United Kingdom withdrawal from European Union and end of transition period on 31 December 2020
As of 1 January 2021, the United Kingdom (UK) has completed its withdrawal process from the European Union (EU). The EU and the UK now form two separate markets; two distinct regulatory and legal spaces. The EU-UK Trade and Cooperation Agreement started to apply provisionally on 1 January 2021.
- Will the EU’s trade relations with third countries, including with Armenia, change?
The EU will honour all its existing international commitments.
The nature of the relations between the EU and the UK in the future will not affect existing commercial relationship third countries have with the EU. Only their geographical scope will be affected by the UK’s withdrawal from the EU.
- What will be the impact on trade in goods between a third country and the UK?
The trade in goods between a third country and the UK will no longer be governed by the commitments taken at the level of the European Union, via a bilateral agreement or in a multilateral context, but will depend on the type of relationship and arrangements that third country has or will agree with the UK.
- Will Northern Ireland remain in the EU's Single Market for goods?
Northern Ireland will remain aligned to a limited set of rules related to the EU's Single Market in order to avoid a hard border: legislation on goods, sanitary rules for veterinary controls (“SPS rules”), rules on agricultural production/marketing, VAT and excise in respect of goods, and state aid rules.
- What are the implications for air transport agreements between the EU and third countries?
As of 1 January 2021, the UK will no longer be covered by any air services agreements to which the European Union is a party.
The EU will of course remain party to all the air services agreements to which it is currently a party. Rights and obligations of third countries, of the EU and its Member States will remain the same in relation to these agreements.
Preferential origin issues
- UK content (material or processing operations) is non-originating under the EU preferential trade arrangements, including GSP+, for the determination of the preferential origin of goods incorporating that content[1].
- Proofs of origin issued/made out in the EU or in the UK before the end of the transition period in relation to goods with a UK content are to be considered as valid proofs of origin for import purposes, provided that the export of the consignment has been effected or ensured before the end of the transition period. The validity of the proof of origin is limited to the period established under the relevant EU trade preferential arrangement, including GSP+.
- Proofs of origin issued or made out in EU preferential partner countries before the end of the transition period in relation to goods with UK content are to be considered as valid proofs of origin for import purposes in the EU, provided that the export of the consignment has been effected or ensured before the end of the transition period. The validity of the proof of origin is limited to the period established under the relevant EU trade preferential arrangement, including GSP+.
- Proofs of origin issued/made out in the UK after the transition period are not valid. UK stamps for EUR1 and EUR-MED movement certificates cannot be used.
- Verifications in relation to exports, which were effected before the end of the transition period, will assess the originating status of the goods, considering the moment of exportation as the relevant moment for the assessment.
Product-by-product information is available on the European Commission’s Access2Markets[2] webpage on tariffs and taxes, rules of origin, product requirements, customs procedures, trade barriers and statistics for all EU countries.
[1] Preferential countries in this note include all countries with whom the EU has concluded preferential agreements or with respect to which it applies unilateral preferential arrangements (such as the Generalised System of Preferences or the arrangements for Overseas Countries and Territories).
[2] https://trade.ec.europa.eu/access-to-markets/en/content/