  of  Social  Security  Information  for  the 
transmission of data between institutions or liaison bodies76. 

Decision  No  2/2023  of  the  Specialised  Committee  on  Social  Security  Coordination 
established  by  Article  8(1)(p)  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, of 28 June 2023 as 
regards  the  designation  of  the  financial  institution  to  serve  as  reference  to  determine  the 
interest rate for late payments and the exchange rate for currency conversions, as well as the 
date to be taken into consideration for determining the rates of currency conversion77. 

Decision  No  1/2023  of  the  Specialised  Committee  on  Fisheries  established  by  Article 
8(1)(q)  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, of 24 July 2023 as regards the mechanism for 
voluntary in-year transfers of fishing opportunities78. 

Recommendation  No  1/2023  of  the  Specialised  Committee  on  Fisheries  established  by 
Article  8(1)(q)  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 

74 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:22023D0425  
75 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:22023D1621  
76 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:22023D0698  
77 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:22023D1460  
78 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2023.198.01.0039.01.ENG  

23 

 
 
 
Britain  and  Northern  Ireland,  of  the  other  part,  of  24  July  2023  as  regards  guidelines  for 
notifications under Article 496(3) of the Agreement79. 

Recommendation  No  2/2023  of  the  Specialised  Committee  on  Fisheries  established  by 
Article  8(1)(q)  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, of 24 July 2023 as regards the alignment of 
management areas for Lemon Sole, Witch, Turbot and Brill80. 

Recommendation  No  3/2023  of  the  Specialised  Committee  on  Fisheries  established  by 
Article  8(1)(q)  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, of 1 December 2023, as regards the alignment 
of management areas for Plaice and Whiting81. 

Decision No 1/2023 of the Trade Specialised Committee on Administrative Cooperation 
in  VAT  and  Recovery  of  Taxes  and  Duties  established  by  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, 
of 19 October 2023 on the procedure for the conclusion of a service level agreement82. 

Decision No 2/2023 of the Trade Specialised Committee on Administrative Cooperation 
in  VAT  and  Recovery  of  Taxes  and  Duties  established  by  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, 
of 19 October 2023  on the amount and modalities of the financial contribution to be made by 
the United Kingdom of Great Britain and Northern Ireland to the general budget of the Union 
in respect of the cost generated by its participation in the European Information Systems83. 

Decision No 3/2023 of the Trade Specialised Committee on Administrative Cooperation 
in  VAT  and  Recovery  of  Taxes  and  Duties  established  by  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, 
of  19  October  2023    laying  down  implementing  rules  for  provisions  relating  to  recovery 
assistance of the Protocol on administrative cooperation and combating fraud in the field of 
value added tax and on mutual assistance for recovery of claims84. 

Decision No 4/2023 of the Trade Specialised Committee on Administrative Cooperation 
in  VAT  and  Recovery  of  Taxes  and  Duties  established  by  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, 
of 19 October 2023 on standard forms for the communication of information and statistical 
data,  the  transmission  of  information  via  the  Common  Communication  Network  and  the 

79 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2023.198.01.0041.01.ENG  
80 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2023.198.01.0044.01.ENG  
81 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L_202400626  
82 https://eur-lex.europa.eu/eli/dec/2023/2472/oj  
83 https://eur-lex.europa.eu/eli/dec/2023/2473  
84 https://eur-lex.europa.eu/eli/dec/2023/2474/oj  

24 

 
 
 
practical  arrangements  for  the  organisation  of  contacts  between  central  liaison  offices  and 
liaison departments85. 

Decision No 1/2023 of the Specialised Committee on Road Transport established by 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, of 23 November 2023 on the adaptation of technical specifications 
of the smart tachograph 286. 

Decision No 1/2023 of the Specialised Committee on Participation in Union Programmes 
established by Article 8(1)(s) 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, of adopting Protocols I and 
II and amending Annex 47 to the Trade and Cooperation Agreement87. 

Decision No 1/2023 of the Partnership Council established by 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 
of  21  December  2023  as  regards  the  transitional  product-specific  rules  for  electric 
accumulators and electrified vehicles88. 

85 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202302475  
86  https://eur-lex.europa.eu/eli/dec/2024/293/oj  
87 https://eur-lex.europa.eu/eli/dec/2023/2731  
88 EUR-Lex - 22023D2891 - EN - EUR-Lex (europa.eu)  

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