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The UK's EU Withdrawal Agreement

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The UK's EU Withdrawal Agreement BRIEFING PAPER Number 08453, 1 December 2018 The UK's EU Withdrawal By Library Subject Specialists Agreement 2 The UK's EU Withdrawal Agreement Contents: 1. Background 2. Part One: Common provisions 3. Part Two: Citizens’ rights 4. Part Three: Separation provisions 5. Part Four: Transition 6. Part Five: financial provisions 7. Part Six: Institutional and Final Provisions 8. Protocol on Ireland/Northern Ireland 9. Protocols on UK Sovereign Base Areas in Cyprus and Gibraltar 10. What now in the UK and EU? 11. Constitutional implications of the texts in the UK Appendix: parts of the Protocol on Ireland/Northern Ireland that come into force on exit day www.parliament.uk/commons-library | intranet.parliament.uk/commons-library | [email protected] | @commonslibrary 3 Commons Library Briefing, 1 December 2018 Contents Summary 7 1. Background 15 2. Part One: Common provisions 16 3. Part Two: Citizens’ rights 18 3.1 Continuous residence 18 3.2 Free movement for UK nationals after Brexit 18 3.3 Comprehensive sickness insurance 19 3.4 Certain categories of beneficiaries of EU law 19 3.5 Coordination of social security 20 3.6 Jurisdiction of the Court of Justice of the European Union and oversight 22 3.7 Immigration White Paper and Immigration Bill 22 3.8 Northern Ireland ‘backstop’ and citizens’ rights 23 4. Part Three: Separation provisions 24 4.1 Goods placed on the market 24 4.3 Ongoing customs procedures 27 4.4 VAT and excise duty 27 4.5 Intellectual property 29 4.6 Geographical indications 31 4.7 Ongoing police and judicial cooperation in criminal matters 32 4.8 Ongoing judicial cooperation in civil and commercial matters 34 4.9 Data and information 36 4.10 Ongoing public procurement 38 4.11 State aid 39 4.12 Euratom 40 4.13 Agriculture 41 4.14 Specific arrangements relating to fishing opportunities 44 4.15 Immunities and privileges 44 5. Part Four: Transition 47 5.2 Application of EU acquis during transition and exceptions 48 5.3 Exceptions to UK being treated as a Member State in EU law 49 5.4 Institutional Arrangements 49 5.5 EU Court jurisdiction 51 5.6 Fisheries 51 5.7 Justice and Home Affairs 51 5.8 International Agreements and the EU’s external actions 52 5.9 Common Foreign and Security Policy 53 5.10 Duration of the transition period 54 5.11 Extension of the transition period 55 5.12 Domestic Legislation required to implement the transition period 56 5.13 Final Provisions 57 5.14 Entry into Force 57 6. Part Five: financial provisions 59 6.1 What was agreed in the Joint Report? 59 6.2 Potential cost 60 6.3 The Withdrawal Agreement 62 UK participation in Union annual budgets to 2020 62 UK participation in EU programmes in 2019 and 2020 62 4 The UK's EU Withdrawal Agreement EU budget outstanding commitments (reste à liquider) 63 Liabilities 64 Contingent liabilities 64 European Investment Bank 65 European Central Bank 65 European Coal and Steel Community 66 European Investment Fund 66 European Development Fund 66 Facility for Refugees in Turkey and EU Trust funds 67 Defence related agencies 67 6.4 Other key aspects of the settlement 67 The UK’s share of outstanding commitments and liabilities 67 7. Part Six: Institutional and Final Provisions 69 7.1 Administering the Agreement: the Joint Committee 69 7.2 The role of the CJEU and domestic courts 70 7.3 Dispute Settlement 72 7.4 Disputes about EU law 76 8. Protocol on Ireland/Northern Ireland 78 The Good Friday Agreement 78 How Brexit might affect the Good Friday Agreement 79 The Brexit negotiations 80 Reaction to the backstop 81 8.2 The text of the Protocol 82 Preamble, entering and exiting the Protocol 82 8.3 Individual Rights and the Common Travel Area 89 Common Travel Area 92 8.4 The ‘backstop’: trade, Single Market provisions and the level playing field 94 Single customs territory, movement of goods 94 What does the Protocol not cover? 100 8.5 The UK internal market and technical regulations 106 Protection of the UK internal market 106 8.6 Tax, agriculture, environment 111 8.7 State Aid 114 8.8 North-South co-operation 117 8.9 Supervision, enforcement and common provisions 118 8.10 Governance 121 9. Protocols on UK Sovereign Base Areas in Cyprus and Gibraltar 124 9.1 Protocol relating to Sovereign Base Areas in Cyprus 124 9.2 Protocol on Gibraltar 129 9.3 The Isle of Man and the Channel Islands 137 10. What now in the UK and EU? 139 10.1 Overview of Parliamentary approval in the UK 139 10.3 The EU (Withdrawal Agreement) Bill 146 10.4 Parliament’s role in a ‘no deal’ scenario 147 10.5 A second UK referendum? 148 10.6 Approval in the EU 151 11. Constitutional implications of the texts in the UK 154 11.1 Extension of the transition period 154 11.2 The treaty/treaties on the future relationship 156 11.3 Constitutional status of the Withdrawal Agreement 158 Appendix: parts of the Protocol on Ireland/Northern Ireland that come into force on exit day 161 5 Commons Library Briefing, 1 December 2018 6 The UK's EU Withdrawal Agreement Contributing Authors Elena Ares, Lorna Booth, Louise Butcher, Sarah Coe, Graeme Cowie, John Curtis, Joanna Dawson, Tim Edmonds, Stefano Fella, Daniel Harari, Suzanna Hinson, Georgina Hutton, Neil Johnston, Ilze Jozepa, Matthew Keep, Steven Kennedy, Sylvia de Mars, Vaughne Miller, Claire Mills, Federico Mor, Gavin Phillipson, Ed Potton, Sara Priestley, Dominic Webb, Hannah Wilkins, John Woodhouse Cover page image copyright Image brexit-3575383 by Tumisi – Pixabay. Licensed by CC0 Creative Commons 7 Commons Library Briefing, 1 December 2018 Summary On 13 November 2018 the EU decided that “decisive progress” had been made in the Brexit negotiations, and on 14 November the European Commission and UK Government published a draft withdrawal agreement, together with three protocols (on the border between Ireland and Northern Ireland, the UK’s Sovereign Base Areas in Cyprus, and Gibraltar) and nine annexes. The negotiated text of the Withdrawal Agreement, together with the Political Declaration on the framework for future EU-UK relations, was endorsed by EU leaders at a specially convened European Council meeting on 25 November 2018. Structure of the negotiated Withdrawal Agreement Part 1 Common Provisions (p 6) Part 2 Citizens’ Rights (p 16) Part 3 Separation Provisions (p 69) Part 4 Transition (p 196) Part 5 Financial Provisions (p 210) Part 6 institutional and Final Provisions (p 268). Protocol on Ireland/Northern Ireland (p 302) and Annexes to Ireland/N.I. protocol (p 331) Protocol on Sovereign Base Areas of UK in Cyprus (p 476) Protocol on Gibraltar (p 496) Annex I on Social Security Coordination (p 505) Annex II on Provisions of EU law referred to in Article 41(4) (animal health) (p 529) Annex III on Time limits for situations or customs procedures referred to in Article 49(1) (p 531) Annex IV on List of networks, information systems and databases referred to in Articles 50, 53, 99 and 100 (p 533) Annex V on Euratom (p 547) Annex VI on List of administrative cooperation procedures referred to in Article 98 (p 552) Annex VII on List of Acts/Provisions referred to in Article 128(6) (p 555) Annex VIII on Rules of Procedure of the Joint Committee and Specialised Committees (p 560) Annex IX, Rules of Procedure for dispute settlement (p 569) Part one: Common Provisions Part 1 of the Withdrawal Agreement contains so-called ‘Common Provisions’. They set out its territorial scope, key definitions, and how the Withdrawal Agreement (and particularly, its EU law content) is to be given effect in the UK. An important difference from the March draft Withdrawal Agreement is that Article 4 makes clear that the entire Withdrawal Agreement (rather than just Part Two on Citizens’ Rights) is intended to be directly effective in the UK where its provisions are clear, precise and unconditional. Part two: Citizens’ Rights The citizens’ rights provisions were agreed by the UK and the EU in the March draft withdrawal agreement. There are no substantive changes or additions, except in provisions on the rights of nationals of Iceland, Liechtenstein, Norway and Switzerland. 8 The UK's EU Withdrawal Agreement Free movement will continue until the end of the transition (or implementation) period and EU and UK nationals will be able to move to the UK or Member States as is currently permitted by EU law. EU citizens living in their host state before the end of transition will have permanent residence rights under the withdrawal agreement, subject to certain requirements. The UK and the EU27 have discretion under the agreement to require EU or UK nationals to apply for a new residency status. The UK has chosen to implement a scheme which requires EU citizens to apply for a new residency status known as settled or pre-settled status. It is still unclear whether each of the EU27 will exercise their discretion under the withdrawal agreement to require UK residents to apply for a new residency status. The Government is expected to publish an Immigration White Paper in the coming weeks in preparation for next year’s Immigration Bill. Much about the future relationship between the UK and EU in relation to immigration is yet unknown. Part Three: Separation Provisions Part Three of the WA is intended to create an orderly exit from the EU. Ongoing processes and arrangements will be allowed to come to an end under current rules following the end of transition.
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