   
  
WT/REG447/1  
 
19 January  2023 
(23-0370) Page: 1/77 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
TRADE AND COOPERATION AGREEMENT BETWEEN THE EUROPEAN UNION (EU) AND THE 
UNITED  KINGDOM (UK), GOODS AND SERVICES  
Report by the Secretariat  
This report, prepared for the consideration of the  Trade and Cooperation Agreement 
between the European Union (EU) and the United Kingdom (UK) , has been drawn up by 
the WTO Secretariat  on its own responsibility and in full consultation with the Parties. 
The factual presentation reproduces as closely as possible the terminology used in the 
Agreement and in the comments provided and does not imply official endorsement or 
acceptance by the Secretariat of such terminology. The report has been drawn up in 
accordance with the rules and procedures contained in the Decision for a Transparency 
Mechanism for Regional Trade Agreements (WT/L/671) and thus does not imply any 
value judgement by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Alberto Osnag o 
(tel: +41 22 739 6969), Alena Fiorentino  (tel: +41 22 739 64 05), or Jean -Daniel Rey 
(tel: +41 22 739 52 64) . Any statistical questions arising from this report may be 
addressed to Rowena Cabos  (tel: +41 22 739 51 85). 
 
 
  WT/REG447/1   
 
- 2 - 
 
  Table of Contents  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1   Merchandise trade  ................................ ................................ ................................ ..... 5 
1.2   Trade in services and investment  ................................ ................................ .................  7 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ....................  11 
2.1   Background information  ................................ ................................ ............................  11 
2.2   Structure of the Agreement  ................................ ................................ ........................  12 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  16 
3.1   Import duties and charges, and quantitative restrict ions ................................ ................  16 
3.1.1   General provisions  ................................ ................................ ................................ . 16 
3.1.2   Liberalization of trade and tariff lines  ................................ ................................ ........  17 
3.1.3   Liberalization maintained under the Agreement  ................................ ..........................  17 
3.1.3.1    European Union  ................................ ................................ ................................ .. 17 
3.1.3.2    United Kingdom  ................................ ................................ ................................ .. 18 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ... 18 
3.2   Rules of origin  ................................ ................................ ................................ ..........  18 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................  20 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ....... 20 
3.4.1   Standards  ................................ ................................ ................................ .............  20 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ .... 20 
3.4.1.2    Technical barriers to trade  ................................ ................................ ....................  21 
3.4.2   Safeguard mechanisms  ................................ ................................ ...........................  23 
3.4.2.1    Global safeguards  ................................ ................................ ...............................  23 
3.4.2.2    Bilateral safeguards  ................................ ................................ .............................  23 
3.4.2.3    Special safeguards  ................................ ................................ ..............................  23 
3.4.2.4    Balance of payments safeguards  ................................ ................................ ...........  23 
3.4.3   Anti-dumping and  countervailing measures  ................................ ...............................  24 
3.4.4   Subsidies and State aid  ................................ ................................ ..........................  24 
3.4.5   Customs -related procedures  ................................ ................................ ....................  26 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ . 27 
3.5.1   Fisheries  ................................ ................................ ................................ ...............  27 
3.5.2   Motor vehicles  ................................ ................................ ................................ ....... 28 
3.5.3   Medicinal products  ................................ ................................ ................................ . 28 
3.5.4   Chemicals  ................................ ................................ ................................ .............  29 
3.5.5   Organic products  ................................ ................................ ................................ ... 29 
3.5.6   Wine ................................ ................................ ................................ ....................  30 
4   PROVISIONS ON TRADE IN SERVICES AN D INVESTMENT  ................................ .........  30 
4.1   Scope and definition  ................................ ................................ ................................ . 30 
4.2   Denial of benefits  ................................ ................................ ................................ ..... 32 
4.3   General provisions on trade in services and investment  ................................ ..................  32 WT/REG447/1  
 
- 3 - 
 
  4.3.1   Market access  ................................ ................................ ................................ ....... 32 
4.3.2   National treatment and MFN  ................................ ................................ ....................  32 
4.3.3   Commercial (local) presence ................................ ................................ ....................  33 
4.3.4   Performance requirements  ................................ ................................ ......................  33 
4.3.5   Senior managers and boards of directors  ................................ ................................ ... 34 
4.3.6   Movement of natural persons  ................................ ................................ ..................  34 
4.4   Liberalization commitments  ................................ ................................ ........................  35 
4.4.1   European Union  ................................ ................................ ................................ ..... 36 
4.4.1. 1   MFN and horizontal commitments  ................................ ................................ ..........  36 
4.4.1.2    Sector specific commitments  ................................ ................................ ................  37 
4.4.2   United Kingdom  ................................ ................................ ................................ ..... 42 
4.4.2.1    MFN and horizontal commitments  ................................ ................................ ..........  42 
4.4.2.2    Sector specific commitments  ................................ ................................ ................  43 
4.5   Regulatory provisions  ................................ ................................ ................................  49 
4.5.1   Domestic regulation  ................................ ................................ ...............................  50 
4.5.2   Recognition  ................................ ................................ ................................ ...........  50 
4.5.3   Subsidies  ................................ ................................ ................................ ..............  50 
4.5.4   Safeguards  ................................ ................................ ................................ ...........  51 
4.6   Sector specific provisions on trade in services  ................................ ...............................  52 
4.6.1   Legal services  ................................ ................................ ................................ ....... 52 
4.6.2   Computer services  ................................ ................................ ................................ . 52 
4.6.3   Delivery services  ................................ ................................ ................................ ... 53 
4.6.4   Telecommunication Services  ................................ ................................ ....................  53 
4.6.5   Financial services  ................................ ................................ ................................ ... 54 
4.6.6   Maritime transport services  ................................ ................................ .....................  55 
4.6.7   Air transport  ................................ ................................ ................................ .........  56 
4.6.8   Road transport  ................................ ................................ ................................ ...... 57 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  58 
5.1   Transparency  ................................ ................................ ................................ ...........  58 
5.2   Current payments and capital movements  ................................ ................................ .... 59 
5.3   Exceptions  ................................ ................................ ................................ ...............  59 
5.3.1   General exceptions  ................................ ................................ ................................  59 
5.3.2   Security exceptions  ................................ ................................ ................................  59 
5.3.3   Taxation  ................................ ................................ ................................ ...............  59 
5.4   Relation with WTO Waivers  ................................ ................................ ........................  59 
5.5   Accession and withdrawal  ................................ ................................ ..........................  60 
5.6   Institutional framework  ................................ ................................ .............................  60 
5.7   Dispute settlement  ................................ ................................ ................................ ... 62 
5.8   Relationship with other agreements concluded by the Parties  ................................ ..........  63 
5.9   Government procurement  ................................ ................................ ..........................  66 WT/REG447/1   
 
- 4 - 
 
  5.10   Intellectual property rights  ................................ ................................ .......................  66 
5.11   Competition  ................................ ................................ ................................ ...........  67 
5.12   State Owned Enterprises (SOEs)  ................................ ................................ ...............  68 
5.13   Environment  ................................ ................................ ................................ ..........  69 
5.14   Labour  ................................ ................................ ................................ ..................  70 
5.15   Electronic commerce (digital trade)  ................................ ................................ ...........  70 
5.16   Small and medium -sized enterprises  ................................ ................................ .........  71 
5.17   Other  ................................ ................................ ................................ ....................  71 
5.17.1    Energy  ................................ ................................ ................................ ...............  71 
5.17.2    Good regulatory practices and regulatory cooperation  ................................ ...............  73 
ANNEX 1  ................................ ................................ ................................ ........................  74 
 
  WT/REG447/1  
 
- 5 - 
 
   
Key Facts  
 
Parties to the Agreement:  United Kingdom and the 
European Union  
 
Date of Signature:    30 December 2020  
 
Date of Entry into Force:  01 January 2021  
(provisionally applied)  
 
Date of Notification:   29 January 2021  
 
Full implementation:   01 January 2021  
 
 
1  TRADE ENVIRONMENT  
1.1.  The Trade and Cooperation Agreement between the European Union and the European Atomic 
Energy Community, of the one part, and the Un ited Kingdom of Great Britain and Northern Ireland, 
of the other part  (hereinafter the Agreement) is one of the EU's 4 5 and UK's 3 7 RTAs in force and 
notified to the WTO .1 It was signed following the withdrawal of the UK from the European Union and 
the European Atomic Energy Community .2  
1.1  Merchandise trade  
1.2.  In 202 1, the EU's merchandise exports amounted to EUR 5,602 billion and imports to EUR 
5,459 billion.3 The UK's merchandise exports amounted to EUR 396 billion and imports to EUR 587 
billion.4 In 202 1, the EU was the largest trader in the world while the UK was the sixth largest 
importer and tenth  largest exporter. For both Parties, manufactured products re presented the main 
commodity group traded ( 81.3% and 67.5% respectively of the EU's exports and imports, and 
71.6% and 66.1% respectively of the UK's exports and imports)  in 2020 .5 
1.3.  Chart 1.1 summarizes the trends in global and bilateral trade of the Parties for the period 2017 -
2021. The EU experienced a trade surplus throughout the period while the UK ran a global trade 
deficit. Regarding bilateral trade between the Par ties, the data show a positive balance in favour of 
the EU for the entire period.  
 
1 Situation on 3 October 2022.  
2 See WTO documents WT/L/1462 dated 29 January 2020 and WT/GC/206 dated 1 February 2020.  
3 Based on data from the WTO Statistics Database (2021)  viewed at https://stats.wto.org , EU exports in 
2021 represented 29.7% of global exports while its imports were 28.7% of global imports.  
4 Based on data from the WTO Statistics Database (2021)  https://stats.wto.org , UK exports in 2021 
represented 2.1% of global exports while its imports were 3.1% of global imports.  
5 The shares of trade by main commodity group come from the Parties' WTO Trade Profiles (2021).  WT/REG447/1   
 
- 6 - 
 
  Chart 1.1 European Union  (EU27)  - United Kingdom: Merchandise bilateral trade and with 
world (2017 -2021) 
 
Source:   Based on data provided by the UK authorities, Eurostat and UNSD, Comtrade database (UK 202 1 
trade).  
Note:  Exchange rates from GBP to USD: 0.78 (2017), 0.75 (2018), 0.78 ( 2019), 0.78 (2020); and from 
USD to Euro: 0.89 (2017), 0.85 (2018), 0.89 (2019), 0.88 (2020), 0.85 (2021).  
 
1.4.  Based on 2020 data, the EU was the UK's largest source of imports and destination for exports, 
while the UK was the EU's third largest source of imp orts and second  largest export destination.  
1.5.  The commodity structure of trade between the EU and the UK, as well as of their global trade 
in the period 2018 -2020, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections. 
The EU's largest global import categories were machinery, minerals, chemicals (respectively 25%, 
19% and 12%)  while the UK's largest global imports were machinery (21%), vehicles (12%) and 
precious stones (12%).  Machinery , chemicals and vehicles were the largest trade d products between 
the Parties with shares of 21%, 16% and 14% of EU's imports from the UK  and 20%,  14% and 20% 
of UK's imports from the EU.  The same products were also the EU and UK's largest global exports,  
respectively accounting for 25%, 17% and 15% of EU's exports and 21%, 1 4% and 1 5% of UK's 
exports.  
0100200300400500600
0100200300400500600700
2017 2018 2019 2020 2021B. United Kingdom
(Euro B illions)
Imports from EU (Right Axis)
Exports to EU (Right Axis)
Total Imports
Total Exports
0100200300400500600
05001,0001,5002,0002,500
2017 2018 2019 2020 2021A. European Union
(Euro Billions)
Imports from UK (Right Axis)
Exports to UK (Right Axis)
Total Imports
Total ExportsWT/REG447/1  
 
- 7 - 
 
  Chart 1.2 European Union - United Kingdom: Product composition of merchandise trade 
by HS Section, annual average (2018 -2020)  
 
Source:  Based on data provided by the UK authorities and Eurostat.  
Note:  Exchange rates from GBP to USD: 0.75 (2018), 0.78 (2019), 0.78 (2020); and from USD to Euro: 
0.85 (2018), 0.89 (2019), 0.88 (2020) . 
1.2  Trade in services and investment  
1.6.  In 20 21, the EU's services  exports amounted to EUR 1, 033 billion and imports to EUR 969 
billion  while the UK's services  exports amounted to EUR 357 billion and imports to EUR 239 billion. 
The EU's shares of global  commercial services exports and imports were 18.5% and 17.6% 
respectively, while the UK 's shares were 6.8% of world exports and 4.9% of world imports.6 The EU 
was the  largest exporter and importer of commercial services in the wor ld while the UK was the 
world's second  largest exporter and the sixth largest importer.  
1.7.  Chart 1.3 shows global and bilateral trade in commercial services for the EU (in 201 7-2021). 
Throughout the period, t he EU was a net exporter of services to the world with other business 
services  and transport accounting for the largest categories of traded services. The EU was also a 
net exporter of services to the UK  with other business services  and financial services  accounting for 
 
6 The Parties' s hares in global trade and ranks in world trade come from the Parties' WTO Trade Profiles 
(2020).  
21
16
141265521EU's imports from UK (%)
25
19
1186625EU's Global Imports (%)
21
15
141095422UK's Global Exports (%)
20
20
1486529UK's imports from EU (%)
21
12
12
9855522UK's Global Imports (%)25
17
15655521EU's Global Exports (%)
Total: Euro 184 billion Total: Euro 1,853 billion
Total: Euro 582 billionTotal: Euro 2,038 billion
Total:  Euro 395 billionTotal: Euro 286 billion
ChemicalsMineralsPrepared foods
Precious 
stonesTextilesPlastics
VehiclesMachineryBase metals
OtherOpticalWT/REG447/1   
 
- 8 - 
 
  the largest categories of imported services and other business services  and travel  accounting for the 
largest categories of exported services .  
Chart 1.3 European Union: Trade in commercial services with Extra -EU27  and the United 
Kingdom (2017 -2021) 
 
Source:  Based on data provided by the EU authorities  and Eurostat (2021).  
 
1.8.  Chart 1.4 shows global and bilateral trade in commercial services for the UK (in 201 7-2020). 
Throughout the period, t he UK was a net exporter of services to the world with other business 
services and financial services  accounting for the largest categories of exported services  and other 
business services and travel as the largest imported services . The UK was also a net importer of 
services from the EU with the same largest categories as services traded globally.  
02004006008001,0001,200
2017 2018 2019 2020 2021Imports
050100150200250
2017 2018 2019 2020 2021Exports European Union's trade in commercial 
services with Extra -EU27 (Euro billion)
European Union's trade in commercial services 
with the United Kingdom (Euro billion)02004006008001,0001,200
2017 2018 2019 2020 2021Exports 
050100150200250
2017 2018 2019 2020 2021Imports WT/REG447/1  
 
- 9 - 
 
  Chart 1.4 United Kingdom: Trade in commercial services with the world and the European 
Union (2017 -2020) 
 
Source:  Based on data provided by the UK authorities.  
Note:  Exchange rates from GBP to U SD: 0.78 (2017), 0.75 (2018), 0.78 (2019) , 0.78 (2020) ; and from 
USD to Euro: 0.89 (2017), 0.85 (2018), 0.89 (2019) , 0.88 (2020) . 
1.9.  Chart 1.5 and Chart 1.6 depict the Parties foreign direct investment stocks and flows with each 
other and the world during 201 7-2019. Both t he EU and the UK have been global net sour ces of FDI 
with outward stocks higher than inward stocks. The EU's global inward and outward flows have been 
similar and fluctuating over the period  while the UK's flows showed a decline . Bilateral stocks 
remained relatively stable with outward FDI stocks from the EU to the UK  consistently higher than 
the inward FDI  stocks while bilateral flows presented some volatility.  
0100200300400500600
2017 2018 2019 2020Imports
050100150200250
2017 2018 2019 2020Exports United Kingdom's trade in commercial 
services with the world (Euro billion)
United Kingdom's trade in commercial services 
with the European Union (Euro billion)0100200300400500600
2017 2018 2019 2020Exports 
050100150200250
2017 2018 2019 2020Imports WT/REG447/1   
 
- 10 - 
 
  Chart 1.5 European Union: FDI stock and flow wit h Extra -EU27 and the United Kingdom, 
2017 -2020 
 
Source:  Eurostat . 
05001,0001,5002,0002,500
2017 2018 2019 2020FDI stock with the United Kingdom
2017 -2020 
(Euro Billions) 
Inward
Outward
-100-50050100150
2017 2018 2019 2020FDI flow with the United Kingdom
2017 -2020
(Euro Billions) 
Inward
Outward01,0002,0003,0004,0005,0006,0007,0008,0009,00010,000
2017 2018 2019 2020FDI stock with Extra -EU27
2017 -2020 
(Euro Billions )
Inward
Outward
-300-200-1000100200300400
2017 2018 2019 2020FDI flow with Extra -EU27
2017 -2020
(Euro B illions ) 
Inward
OutwardWT/REG447/1  
 
- 11 - 
 
  Chart 1.6 United Kin gdom: FDI stock and flow with the EU and the world, 2017 -2020 
 
Note: 
- FDI presented on a directional basis.  
- exchange rates from GBP to USD: 0.78 (2017), 0.75 (2018), 0.78 (2019), 0.78 (2020); and from USD to  
Euro: 0.89 (2017), 0.85 (2018), 0.89 (2019), 0.88 (2020)  
- Data for UK investment with EU total includes some of the investment that is otherwise suppressed at the 
country level  
- FDI data for 2020 has been affected by changes in sampling methodology. Therefore, while this will mean 
2020 data are more representative of UK FDI  with overseas partners, some caution should be taken 
when comparing 2020 data to previous years. Methodology changes have  led to an increase in 
reported FDI, particularly inward FDI, in 2020. The effect of this methodology change will vary 
between partners, although it is not possible to quantify the specific impact for individual partners.  
Source:  Based on data provided by  the UK authorities.  
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information7 
2.1.  On 29 March 2017, the United Kingdom, following the outcome of a referendum held in the UK, 
notified its intention to withdraw from the EU and the European Atomic Energy Community 
("Euratom") in accordance with Article 50 of the TEU, which applies to Euratom by virtue of 
Article  106a of the Euratom Treaty.  
 
7 While t he Trade and Cooperation Agreement  between the EU and the UK, on one side,  and the 
Withdrawal Agreement  and the Protocol on Ireland/Northern Ireland , on the other side  are legally distinct 
treaties , and while it is only the Trade and Cooperation Agreement that is subject to the procedures set out in 
section C of the WTO’s Transparency Mechanism for RTAs , the Withdrawal Agreement  and the Protocol on 
Ireland/Northern Ireland  are mentioned in this factual presentation as they are contextual.   
02004006008001,0001,200
2017 2018 2019 2020FDI stock with the EU
2017 -2020 
(Euro Billions) 
Inward
Outward
-30-20-1001020304050
2017 2018 2019 2020FDI flow with the EU
2017 -2020
(Euro Billions) 
Inward
Outward05001,0001,5002,0002,500
2017 2018 2019 2020FDI stock with the world
2017 -2020 
(Euro Billions )
Inward
Outward
-100-50050100150
2017 2018 2019 2020FDI flow with the world
2017 -2020
(Euro B illions ) 
Inward
OutwardWT/REG447/1   
 
- 12 - 
 
  2.2.  On 17 October 2019, the Parties  agreed  a Withdrawal Agreement, which established the terms 
of the UK's orderly withdrawal from the EU, in accordance with Article 50 of the TEU. The Withdrawal 
Agreement entered into force on 1 February 2020.  It includes provisions on citizens ' rights, financial  
settlement, 'winding -down ' arrangements in a number of areas (e.g. goods placed on the market, 
customs procedures, intellectual property, etc.), a transition period (ended on 31 December 2020) 
and three Protocols on, respectively, Ireland/Northern Ireland , the UK Sovereign Base Areas in 
Cyprus, and Gibraltar.  
2.3.  The Trade and Cooperation Agreement  (hereinafter "the Agreement")  was signed on 30 
December 2020 and notified to the WTO on 29 January 2021 under Article XXIV:7(a) of GATT 1994 
and Article V:7(a) of t he GATS (see documents WT/REG447/N/1 - S/C/N/1041). The Agreement was 
provisionally applied from 1 January 2021 and  entered into force on 1 May 2021.8 
2.4.  The text of the Agreement, together with its annexes, is available on the Parties' official 
websites:  
European Union :  https://eur -lex.europa.eu/legal -
content/EN/TXT/?uri=CELEX%3A22021A0430%2801%29&qid=1625583778831   
United Kingdom: https://www.gov.uk/government/publications/ukeu -and-eaec-trade-and-
cooperation -agreement -ts-no82021  
2.2  Structure of the Agreement  
2.5.  The Agreement is composed of 7 Parts . Forty-nine Annexes, including the Parties' tariff 
elimination schedules and the lists of se rvices and investment commitments , as well as three 
Protocols  also form part of the Agreement.   
2.6.  Distinct from the Agreement is the Agreement on the Withdrawal of the United Kingdom of 
Great Britain and Northern Ireland from the European Union and the Europ ean Atomic Energy 
Community . It includes, inter alia , the Protocol on Ireland / Northern Ireland (hereinafter referred 
to as the "NI Protocol").  The NI protocol sets out arrangements  to address the unique circumstances 
on the island of Ireland, to maintain  the necessary conditions for continued North -South cooperation, 
to avoid a hard border on the island of Ireland and to protect the 1998 Good Friday or Belfast 
Agreement in all its dimensions. Article 185 of the Withdrawal Agreement provides that the NI 
Protocol applies as from the end of the transition period with the exception of a few provisions.9 
2.7.  Box 2.1below summarizes the structure of the Agreement  displaying the Titles of the most 
relevant parts for the purpose of this Factual Presentation .  
Box 2.1 Structure of the Agreement  
Parts/Headings /Titles  Titles  
Preamb le   
Part One: Common and institutional 
provisions  Title I: General provisions  
Title II: Principles of interpretation and definitions  
Title III: Institutional framework  
Part Two: Trade, transport, fisheries 
and other arrangements   
Heading One: Trade  Title I: Trade in goods  
Title II: Services and investment  
 
8 The Parties agreed to provisionally apply the Agreement from 1 January 2021 (Article 783). Provisional 
application shall cease on the earliest date between 28 February 2021 (or another date as decided by the 
Partnership Council) and the first day of th e month following that in which both Parties have notified each other 
that they have completed their respective internal requirements and procedures for establishing their consent 
to be bound.  
9 Some Articles of the NI Protocol apply as from the entry into  force of the Withdrawal Agreement , 
please refer to Article 185 of the Withdrawal Agreement for the specific list of provisions.  WT/REG447/1  
 
- 13 - 
 
  Parts/Headings /Titles  Titles  
Title III: Digital trade  
Title IV: Capital movements, payments, transfers and temporary 
safeguard measures  
Title V: Intellectual property  
Title VI: Public procurement  
Title VII: Small and medium -sized enterprises  
Title VIII: Energy  
Title IX: Transparency  
Title X: Good regulatory practices and regulatory cooperation  
Title XI: Level playing field for open and fair competition and sustainable 
development  
Title XII: Exceptions  
Heading two: Aviation  Title I: Air transport  
Title II: Aviation safety  
Heading three: Road transport  Title I: Transport of goods by road  
Title II: Transport of passengers by road  
Heading four: Social security 
coordination and visas for 
short-term visits  Title I: Social security coordination  
Title II: Visas for short -term visits  
Heading five: Fisheries   
Heading six: Other provisions   
Part Three: Law enforcement and 
judicial cooperation in criminal 
matters  Title I: General provisions  
Title II: Exchanges of DNA, fingerprints and vehicle registration  
Title III: Transfer and processing of passenger name record data  
Title IV: Cooperation on operational information  
Title V: Cooperation with Europol  
Title VI: Cooperation with Eurojust  
Title VII: Surrender  
Title VIII: Mutual assistance  
Title IX: Exchange of criminal record information  
Title X: Anti -money laundering and counter terrorist financing  
Title XI: Freezing and confiscation  
Title XII: Other provisions  
Title XIII: Dispute settlement  
Part Four: Thematic cooperation  Title I: Health security  
Title II: Cyber security  
Part Five: Participation in Union 
programs, sound financial 
management and financial provisions   
Part Six: Dispute settlement and 
horizontal provisions  Title I: Dispute settlement  
Title II: Basis for cooperation  
Title III: Fulfillment of obligations and safeguard measures  
Part Seven: Final provisions   
Annexes   
1 Rules of procedure of the Partnership Council and Committees  
2 Introductory notes to product -specific rules of origin  WT/REG447/1   
 
- 14 - 
 
  Parts/Headings /Titles  Titles  
3 Product specific rules of origin  
4 Origin quotas and alternatives to the product -specific rules of origin in 
Annex 3 
5 Transitional product -specific rules for electric accumulators and 
electrifie d vehicles  
6 Supplier's declaration  
7 Text of the statement of origin  
8 Joint declaration concerning the Principality of Andorra  
9 Joint declaration concerning the Republic of San Marino  
10 Criteria referred to in Article SPS.19(d)  
11 Motor vehicles and equipment and parts thereof  
12 Medicinal products  
13 Chemicals  
14 Organic products  
15 Trade in wine  
16 Arrangement referred to in Article 9 6(4) for the regular exchange of 
information in relation to the safety of non -food products and related 
preventive, restrictive and corrective measures  
17 Arrangement referred to in Article 9 6(5) for the regu lar exchange of 
information  regarding measures taken on non -compliant non -food 
products, other than those covered by Article 9 6(4) 
18 Authorized  economic operators  
19 Existing measures  
20 Future measures  
21 Business visitors for establishment purposes, intra -corporate transferees 
and short -term business visitors  
22 Contractual service suppliers and independent professionals  
23 Movement of natural persons  
24 Guidelines for arrangements on the recognition of professional 
qualifications  
25 Public procurement  
26 Lists of energy goods, hydrocarbons and raw materials  
27 Energy and environmental subsidies  
28 Non-application of third -party access and ownership unbundling to 
infrastructure  
29 Allocation of electricity interconnector capacity at the day -ahead market 
timeframe  
30 Airworthiness and environment certification  
31 Transport of goods by road  
32 Model of authorization for an international regular and special regular 
services  
33 Model of application for an authorization for an international regular and 
special regular service  
34 Model of journey form for occasional services  
35 Fisheries  
36 Fisheries 
37 Fisheries  
38 Protocol of access to waters  
39 Exchanges of DNA, fingerprints and vehicle registration data  
40 Passenger name record data  WT/REG447/1  
 
- 15 - 
 
  Parts/Headings /Titles  Titles  
41 Forms of crime for which Europol is competent  
42 Forms of serious crime for which Eurojust is competent  
43 Arrest warrant  
44 Exchange of criminal record information – technical and procedural 
specifications  
45 Definition of terrorism  
46 Freezing and confiscation  
47 Implementation of the financial conditions  
48 Rules of procedure for dispute settlement  
49 Code of conduct for arbitrators  
Protocol on administrative cooperation and combating fraud in the field of value added tax and on mutual 
assistance for the recovery of claims relating to taxes and duties  
Protocol on mutual administrative assistance in customs matters  
Protocol on social security coordination  
Source:  WTO Secretariat based on the Agreement.  
 
2.8.  The Agreement establishes the basis for a broad relationship between the Parties that goes 
beyond trade matters. Part 1 of the Agreement includes common and institutional provisions. 
Provisions on trade, transport, fisheries and other arrangements  are contained in Part Two. Part Four 
cover s thematic cooperation whereas dispute settlement and horizontal provisions are in Part Six. 
Part Seven includes  final provisions.  Part Three on l aw enforcement and judicial cooperation in 
criminal matters  and Part Five on  the UK's p articipation in EU programmes, sound financial 
management and financial provisions , complemented by Annex 47 to the Agreement,  are not 
discussed in the Factual Presentation as they cover issues not directly related to trade.  
2.9.  A free trade area is  established in conformity with Article  XXIV of the GATT 1994 and Article V 
of the GATS in Article 514.  
2.10.  Democracy, rule of law and respect of human rights, fight against climate change  and 
countering the proliferation of weapons of mass destruction consti tute essential elements of the 
partnership established by the Agreement (Article 771) and if either Party considers that there has 
been a serious and substantial failure by the other Party to fulfil any of the obligations related to 
such essential elements , it may decide to terminate or suspend the operation of the Agreement or 
any supplementing agreement in whole or in part (Article 772).  
2.11.  The Agreement applies to  the territories to which the Treaty on European Union , the Treaty 
on the Functioning of the E uropean Union  (TFEU)10 and the Treaty establishing the European Atomic  
Energy Community are applicable, and  the territory of the United Kingdom  (Article 774) .11 
2.12.  The implementation of the Agreement and supplementing agreements and any matters 
related thereto shall be jointly reviewed by the Parties five years after the entry into force of the 
Agreement and every five years thereafter (Article 776).  
2.13.  Annex 2 to the NI Protocol includes the provisions of EU law applicable to and in the UK in 
respect of No rthern Ireland in respect of customs and movement of goods (Article 5 of the NI 
Protocol). The Annex lists 47 groups of EU regulations, decisions and directives covering, inter alia , 
 
10 The TFEU is one of two treaties forming the constitutional basis of the EU, the other being the Treaty 
on European Union. It was previously known as the Treaty of Rome or the Treaty establishing the European 
Community. As from 1 December 2009, the Lisbon Treaty si gnificantly revised (and renamed) the Treaty on 
the Functioning of the European Union (TFEU) and the Treaty on European Union (TEU), the other principal EU 
Treaty. The TFEU sets out organisational and functional details of the European Union. The TFEU and TEU are 
accompanied by many protocols and declarations, as well as the Charter of Fundamental Rights of the EU . 
11 The Agreement does not apply to Gibraltar and overseas territories having special relations with the 
United Kingdom but provisions on fisherie s and Article 520 on geographical application also apply to the 
Bailiwicks of Guernsey, and Jersey and the Isle of Man.  WT/REG447/1   
 
- 16 - 
 
  general customs aspects, trade defence instruments, SPS, intellectual pro perty and a number of 
sectors such as food, motor vehicles, textiles and footwear, medical devices, medicinal products and 
chemicals.  
2.14.  Annex 3 to the NI Protocol includes the provisions of EU law on VAT and excise applicable to 
and in the UK in respect of N orthern Ireland  (Article 8 of the NI Protocol) . In respect of Northern 
Ireland, the authorities of the UK are responsible for the application and the implementation of those 
provisions including the collection of VAT and excise duties.  
2.15.  Throughout the Factu al Presentation, references to the TFEU and relevant EU law are provided 
as comparisons with the conditions that were applicable to the UK while it was a member of the 
EU.12 
3  PROVISIONS ON TRADE IN GOODS  
3.1.  Title I of Heading One of Part Two disciplines trade in goods.  More specifically, Chapter 1 
includes provisions on national treatment and market access for goods including tr ade remedies), 
Chapter 2 provides for rules of origin, Chapters 3 and 4 respectively deal with SPS measures and 
TBTs and Chapter 5 is on customs and trade facilitation.13 
3.1  Import duties and charges, and quantitative restrictions  
3.2.  The objective of Chapter 1 is to facilitate trade in goods between the Parties and to maintain 
liberalised trade in goods in accordance with the provisions of the Agreement (Article 15)  and, unless 
otherwise provided, it applies to trade in goods of a Party (Article 16) . 
3.1.1   General provisions  
3.3.  Each Party shall accord i) national treatment to the goods of the other Party in accordance with 
Article III of GATT 1994 includ ing its Notes and Supplementary Provisions which is incorporated into 
and made part of the Agreement, mutatis mutandis  (Article 19)  and ii) freedom of transit through 
its territory , thus Article V of GATT 1994 and its Notes and Supplementary Provisions are 
incorporated into and made part of the Agreement, mutatis mutandis  (Article 20).14  
3.4.  Article 21 prohibits customs duties on all originating goods except as otherwise provided for in 
the A greement. Fees and other charges imposed by a Party on or in connection with importation or 
exportation of a good of the other Party shall be limited in amount to the approximate cost of the 
services rendered and shall not represent an indirect protection to domestic goods or taxation of 
imports or exports for fiscal purposes (Article 23). A Party shall not levy fees or other charges on or 
in connection with importation or exportation on an ad valorem  basis.  
3.5.  Separately from the Agreement, the NI Protocol to the Withdrawal Agreement provides that no  
customs duties shall be payable for a good brought into Northern Ireland from another part of the 
UK by direct transport unless that good is at risk of subsequently being moved into the EU, whether 
by itself or forming part of another good following processing (Article 5 of the NI Protocol). For goods 
imported by direct transport into Northern Ireland from third countries, the duties applicable are 
those of the UK, unless that good is at risk of subseque ntly being moved into the EU, whether by 
itself or forming part of another good following processing. Articles 30 and 110 TFEU shall apply to 
and in the UK in respect of Northern Ireland. Quantitative restrictions on exports and imports are 
prohibited betw een the EU and Northern Ireland.  
3.6.  Notwithstanding what the NI Protocol to the Withdrawal Agreement provides for (see above), 
with respect to the Agreement, customs  duties on goods that re -enter a Party's territory after being 
temporarily exported or importe d for repair are prohibited ( Article 24)  and remanufactured goods 
 
12 More details about EU law can be found on the EU Commission website 
https://ec.europa.eu/info/law/law -topic_en  
13 All references to Cha pters in this section refer to Chapters of Title I of Heading One of Part Two unless 
otherwise specified.  
14 The Parties understand that Article V of GATT 1994 includes the movement of energy goods via , 
inter alia, pipelines or electricity grids.  WT/REG447/1  
 
- 17 - 
 
  are granted treatment that is not less favourable than that accorded to equivalent goods in new 
condition (Article 25).  
3.7.  A Party shall not adopt or maintain any prohibition or restriction on the importation of any good 
except in accordance with Article XI of GATT 1994, including its Notes and Supplementary Provisions , 
which are incorporated into and made part of the Agreement, mutatis mutandis  (Article 26). Import 
price requirements, except as  permitted in enforcement of countervailing and anti -dumping duty 
orders and undertakings, or import licensing conditioned on the fulfilment of a performance 
requirement, are not allowed.  
3.8.  Import monopol ies, defined as the exclusive right or grant of authority by a Party to an entity 
to import a good from the other Party,  are prohibited (Article 27).   
3.9.  For the purpose of monitoring the functioning of the Agreement and calculating preference 
utilisation rates, the Parties shall annually exchange import s tatistics for 10 year s starting one year 
after the entry into force (Article 31).  The UK and EU exchanged import data in September 2022.  
3.10.  Articles 34, 35 and 36 respectively include provisions on measures in case of breaches or 
circumventions of customs leg islation, management of administrative errors and cultural property . 
3.1.2   Liberalization of trade and tariff lines  
3.11.  Tariffs on t rade between the Parties remain s fully liberalized under the Agreement as it was 
when the UK was a member of the EU. The tariff analys is below provides a comparison between the 
liberalization under the Agreement and the MFN tariff level in order to show the reciprocal 
preferential access to each other's market compared to the conditions for third parties that do not 
have an agreement wit h either Party.  
3.1.3   Liberalization maintained under the Agreement  
3.1.3.1   European Union  
3.12.  The EU's applied MFN tariff in 2021 consisted of 9,494 lines at the eight -digit level (HS 2017). 
89.3% of the tariff rates were ad valorem  and 1,015 lines had non -ad valorem  tariffs.15  
3.13.  Table 3.1 shows tariff elimination commitments by the EU under the Agreement. In 2021, 
2,535 lines were duty free on an MFN basis, representing 26.7% of the EU's tariff, corresponding to 
43.1% of its im ports from the UK during 2018 -2020. Under the Agreement, all tariff lines remained 
duty free maintaining free access for all imports fr om the UK.  
Table 3.1 European Union: Tariff elimination commitments under the  Agreement and 
corresponding average trade  
Duty phase -out 
period  Number 
of lines  % of total 
lines in EU's 
tariff schedule  Value of EU's imports 
from the UK  
(2018-2020) 
in Euro million  % of EU's total 
imports from  
the UK  
2018-2020  
MFN duty free (2021)  2,535  26.7 74,980.7  43.1 
2021 6,959  73.3 99,110.8  56.9 
Remain dutiable  - - - - 
Total  9,494  100.0  174,091.5  100.0  
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data from WTO -IDB and the EU authorities.  
 
15 More spe cifically, 647 lines presented specific tariffs, 199 had compound tariffs, 64 were mixed and 
78 were other duty.  WT/REG447/1   
 
- 18 - 
 
  3.1.3.2   United Kingdom  
3.14.  The UK's applied MFN tariff in 2021 consisted of 9,494 lines at the eight -digit level (HS 2017). 
90.7% of the tariff rates were ad valorem  (this includes tariff free lines and seasonal tariffs) and 
881 lines had non -ad valorem  tariffs.16 
3.15.  Table 3.2 shows tariff elimination commitments by the UK under the Agreement. In 2021, 
4,462 lines were duty free on an MFN basis, representing 47% of the UK's tariff, correspond ing to 
43.7% of its imports from the EU during 2018 -2020. Under the Agreement, all tariff lines remained 
duty free maintaining free access for all imports fr om the EU.  
Table 3.2 United Kingdom: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Tariff lines in UK's tariff schedule  UK's imports from the EU (2018 -20)a 
Number  % Value ( Euro  
million)b % 
2021 (MFN)  4,462 47.0 116,861.5  43.7 
2021 5,032 53.0 150,541.7  56.3 
Remain dutiable  - - - - 
Total 9,494  100.0  267,403.2  100.0  
a Import coverage is for HS chapters 1 -97. 
b  Import values were reported in GBP and converted into USD using the exchange rates of 0.7 5 
(2018), 0.78 (2019) and 0.7 8 (2020), then converted from USD into Euro using the exchange rates 
of 0.85 (2018), 0. 89 (2019), 0. 88 (2020) .  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature  / Common Nomenclature  2021.  
Source:  WTO estimates based on data provided by  the UK authorities (as of July 2021) . 
 
3.1.4   Tariff rate quotas  
3.16.  There are no tariff rate quotas under the Agreement .17  
3.17.  Article 33 disciplines the use of existing WTO TRQs. Products originating in one Party are not 
eligible to be imported into the other Party under the EU's WTO TRQs  as reflected  in the draft EU28 
schedule of concessions and commitments submitted to the WTO in document G/MA/TAR/RS/506 
and amended by documents G/MA/TAR/RS/506/Add.1 and G/MA/TAR/RS/506/Add.2 .18 For the 
purposes of Article 33, the originating status of the products shall be determined on the basis of 
non-preferential rules of origin applicable i n the importing Party.  
3.2  Rules of origin  
3.18.  Preferential rules of origin are set out in Chapter 2 of Title I of Heading One of Part Two .19 A 
product qualifies as originating if it is wholly obtained in a Party, as defined in Article 41, produced 
in a Party excl usively from originating materials in that Party or produced in a Party incorporating 
non-originating materials provided they satisfy the requirements set out in Annex es 2 and  3 of the 
Agreement  (Article 39). The Article includes an absorption rule such th at if a product has acquired 
originating status, the non -originating materials used in the production of that product shall not be 
considered as non -originating when that product is incorporated as a material in another product.  
3.19.  Specific rules of origin in  Annex 3  to the Agreement  include changes in the Chapter, heading 
or subheading  levels , and maximum values of non -originating materials and specific processes (for 
 
16 More specifically, 683 lines presented specific tariffs, 194 had compound tariffs and 4 were mixed.   
17 The UK TRQ commitments that were maint ained as part of the EU Schedule are currently being 
renegotiated pursuant to Article XXVIII of the GATT 1994 and based on an apportionment calculated by the EU 
and the UK.  
18 This includes those TRQs as being apportioned between the Parties pursuant to Art icle XXVIII GATT 
negotiations initiated by the EU . 
19 Chapter 2 does not apply to anti -dumping, countervailing and safeguard investigations and measures 
(Article 32).  WT/REG447/1  
 
- 19 - 
 
  products in Sections V to VII and XI).  Annex 4 to the Agreement includes alternative rules o f origins 
to those set out in Annex 3 to the Agreement applicable within the limits of the annual quota  specified 
therein for canned tuna  (HS 160414 and 160420)  and aluminium products  (HS 7603 to 7608 and 
7616) .20 Annex 5 to the Agreement includes transitional product -specific rules for electric 
accumulators and electrified vehicles applicable from the entry into force of the Agreement until 31 
December 2023 and transitional rules applicable from 1 January 2024 until 31 December 2026 .21 
3.20.  Article 40 provides for bilateral cumulation of origin .  
3.21.  Article 42 provides for a de minimis  or tolerance rule.22 If a product does not satisfy the 
requirements set out in Annex 3 to the Agreement due to the use of a non -originating material, that 
product sh all nevertheless be considered as originating in a Party provided that i) for HS Chapter 2 
and HS Chapters 4 to 24, except fishery products in HS Chapter 16, the total net weight of non -
originating materials does not exceed 15% of the weight of the product , or ii) for all other products 
except those in HS Chapters 50 to 63, the total value of non -originating materials does not exceed  
10% of the ex -works price. Specific thresholds for products in HS Chapters 50 to 63 are specified in 
Notes 7 and 8 of Annex 2  to the Agreement . 
3.22.  Articles 44 through 53 contain disciplines on unit of qualification, packing materials and 
containers for shipment and retail sale, accessories, spare parts and tools, sets, neutral elements, 
accounting segregation, return products, non -alteration and the review of drawback or exemption 
from customs duties.  
3.23.  Section 2  of Chapter 2 sets out disciplines on origin procedures. Preferential tariff treatment 
shall be granted to a product originating in the other Party on the basis of a claim by  the importer 
for preferential tariff treatment based on a statement that the product is originating made out by 
the exporter or that the importer's knowledge that the product is originating (Article 54). Article 60 
grants preferential tariff treatment to small consignments exempting from the proof of origin while 
Article 61 provides for verification of origin and Article 63 disciplines the denial of preferential 
treatment under certain conditions.  Annexes 6 through 9 complement the disciplines on rules of 
origin .23 
3.24.  Article 66 clarifies the status of Ceuta and Melilla stating that, for the purpose of the Chapter, 
the term Party does not include Ceuta and Melilla. However, products originating in the UK, when  
imported into Ceuta or Melilla, are subject to the same customs treatment as that which is applied 
to products originating in the EU, as provided for under Protocol 2 to the Act concerning the 
conditions of accession of the Kingdom of Spain and the Portug uese Republic and the adjustments 
to the Treaties. The UK shall grant the same customs treatment to products originating in Ceuta and 
Melilla as that granted to products originating in the EU.  
 
20 The alternative rules of origin for canned tuna is a change chapter while the general rule of origin 
requires production in which all the materials of HS Chapters 1 and 2 (for HS 160420) and of HS Chapters 1, 2, 
3 and 16 (for HS 160414) used are wholly ob tained. The alternative rule of origin for aluminium products is a 
change in tariff heading (with some exceptions for certain no -originating materials) while the general rule 
requires both a change in tariff heading and a maximum value of non -originating m aterial of 50%. The quotas 
for aluminium shall be reviewed, at the request of either Party, by the Trade Partnership Committee not earlier 
than 5 years from the entry into force of the Agreement and not earlier than 5 years from the completion of 
any previ ous review of such quotas.  
21 Rules of origin for heading 8507 applicable form 1 January 2027 (contained in Annex 3) shall be 
reviewed, at the request of either Party, by the Trade Partnership Committee not earlier than 4 years from the 
entry into force of  the Agreement.  
22 The tolerance rule does not apply if the value or weight of non -originating materials used in the 
production of a product exceeds any of the percentages for the maximum value or weight of non -originating 
materials as specified in the requ irements set out in Annex 3 or to products wholly obtained in a Party within 
the meaning of Article 41.  
23 Annexes 6 through 9 cover: supplier's declaration; text of the statement on origin; joint declaration 
concerning the Principality of Andorra; and joi nt declaration concerning the Republic of San Marino.  WT/REG447/1   
 
- 20 - 
 
  3.3  Export duties and charges, and quantitative restrictions  
3.25.  Duty, taxes or other charge of any kind imposed on, or in connection with, the exportation of 
a good to the other Party cannot be adopted or maintained (Article 22). Similarly, any internal tax 
or other charge on a good exported to the other Party that is in excess of the tax or charge that 
would be imposed on like goods , when destined for domestic consumption , cannot be adopted or 
maintained.  
3.26.  A Party shall not adopt or maintain any prohibition or restriction on the exportation of any 
good, except in accord ance with Article XI of GATT 1994, including its Notes and Supplementary 
Provisions (Article 26). Export price requirements, except as permitted in enforcement of 
countervailing and anti -dumping duty orders and undertakings, are not allowed.  
3.27.  Export monopol ies, defined as the exclusive right or grant of authority by a Party to an entity 
to export a good to the other Party, are prohibited (Article 27).  
3.28.  Each Party shall publish any new export licensing procedure, or any modification to an existing 
export lice nsing procedure to enable Governments, traders and other interested parties to become 
acquainted with them (Article 29).  
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.29.  Chapters 3 and 4 of Title I (Part Two, Heading One)  contain specific regulatory prov isions on 
SPS and TBT matters, while Title X, which governs "Good regulatory practices and regulatory 
cooperation" also contains relevant disciplines  (Section 5.10.8)   
3.4.1.1   Sanitary and phytosanitary measures  
3.30.  Chapter 3 of Title I of Heading One of Part Two covers sanitary and phytosanitary measures  
and applies to all SPS measures of a Party that may, directly or indirectly, affect trade between the 
Parties (Article 70). Chapter 3 also contains provisions regarding cooperation on animal welfare, 
antimicrobial res istance and sustainable food systems.  
3.31.  The Parties reaffirm their rights and obligations under the WTO SPS Agreement (Article 72).  
3.32.  The Agreement does not provide for a mechanism for recognizing equivalence for SPS 
measures which, according to Article 73, shall be based on risk assessments and shall not create 
unjustified barriers to trade. Each Party shall ensure that trade -related SP S procedures and related 
measures i) are initiated and completed without undue delay, ii) do not include unnecessary, 
scientifically and technically unjustified or unduly burdensome information requests, iii) are not 
applied in a manner constituting arbitr ary or unjustifiable discrimination, and iv) are proportionate 
to the risks identified and not more trade restrictive than necessary to achieve the importing Party's 
appropriate level of protection. SPS procedures or requests for information shall not be u sed to delay 
access to markets without scientific and technical justification  and a ny administrative procedure shall 
not be more burdensome or trade restrictive than necessary to give the importing Party adequate 
confidence that import conditions are met.  
3.33.  Official certificates, when required by the importing Party, shall be set in line with the 
principles of international standards and applicable to imports from all parts of the territory of the 
exporting Party (Article 74).  
3.34.  Import conditions and procedures  are set out in Article 75. The importing Party may require 
that imports of particular products are subject to authorisation .24 Import conditions for all products 
shall be applied in a proportionate and non -discriminatory manner. The exporting Party shall ensure 
that it s exported products  meet the SPS requirements of the importing Party. Where a phytosanitary 
 
24 The importing Party shall not introduce authorisation requirements which are additional to those 
which apply at the end of the transition period, unless the application of such requirements to further  products 
is justified to mitigate a significant risk to human, animal or plant health.  WT/REG447/1  
 
- 21 - 
 
  concern exists, the import conditions shall be restricted to measures to protect against regulated 
pests of the importing Party and shall be applicabl e to the entire territory of the exporting Party. 
Each Party shall ensure that all SPS control, inspection and approval procedures are initiated and 
completed without undue delay. The importing Party shall accept consignments without requiring 
the verifica tion of compliance before their departure from the territory of the exporting Party,  but it 
has the right to carry out import checks for the purposes of ensuring compliance with its SPS import 
requirements.  
3.35.  If the importing Party considers that there is a serious risk to human, animal or plant life and 
health, it may take without prior notification the necessary measures for the protection of human, 
animal or plant life and health (Article 81).  
3.36.  Whenever justified, the importing Party may maintain a list of approved establishments 
meeting its import requirements as a condition to allow imports of animal products ( Article 76 ).  
3.37.  Audits and verifications by the importing Party of the other Party's inspection and certification 
system and of the results of the con trols carried out under the exporting Party's inspection and 
certification system are provided for in Article 79.  
3.38.  Article 77 deals with transparency and exchange of information  while Article 80 includes 
notification requirements and provides for consultation s if a Party has a significant concern with 
respect to food safety, plant or animal health or an SPS measure that the other Party has proposed 
or implemented.  
3.39.  The Parties recognise the concept of zoning including disease or pest -free areas, protected 
zones and areas of low disease or pest prevalence and shall apply it to trade between them in 
accordance with the SPS Agreement, including guidelines to further the practical implementation of 
Article 6 of the SPS Agreement and the rele vant recommendations, standards and guidelines of the 
World Organisation for Animal Health and the International Plant Protection Convention (Article 78).  
3.40.  The Parties agree to cooperate in multilateral fora on the development of international 
standards, guidelines and recommendations on SPS (Article 82) and, for the purposes of the 
implementation of the Chapter, each Party shall take into account decisions of the WTO SPS 
Committee, the work of the relevant international standard setting bodies,  any knowledge and past 
experience it has of trading with the exporting Party and information provided by the other Party 
(Article 83).  Articles 84 and 85 provide for cooperation on animal welfare and antimicrobial 
resistance.  
3.41.  The Trade Specialised Commit tee on Sanitary and Phytosanitary Measures shall supervise the 
implementation and operation of the Chapter and its functions include, inter alia , clarifying  any issue 
raised by a Party relating to the development, adoption or application of SPS requirement s, 
standards and recommendations,  discussing ongoing processes on the development of new 
regulations, discussing a Party's concern regarding SPS import conditions and procedures and  
reviewing the Parties' SPS measures  (Article 87) . Annex 10 to the Agreemen t complements the 
disciplines by providing a list of criteria referre d to in point (d) of Article 87. Information regarding 
meetings of the Trade Specialised Committee on Sanitary and Phytosanitary Measures is available 
online.25 
3.4.1.2   Technical barriers to trad e 
3.42.  Chapter 4 of Title I of Heading One of Part Two covers technical barriers to trade . It applies 
to the preparation, adoption and application of all standards, technical regulations and conformity 
assessment procedures, which may affect trade in goods betw een the Parties (Article 89). It does 
not apply to purchasing specifications prepared by governmental bodies for production or 
consumption requirements of such bodies or SPS measures within the scope of Cha pter 3. 
 
25 UK: Trade Specialised Committee on Sanit ary and Phytosanitary Measures - GOV.UK (www.gov.uk) . 
EU: Trade Specialised Committee on Sanitary and Phytosanitary Measures under the EU -UK Trade and 
Cooperation Agreement | European Commission (europa.eu)  WT/REG447/1   
 
- 22 - 
 
  3.43.  Articles 2 to 9 of the TBT Agreement and its Annexes 1 and 3 are incorporated into and made 
part of the Agreement mutatis mutandis  (Article 90).   
3.44.  The Agreement does not provide for mandatory recognition of technical regulations and 
conformity assessment processes. Article s 91 and 93 provide for the use of relevant international 
standards as a basis for technical regulations and conformity assessment  procedures , except when 
a Party can demonstrate that such international standards would be an ineffective or inappropriate 
means for the fulfilment of the legitimate objectives pursued. If a Party does not use international 
standards as a basis for a tech nical regulation  or conformity assessment procedures , on request by 
the other Party, it shall identify any substantial deviation from the relevant international standard, 
explain why it was  judged inappropriate or ineffective and provide scientific or tech nical evidence. 
Each Party shall carry out impact assessments of planned technical regulations  and conformity 
assessment procedures  and assess the available regulatory and non -regulatory alternatives to the 
proposed technical regulation  or conformity asses sment procedure . Each Party shall review its 
technical regulations  and conformity assessment procedures  to increase convergence with relevant 
international standards. Article 91 also provides for public consultation when a new major technical 
regulation or conformity assessment procedure may have a significant effect on trade . Additional 
disciplines for conformity assessment  procedures are included in Article 93 .  
3.45.  The Parties shall encourage their standardizing bodies and the regional standardizing bodies 
of which they are members to cooperate in international standardization activities (Article 92). They 
undertake to exchange information on their use of standards in support of technical regulations, 
their standardization processes and the extent to which th ey use international or regional standards 
as a base for their national standard s.  
3.46.  Technical regulations may include or exclusively address mandatory marking or labelling 
requirements . The principles of Article 2.2 of the TBT Agreement apply to such techn ical regulations. 
Additional disciplines for marking and labelling are  set out in Article 95.  
3.47.  If a Party considers that a draft or proposed technical regulation or conformity assessment 
procedure of the other Party might have a significant effect on trade  between the Parties, it may  
request technical discussions on the matter  (Article 97).  
3.48.  Article 94 provides for transparency while contact points for the implementation of the 
Chapter shall be established by the Parties under Article 99.  The exchange of con tact point 
information was completed in early 2021.   
3.49.  Article 96, and Annexes 16 and 17 to the Agreement,  provide for cooperation on market 
surveillance and non -food product safety and compliance while Article 98 provides for cooperation  
more generally . 
3.50.  Annexes 11 to 15 to the Agreement include TBT provisions specific to motor vehicles and 
equipment and parts thereof, med icinal products, chemicals, organic products and wine and are 
discussed later in the Factual Presentation.  
3.51.  The Trade Specialised Committee on Technical Barriers to Trade shall supervise the 
implementation and operation of Chapter Four and its Annexes and s hall promptly clarify and address 
any issue raised by a Party relating to the development, adoption or application of technical 
regulations, standards and conformity assessment procedures (Article 100).  Information regarding 
the Trade Specialised Committee  on Technical Barriers to Trade is available online.26  
3.52.  Separately to the Agreement the Northern Ireland Protocol to the Withdrawal Agreement 
provides that, without  prejudice to the provisions of applicable EU law referred to in Annex 2 to the 
NI Protocol , the lawfulness of placing goods on the market in Northern Ireland shall be governed by 
the law of the UK as well as, as regards goods imported from the EU, by Articles 34 and 36 of the 
TFEU, except for registrations, certifications, approvals and authoris ations of sites, installations or 
premises in Northern Ireland and veterinary certificates or official labels for plant reproductive 
material (Article 7 of the NI Protocol ). Where applicable provisions of EU law provide for the 
 
26 UK: Trade Specialised Committee on Technical Barriers to Trade - GOV.UK (www.gov.uk)  
EU: Trade Specialised Committee on Technical Barriers to Trade | European Commission (europa.eu)  WT/REG447/1  
 
- 23 - 
 
  indication of a EU member  state in markings, labelling, tags or any other means, the UK in respect 
of Northern Ireland shall be indicated as "UK(NI)" or "United Kingdom (Northern Ireland)". The UK 
in respect of Northern Ireland may not initiate objection, safeguard or arbitration pro cedures 
provided for in provisions of applicable EU law to the extent that those procedures concern the 
technical regulations, standards, assessments, registrations, certificates, approvals and 
authorisations issued or carried out by competent authorities of the EU members States. T he test 
and release by a qualified person in Northern Ireland of a batch of a medicinal product imported into 
or manufactured in Northern Ireland is allowed.  
3.4.2   Safeguard mechanisms  
3.53.  Disciplines on safeguards for goods are included in Title I of Heading One of Part Two and 
Title III of Part Six.  
3.4.2.1   Global safeguards  
3.54.  The Parties affirm their rights and obligations under Article XIX of GATT 1994, the Safeguards 
Agreement and Article 5 of the Agreement on Agriculture (Article 32). A Party shall not apply or 
maintain, with respect to the same good, at the same time a measure pursuant to Article 5 of the 
Agreement on Agriculture and a measure pursuant to Article XIX of GATT 1994 and the Safeguards 
Agreement.  
3.55.  Chapter 2 of  Title I (rules of origin) of Heading One of Part Two and Title I of Part Six (dispute 
settlement) do not apply to safeguard investigations and measures.  
3.4.2.2   Bilateral safeguards  
3.56.  If serious economic, societal or environmental difficulties of a sectoral or regi onal nature, 
including in relation to fishing activities and their dependent communities, that are liable to persist 
arise, the Party concerned may unilaterally take appropriate safeguard measures (Article 773). Such 
safeguard measures shall be restricted with regard to their scope and duration to what is strictly 
necessary in order to remedy the situation and priority shall be given to measures which will least 
disturb the functioning of the Agreement.  
3.57.  The Party concerned shall, without delay, notify the other Party through the Partnership 
Council and shall provide all relevant information. The Parties shall immediately enter into 
consultations with a view to finding a mutually agreeable solution.27 
3.58.  If a safeguard measure taken by a Party creates an imbala nce between the rights and 
obligations under the Agreement, the other Party may take proportionate rebalancing measures as 
are strictly necessary to remedy the imbalance.  
3.59.  Either Party may, without having prior recourse to consultations, initiate the arbitr ation 
procedure referred to in Article 739 (summarized in paragraph 5.25.  of the factual presentation) to 
challenge a safeguard measure taken by the other Party.   
3.4.2.3   Special safeguards  
3.60.  The Agreement does not include provisions on special safeguards.  
3.4.2.4   Balance of payments safeguards  
3.61.  The possibility of imposing restrictive measures with regard to capital movements, payments, 
or transfers in relation to trade  in goods in order to safeguard a Party's balance -of-payments or 
external financial position is addressed in Article 218. Such temporary measures shall be in 
accordance with the WTO Agreement and consistent with the Articles of Agreement of the IMF.  
 
27 Safeguard measures cannot be taken until one month after the date  of notification unless the 
consultation procedure has been jointly concluded before the expiration of the stated time limit or in 
exceptional circumstances.  WT/REG447/1   
 
- 24 - 
 
  3.4.3   Anti-dumping and countervailing measures  
3.62.  The Parties affirm their rights and obligations under Article VI of GATT 1994, the Antidumping 
Agreement and the SCM Agreement (Article 32).  Each Party shall apply anti -dumping and 
countervailing measures in accordance wi th the requirements of the Anti -Dumping Agreement and 
the SCM Agreement, and pursuant to a fair and transparent process. Under the Customs Union, the 
UK was subject to anti -dumping and countervailing measures that were applied on an EU wide basis.  
3.63.  Chapter 2 (rules of origin) of Title I of Heading One of Part Two and Title I of Part Six (dispute 
settlement) do not apply to anti -dumping and countervailing investigations and measures.  
3.4.4   Subsidies  and State aid   
3.64.  Chapter 3 of Title XI (level playing field for open and fair competition and sustainable 
development)28 deals with subsidy control.   
3.65.  Subsidies are defined as financial assistance which i) arises from the resources of the Parties, 
including direct or contingent transfer of funds such as direct grant s, loans or loan guarantees, the 
forgoing of revenue that is otherwise due or the provision or purchase of goods or services, ii) confers 
an economic advantage on one or more economic actors, iii) is specific insofar as it benefits, as a 
matter of law or f act, certain economic actors over others in relation to the production of certain 
goods or services and iv) has, or could have, an effect on trade or investment between the Parties 
(Article 363). For the purposes of this Chapter, economic actors means an e ntity or a group of 
entities constituting a single economic entity, regardless of its legal status, that is engaged in an 
economic activity by offering goods or services in the market.  
3.66.  Chapter 3 does not apply to subsidies i) of a social character targete d at final consumers, ii) 
below a threshold  of 325 000 Special Drawing Rights , and iii) subject to the provisions of Part IV or 
Annex 2 of the WTO Agreement on Agriculture and subsidies related to trade in fish and fish products 
(Article 364)29. Some Articles in Chapter 3 do not apply to subsidies granted to compensate the 
damage caused by natural disasters or other exceptional non -economic occurrences , subsidies 
granted on a temporary basis to respond to a national or global economic emergency  or subsidies 
financed by resources of a Party at supranational level . 
3.67.  Each Party shall have in place and maintain an effective system of subsidy control that ensures 
that the following subsidy principles are respected: i) pursue a specific public policy obje ctive to 
remedy an identified market failure, ii) are proportionate and limited to what is necessary to achieve 
the objective, iii) are designed to bring about a change of economic behaviour of the beneficiary that 
is conducive to achieving the objective and that would not be achieved in the absence of subsidies 
being provided,  iv) should not normally compensate for the costs the beneficiary would have funded 
in the absence of any subsidy, v) are an appropriate policy instrument to achieve a publ ic policy 
objective and that objective cannot be achieved through other less distortive means , and vi) their 
positive contributions to achieving the objective outweigh any negative effects (Article 366).  
3.68.  Subsidies in the form of unlimited guarantees and su bsidies contingent upon the use of 
domestic content are prohibited while subsidies for restructuring an ailing or insolvent economic 
actor,30 subsidies in the context of large cross -border or international cooperation projects, and 
subsidies in relation to  energy and environment are subject to conditions  (Article 367) . Export 
subsidies are prohibited except in relation to short term credit insurance for non -marketable risks 
or export credits or export guarantee or insurance programmes that are permissible u nder the WTO 
SCM Agreement . 
3.69.  Each Party shall ensure that economic actors use subsidies only for the specific purpose for 
which they are granted (Article 368).  
3.70.  Article 369 provides for transparency while Article 370 disciplines consultations on subsidy 
control. If a Party considers that the other Party granted or that there is clear evidence that the 
 
28 Part Two, Heading One of the Agreement.  
29 Chapter 3 does not apply  either  to subsidies related to the audio -visual sector (Article 36 4.6) 
30 Defined by the Agreement as one that would almost certainly go out of business in the short to 
medium term without the subsidy (Article 367.3).  WT/REG447/1  
 
- 25 - 
 
  other Party intends to grant a subsidy that has or could have a negative effect on trade or investment 
between the Parties , it may request to the other Party t o provide  i) an explanation of how the 
principles set out in Article 366 have been respected and ii) the information listed in Article 369.31 
The other Party shall provide the requested information in writing no later than 60 days of the receipt 
of the req uest. If after receiving the information, the requesting Party still considers that the subsidy 
has or could have a negative effect on trade or investment  between the Parties , it may request 
consultations within the Trade Specialised Committee on Level Pla ying Field for Open and Fair 
Competition and Sustainable Development which shall make every attempt to arrive at a mutually 
satisfactory resolution of the matter.  
3.71.  The obligation to establish an independent authority or body with an appropriate role in a 
Party's subsidy control regime is provided for in Article 371. For the UK, the  Subsidy Advice Unit 
within the Competition and Markets Authority will provide independent advisory reports regarding 
certain subsidies that are referred by public authorities and  will periodically monitor and review the 
operation of the subsidy control regime.  For the European Union, the independent authority in charge 
of subsidy control is the European Commission (DG Competition).  Articles 372, 373 and 374 
respectively  deal with  courts and tribunals , recovery and remedial measures.  In accordance with the 
Parties' laws, d omestic courts must be competent to hear cases , inter alia , to review subsidy 
decisions taken by the granting or independent authority and impose remedies (Article 372).32 Article 
373 requires each Party to have an effective mechanism of recovery for subsidies in cases where a 
court or tribunal has made a finding of material error of law. Article 374 provides for remedial 
measures  following consultations regarding subsidies considered by one of the Parties as causing or 
at serious risk of causing a significant negative effect on trade or investment between the Part ies.  
3.72.  The d ispute settlement provisions of the Agreement apply, under certain conditions, to 
disputes between the Parties concerning the interpretation and application of the Chapter, except 
for Articles 371  (independent authority)  and 372 (courts  and trib unals ) (Article 375).  An arbitration 
tribunal shall have no jurisdiction regarding (a) an individual subsidy, including whether such a 
subsidy has respected the principles set out in Article 366(1), other than with regard to the conditions 
set out in Artic le 367(2), Article 367(3), (4) and (5), Article 367(8) to (11) and Article 367(12); and 
(b) whether the recovery remedy within the meaning of Article 373 has been correctly applied in 
any individual case (Article 375).  
3.73.  Chapter 4 of Title XI of Heading One  of Part Two  governs state -owned enterprises, enterprises 
granted special rights or privileges and designated monopolies and is described in Section 5.11  of 
the factual presentation.  
3.74.  Article 411 sets out the procedures that apply to rebalancing measures that either Party may 
take if material impacts on trade or investment between the Parties are arising as a result of 
significant divergences between the Parties in policies and prioriti es including with respect to subsidy 
control.  
3.75.  The Agreement does not contain any provision on State aid.  
3.76.  Separately to the Agreement Annex 5 to the NI Protocol includes the provisions of EU law on 
state aid applicable to and in the UK in respect of Norther n Ireland (Article 10 of the NI Protocol). 
The provisions of EU law in Annex 5 do not apply with respect to measures taken by the UK to 
support the production of and trade in agricultural products in Northern Ireland up to a determined 
maximum overall annu al level of support, and provided that a determined minimum percentage of 
that exempted support complies with the provisions of Annex 2 to the WTO Agreement on 
Agriculture. The determination of the maximum exempted overall annual level of support and the 
minimum percentage is governed by the procedures set out in Annex 6 to the NI Protocol.  
 
31 The information that can be requested unless already publicly ava ilable include the legal basis and 
policy objective or purpose of the subsidy, the name of the recipient of the subsidy, the date of the grant of the 
subsidy, the duration of the subsidy and any other time limits, and the amount of the subsidy (Article 369 ). 
32 Moreover, each Party shall have the right to intervene, with the permission, where required, of the 
court or tribunal concerned, in accordance with the laws and procedures of the Party.  WT/REG447/1   
 
- 26 - 
 
  3.4.5   Customs -related procedures  
3.77.  Import licensing procedures can be adopted or maintained only if other appropriate 
procedures to achieve an administrative purpose are not rea sonably available and each Party shall 
ensure that they are neutral in application and are administered in a fair, equitable, non -
discriminatory and transparent manner (Article 28). Non -automatic import licensing procedures are 
prohibited unless necessary to implement a measure that is consistent with the Agreement. Each 
Party shall introduce and administer any import licensing procedure in accordance with Articles 1 to 
3 of the WTO Import Licensing Agreement, which are incorporated into and made part of th e 
Agreement mutatis mutandis .  
3.78.  Each Party shall determine the customs value of imported goods in accordance with Article 
VII of GATT 1994 and the Customs Valuation Agreement . Article VII of GATT 1994 and Articles 1 to 
17 of the Customs Valuation Agreement are incorporated into and made part of the Agreement, 
mutatis mutandis (Article 30).  
3.79.  Rules governing customs and trade facilitation are contained in Chapter 5  of Title I of Heading 
One of Part Two . Article 103 provides for cooperation on customs matters. The Parties commit to, 
inter alia , develop cooperation on exchanging information on customs legislation and procedures, 
working together on the customs -related aspects of securing and facilitating the international trade 
supply chain, strengthening their c ooperation in international organisations such as the WTO and 
the World Customs Organization (WCO) , endeavouring to harmonise their data requirements for 
import, export and other customs procedures, establishing mutual recognition of Authorised 
Economic Operator programmes, enforcing intellectual property rights by customs authorities and 
maintaining compatible customs procedures  where it is appropriate and practicable to do so  
(Article  103).  The customs authorities of the Parties shall provide e ach other with administrative 
assistance regarding customs and trade facilitation in accordance with the Protocol on mutual 
administrative assistance in customs matters.  
3.80.  Each Party shall ensure that its customs provisions and procedures are consistent with  
international instruments and standards applicable in the area of customs and trade, including the 
WTO Trade Facilitation Agreement (Article 104).  The customs provisions and procedures of the 
Parties shall provide for the protection of legitimate trade th rough effective enforcement and 
compliance with legislative requirements, avoid unnecessary or discriminatory burdens on economic 
operators, and provide for further facilitation for operators with high levels of compliance and ensure 
safeguards against fra ud and illicit or damaging activities. based on legislation that is They shall 
simplify and review requirements and formalities, wherever possible, and work towards further 
simplification and standardisation of data and documentation required by customs or  other agencies  
and promote coordination between all border agencies.  
3.81.  Each Party shall adopt or maintain customs procedures that provide for i) the prompt release 
of goods within a period no longer than necessary to ensure compliance with its laws and regulations, 
ii) advance electronic submission and processing of documentation, and iii) the possibility , where 
appropriate and if necessary conditions are satisfied,  of releasing goods for free circulation at the 
first point of arrival  (Article 105). Customs procedures shall allow for  the release of goods prior to 
the final determination of customs duties, taxes, fees and charges . As a condition for release, each 
Party may require a guarantee not greater than the amount the Party requires to ensure payment 
of customs duties, taxes, fees and charges. The Parties shall ensure cooperation between customs 
and other authorities responsible for border controls and procedures dealing with importation, 
exportation and transit of goods.   
3.82.  In order to reduce the time and costs for traders or operators, including small and medium -
sized enterprises , the Parties shall work towards the simplification of requirements and formalities 
for customs procedures,  and t hey shall adopt or maintain measures allowing traders or operators 
fulfilling criteria specified in their laws and regulations to benefit from further simplification of 
customs procedures (Article 106).  
3.83.  The Parties shall ensure the facilitation and effecti ve control of transhipment operations and 
transit movements through their territory and cooperation and coordination between all authorities 
and agencies concerned (Article 107). They shall promote and implement regional transit 
arrangements with a view to  facilitating trade in compliance with the Common Transit Convention.  WT/REG447/1  
 
- 27 - 
 
  3.84.  Each Party endeavours  to establish a single window for traders to submit documentation or 
data required for importation, exportation, or transit of goods (Article 118).  
3.85.  Articles 108 to 1 17 contain provisions on risk management, post -clearance audit, Authorised 
Economic Operators,33 publication and availability of information, advance rulings, customs brokers, 
pre-shipment inspection, review and appeal, relations with the business communit y and temporary 
admission. Articles 119 and 120 provide for facilitation of roll -on, roll -off traffic and administrative 
cooperation in VAT and mutual assistance for recovery of taxes and duties.  
3.86.  Separately to the Agreement, the Northern Ireland Protocol p rovides that nothing  in the NI 
Protocol shall prevent the EU from ensuring unfettered market access for goods moving from 
Northern Ireland to other parts of the UK's internal market (Article 6 of the NI Protocol). EU laws 
made applicable by the NI Protocol  which prohibit or restrict the exportation of goods shall only be 
applied to trade between Northern Ireland and other parts of the UK to the extent strictly required 
by any international obligations of the EU. The UK shall ensure full protection under int ernational 
requirements and commitments that are relevant to the prohibitions and restrictions on the 
exportation of goods from the EU to third countries as set out in EU law.  
3.87.  Article 6 of the Northern Ireland Protocol also provides that the EU and the UK shall have 
regard to Northern Ireland 's integral place in the United Kingdom 's internal market and use their 
best endeavours to facilitate the trade between Northern Ireland and other parts of the UK under 
the consta nt review of the Joint Committee which s hall adopt appropriate recommendations to 
avoiding controls at the ports and airports of Northern Ireland to the extent possible.  
3.88.  The Trade Specialised Committee on Customs Cooperation and Rules of Origin may adopt 
decisions or recommendations on i) the ex change of customs -related information on, inter alia , 
mutual recognition of risk management techniques, risk standards and controls and customs security 
measures, ii) the arrangements relating to the automatic exchange of information, iii) any issues 
relating to the implementation of the Annex on Authorised Economic Operators, and iv) on the 
procedures for consultation established in Article 63 and on any technical or administrative matters 
relating to the implementation of Chapter 2  (rules of origin) of Title I of Heading One of Part Two 
(Article 122) . Information regarding meetings of the Trade Specialised Committee on Customs 
Cooperation and Rules of Origin is available online.34  
3.5  Sector -specific provisions on trade in goods35 
3.5.1   Fishe ries 
3.89.  The Parties affirm that sovereign rights of coastal States exercised by the Parties for the 
purpose of exploring, exploiting, conserving and managing the living resources in their waters should 
be conducted pursuant to and in accordance with the princ iples of international law, including the 
UN Convention on the Law of the Sea (Article 493).  
3.90.  They shall cooperate to ensure that fishing activities for shared stocks in their waters are 
environmentally sustainable in the long term and contribute to achievi ng economic and social 
benefits (Article 494). The rate of exploitation of  shared stocks should aim at maintain ing and 
progressively restor ing populations of harvested species above biomass levels that can produce the 
maximum sustainable yield. The Article  also lists a number of principles such as, inter alia , applying 
the precautionary approach to fisheries management and promoting the long -term sustainability 
(environmental, social and economic) and optimum utilisation of shared stocks.  
3.91.  Chapter 2 of Headi ng Five  of Part Two  deals with conservation and sustainable exploitation  
and includes provisions on fisheries management and authorisations, compliance and enforcement. 
 
33 Annex 18 to the Agreement contains specific criteria for and treatment of Authorised Economic 
Operators.  
34 UK: Trade Specialised Committee on Customs Cooperation and Rules of Origin - GOV.UK 
(www.gov.uk)  
EU: Trade Specialised Committee on Customs Cooperation and Rules of Origin under the EU -UK Trade 
and Cooperation Agreement | European Commission (europa.eu)  
35 Sector -specific provisions which cover both trade in goods and trade in services, such as on energy or 
digital trade, are addressed in chapter 5 of this factual presentation (general provisions).  WT/REG447/1   
 
- 28 - 
 
  Chapter 3 provides for arrangements on access to water s36 and resources  with shares of the total 
allowable catch for the stocks listed in Annex es 35, 36 and 37 to the Agreement  allocated between 
the Parties  in accordance with the quota s set out in the Annex es.37 Chapter 4 includes provisions on 
governance such as remedial measures and dispute resolution and data sharing.  
3.92.  Separately to the Agreement, the Northern Ireland Protocol provides that EU customs 
legislation  shall apply to and in the UK in respect of Nort hern Ireland, not including the territorial 
waters of the UK (Article 5 of the NI Protocol). However, the Joint Committee shall establish the 
conditions, including in quantitative terms, under which certain fishery and aquaculture products, as 
set out in A nnex I to EU Regulation No 1379/2013, brought into the customs territory of the EU by 
vessels flying the flag of the UK and having their port of registration in Northern Ireland are 
exempted from duties.  
3.93.   Before leaving the EU, the common fisheries policy managing fisheries and aquaculture  
applied to  the UK . The common policy is based on Articles 38 -43 of the TFEU and is aimed at ensuring 
sustainable fisheries , ending wasteful fishing practices  and creating jobs and growth in coastal 
areas.38  
3.5.2   Motor vehicles  
3.94.  Annex 11  to the Agreement  includes disciplines specific to motor vehicles and equipment and 
parts thereof39 with the objective of, inter alia , eliminat ing and prevent ing any unnecessary technical 
barriers to bilateral trade, promot ing the compatibility and convergence of regulations based on 
international standards, reinforc ing competitive market conditions based on principles of openness, 
non-discrimination and transpare ncy and promot ing high levels of protection of human health, safety 
and the environment (Article 3 of Annex 11).  
3.95.  The Parties commit to not introduc e or maintain any domestic technical regulation, marking, 
or conformity assessment procedure diverging from relevant international standard s (Article 5 of 
Annex 11).  They shall accept products with a valid UN type -approval certificate as compliant with 
their domestic technical regulations, markings and conformity assessment procedures, without 
requiring any furth er testing or marking (Article 6 of Annex 11).  
3.96.  Neither Party shall refuse or restrict the access to its market of a product with new 
technologies or features approved by the exporting Party even if the importing Party has not yet 
regulated the new technolo gy or feature , unless it can demonstrate that it has reasonable grounds 
for believing that it creates a risk for human health, safety or the environment (Article 7 of 
Annex  11). 
3.97.  Article 8 of Annex 8 provides for cooperation while Article 9 establishes a Wo rking Group on 
Motor Vehicles and Parts.  
3.5.3   Medicinal products  
3.98.  Annex 1 2 to the Agreement includes disciplines specific to medicinal products as listed in 
Appendix 12 -C.40 The objectives of the Annex are  to facilitate the availability of medicines in each 
Party's territory , set out the conditions for the recognition of inspections and for the exchange and  
acceptance of official good manufacturing practice  documents and promote public health  (Article 3 
of Annex 12).  
 
36 Annex 38 to the Agreement contains a Protocol on access to waters.  
37 Annual consultations shall be held to agree on the total allowable catc h for stocks listed in Annex 35 
for the following year.  
38 Relevant EU laws can be found here: https://eur -
lex.europa.eu/summary/chapte r/maritime_affairs_and_fisheries.html?root_default=SUM_1_CODED=02   
39 The Annex applies to all categories of motor vehicles, equipment and parts thereof, as defined in 
Paragraph 1 of UNECE Consolidated Resolution on the Construction of Vehicles, falling und er, inter alia , 
Chapters 40, 84, 85, 87 and 94 of the HS 2017 (Article 2 of Annex 11).  
40 The Partnership Council has the power to amend  Appendices 12 -A, 12 -b and 12 -c (Article 11).  WT/REG447/1  
 
- 29 - 
 
  3.99.  The relevant standards for the products co vered by the Annex shall ensure a high level of 
protection of public health in line with standards, practices and guidelines developed by international 
organizations such as the WHO and the OECD (Article 4 of Annex 12).  
3.100.   A Party shall recognize  inspections carried out by the other Party and accept official  good 
manufacturing practice documents issued by the other Party in accordance with the laws, regulations 
and technical guidelines listed in Appendix 12 -B (Article 5 of Annex 12) .41 Each Party has the right  
to conduct its own inspection of manufacturing facilities that have been certified as compliant by the 
other Party (Article 7 of Annex 12) .  
3.101.   Each Party has the right to suspend totally or partially the recognition of inspections and 
acceptance of official  GMP documents of the other Party for all or some of the products listed in 
Appendix 12 -C (Article 9 of Annex 12).  
3.102.   Articles 6 and 8 of Annex 12 respectively provide for the exchange of official good 
manufacturing practice documents and the notification of changes to applicable laws and regulations. 
Article 10 of Annex 8 provides for regulatory cooperation while Article 12 establishes a Working 
Group on Medicinal Products.  
3.103.   Dispute settlement provisions of the Agreement  do not apply to disputes regarding the 
interpretation and application of Annex 12 (Article 13 of Annex 12).  
3.5.4   Chemicals  
3.104.   Annex 13  to the Agreement  applies to trade  and regulation of chemicals with the objective 
to facilitate trade, ensure high levels of protection for the environment , and human and animal 
health and provide for cooperation between the EU and the UK (Article s 2 and 3 of Annex 13).  
3.105.   The Parties commit to contribute to the development of the scientific or technical guidelines  
within international organization and bodies a nd to implement them (Article 5 of Annex  13).42 Each 
Party shall implement the UN Harmonized System of Classification and Labelling of Chemicals as 
comprehensively as it considers feasible within its respective system, including for chemicals that 
are not within the scope of Annex 13, except where there are specific reasons to apply a different 
labelling system (Article 6 of Annex 13).  
3.106.   Article 7 of Annex 13 provides for voluntary cooperation on the regulation of chemicals and, 
under Article 8, the Parties shall cooperate and exchange information with respect to any issue 
relevant for the implementation of the Annex.  
3.5.5   Organic products  
3.107.   Annex 14 to the Agreement sets out the provisions and procedures for fostering trade in 
organic products in accordance with th e principles of non -discrimination and reciprocity, by means 
of the recognition of equivalence by the Parties of their respective laws (Article 1 of Annex 14). The 
lists of organic products subject to the Annex are included in Appendices 14 -A and 14 -B. 
3.108.   The Parties recognise each other's laws and regulations  listed in Appendices 14 -C and 14 -D 
as equivalent  (Article  3 of Annex 14) . In view of the date of application of 1 January 2022 of 
Regulation (EU) 2018/848, the recognition of equivalence shall be reassessed by each Party by 31 
December 2023 (Article 3(3) of Annex 14).  In the event of the modification, revocation or 
replacement of such laws and regulations , the new rules shall be considered equivalent unless a 
Party objects in accordance with the pr ocedure set out in the Article.  
3.109.   A Party shall accept imports of the products listed in Appendices 14 -A or 14 -B provided that 
they comply with the laws and regulations listed in Appendices 14 -C or 14 -D and are accompanied 
 
41 In specific circumstances, an authority of a Party may not accept an offi cial good manufacturing 
practice document issued by an authority of the other Party.  
42 The Parties recognise that the OECD and the Sub -Committee of Experts on the Globally Harmonized 
System of Classification and Labelling of Chemicals (SCEGHS) of the Unite d Nations Economic and Social 
Council (ECOSOC), are relevant for developing scientific and technical guidelines with respect to chemicals 
(Article 4 of Annex 13).  WT/REG447/1   
 
- 30 - 
 
  by a certificate of inspection issu ed by a control body recognised by the other Party (Article 4 of 
Annex 14).  Imported products the territory of a Party shall meet the requirements for labelling set 
out in the laws and regulations of the importing Party listed in Appendices 14 -C and 14 -D (Article 5 
of Annex 14).  
3.110.   Articles 6 and 7 of Annex 14 respectively provide for exchange of information and peer 
reviews. Article 8 establishes a Working Group on Organic Products.  
3.5.6   Wine  
3.111.   Annex 15 to the Agreement applies to wine (HS Heading 22.04) and each Party shall 
authorise the importation and sale for consumption of wine produced in the other Party if it has been 
produced in accordance with the product definitions authorised in each Party and the oenological 
practices established under the laws and regulations referred to in Appendix 15 -A and oenological 
practices and restrictions established in each Party that are not in accordance with the relevant 
International Organisation of the Vine and Wine standards, listed in Appendix 15 -B (Article 1 and 2 
of Annex 15).  
3.112.   For wine produced in a Party and placed on the market of the other Party, the documentation 
and certification that may be required by either Party shall be limited to a certificate, as set out in 
Appendix 15 -C, authenticated  in conformity with the exporting Party 's laws and regulations (Article 
3 of Annex 15).  
3.113.   Labelling requirements related to food information and lot codes are included in Article 4 of 
Annex 15  while Articles 5, 6 and 7 provide for transitional measures, info rmation exchange and 
review.  
4  PROVISIONS ON TRADE IN SERVICES  AND INVESTMENT  
4.1.  Provisions on services and investment are contained in T itle II of Heading One of Part Two . 
While Chapter 1 of Title II contains general provisions, Chapters 2 and 3 cover, respect ively, 
investment liberalisation and cross -border trade in services, with non -conforming measures and 
exceptions in Annexes 19 and 20 to the Agreement. Chapter 4 contains disciplines on entry and 
temporary stay of natural persons for business purposes (com plemented by Annexes 21 through 
23); and Chapter 5 addresses the regulatory framework (complemented by Annex 24). Under 
Chapter 5, specific disciplines are established for: delivery services; telecommunications services; 
financial services; international m aritime transport services; and legal services.  
4.2.  Services issues are principally dealt with by the Trade Specialised Committee on Services, 
Investment and Digital Trade (Article 8 (f)) whose areas of competence extend also to digital trade, 
and capital movements.43 
4.1  Scope and definition  
4.3.  Chapter 2 of Title II of Heading One of Part Two, on investment44 liberalization, applies to 
measures of a Party affecting the establishment of an enterprise to perform economic activities and  
its operation by investors of the other Party; covered enterprises; and, with respect to rules on 
performance requirements45, any enterprise in the territory of a Party which adopts or maintain the 
measure (Article 127).  
4.4.  Chapter 3, on cross -border trade in services46, applies to measures of a Party affecting cross -
border trade in services by service suppliers of the other Party (Article 134).  
 
43 Moreover, a number of specialized committees are also established to address services -related 
aspects such as on Energy, (Article 8(l)); Air Transport (Article 8(m)); Aviation Safety (Article 8(n)); Road 
Transport (Article 8(o)); and Social Security Coordination (Article 8(p)). A Working Group on Social Security 
Coordination, under the supervisi on of the Specialised Committee on Social Security Coordination, is also 
established (Article 9(d)).  
44 "Investment" covers services provided under mode 3.  
45 Reference to Article 132.  
46 "Cross -border trade in services" corresponds to services provided under  modes 1 or 2.  WT/REG447/1  
 
- 31 - 
 
  4.5.  The provisions of Title II do not apply to: air transport services or related services in support 
of air services47 (other than aircraft repair and maintenance services; computer reservation system 
services; ground handling services; specialty air services48; and selling and marketing of air 
transports services); audio -visual services, national maritime cabotage; and inland waterways 
transport49 (Article 123) . These sectors  are regulated by specific provisions.50 Title II of Heading Two 
(services and investment) and Title III of Heading One (digital trade) of Part Two do not apply to 
audiovisual services (Articles 123 and 197 respectively).  
4.6.  Chapter 4 of Title II applies to measures of a Party affecting the performance of economic 
activities through the entry and temporary stay in its territory of selected categories of natural 
persons of the other Party (Article 140).  
4.7.  Like in the GATS, t he provisions of Title II do not apply to measures on public  procurement of 
a good or services , and to subsidies or grants , including government supported loans, guarantees 
and insurance , except for Article 132 which deals with performanc e requirement and prohibits the 
Parties from conditioning "the receipt or continued receipt of an advantage in connection with the 
establishment or operation of an enterprise in [their] territory".51 
4.8.  Disciplines on  Government procurement in services  are in Section 5.8 below and include 
exceptions to  the prohibition on the transfer of the source code in the case of public procurement, 
single information point for SMEs, exclusion of government procurement entities from the Chapter 
on state -owne d enterprises, enterprises granted with special rights or privileges and designated 
monopolies and Annex 25  on the Parties'  government procurement commitments.52 
4.9.   For subsidies for services, the specific disciplines are contained in Article 284 (effect of a 
subsidy on a government procurement tender) and Articles 363 to 375 (Chapter on subsidy 
control).53 
4.10.  Title II on services  and investment (Article 126) refers  to the review of the Agreement in 
Article 776  which  foresees a review five years after the entry into force of the Agreement and every 
five years thereafter. In terms of scope, the services  and investment  review includes the provisions 
of Title II itself, as well as the reserv ations for existing and future non -conforming measures and 
 
47 Defined as "Air services or related services in support of air services  which  include: air transportation; 
services provided by using an aircraft whose primary purpose is not the transportation of goods or passengers, 
such as aerial fire -fighting, flight training, sightseeing, spraying, surveying, mapping, photography, parachute 
jumping, glider towing, helicopter -lift for logging and construction, and other airborne agricultural, industrial 
and inspection services; the rental of aircraft wi th crew; and airport operation services" .  
48 Article 123.5(a) (iv) does not use the term general aviation but an enumeration of services  namely: 
"the following services provided using a manned aircraft, subject to compliance with the Parties' respective 
laws and regulations governing the admission of aircrafts to, departure from and operation within, their 
territory: aerial fire -fighting; flight training; spraying; surveying; mapping; photography; and other airborne 
agricultural, industrial and inspection s ervices" . 
49 In the situation ex ante  these four sectors (air transport services, audio -visual services, national 
maritime cabotage and inland waterways transport) were fully covered by the EU treaties and by the acquis 
and were fully liberalized inter se.  
50 For air transport, Articles 8(m) a nd 8(n) establish respectively specialised committees on air transport 
and aviation safety, Article 364.8 defines a subsidy to an air carrier, and other regulations are found in Articles 
417 to 458 (Heading Two of Part Two: aviation, Title I (air transport ) and Title II (aviation safety)), and 
Articles 543 to 562 (Part Three, Title III referring to the transfer and processing of Passenger Name Record 
data) (Section 4.7.1 below). Audio -visual services are also excluded from the digital trade Chapter (Article  
197), and from disciplines on non -discriminatory treatment and commercial consideration in the chapter on 
State -owned enterprises, enterprises granted with special rights or privileges and designated monopolies 
(Article 377.5) and subsidies for audio -visual services are excluded from the subsidy control Chapter (Article 
364.6) (Section 4.7.9 below). National maritime cabotage and inland waterways are excluded from disciplines 
on non -discriminatory treatment and commercial consideration in the chapter on St ate-owned enterprises, 
enterprises granted with special rights or privileges and designated monopolies (Article 377.5) (Sections 4.7.10 
and 4.7.11 below) .  
51 In the ex ante  situation government procurement in services was fully liberalized inter se , and 
subsidies/State aids were subject to disciplines enforced by the European Commission and the court of Justice 
on the basis of a delegation of sovereignty explicitly granted by the EU Treaties.  
52 See details in section 5.8  below.  
53 See details in section 4.6.3 below.  WT/REG447/1   
 
- 32 - 
 
  the list of activities for short term business visitors (Annex es 19, 20, and  21 to the Agreement ). 
Financial services are excluded f rom the scope of th e review.  
4.2  Denial of benefits  
4.11.  Article 125 provi des that a Party may deny the benefits of the provisions of the Agreement 
on services and investment (Title II of Heading One of Part Two) as well as on capital movements , 
payments and temporary safeguards measures (Title IV  of Heading One of Part Two) to  an investor 
or service supplier of the other Party, or to a covered enterprise, if the denying Party adopts or 
maintains measures for the maintenance of international peace and security, including the protection 
of human rights, which: (a) prohibit transa ctions with that investor, service supplier or covered 
enterprise; or (b) would be violated or circumvented if the benefits of Titles II and IV were accorded 
to that investor, service supplier or covered enterprise.  
4.3  General provisions on trade in services and investment  
4.12.  As a general principle, Article 123 of the Agreement affirm s the commitment of the Parties to 
establish a favourable climate for the development of trade and investment between them.  
4.13.  A "negative list" approach to scheduling commitments is u sed for investment in all economic 
sectors and cross -border trade in services. With regard to cross -border trade in services, market 
access, local presence, national treatment, and MFN treatment, Article 139 allows the Parties to 
maintain existing non -conforming measures in Annex 19 to the Agreement . For such measures a 
standstill provision precluding amendments that decrease the conformity of a non -conforming 
measure, as it existed immediately before the amendment, is incorporated into the Agreement. 
Article 139 also provides for the maintenance or adoption of new non -conforming measures in 
sectors, sub -sectors, or activities listed in Annex 20 to the Agreement . Non-conforming measures 
on investment are listed in Annexes 19 and 20 to the Agreement for the obligations on market 
access; national and MFN treatments, senior management and boards of directors ; and performance 
requirements, as provided for in Article 133.  Reservations in Annex 21 to the Agr eement cover 
existing and future non -conforming measures concerning business visitors for establishment 
purposes, intra -corporate transferees and short -term business visitors.  
4.3.1   Market access  
4.14.  The market access provision for investment liberalisation (Article  128) lists the same 
restrictions as in Article XVI (a) of the GATS while that for cross border trade (Article 135) omits 
references to restrictions on the participation of foreign capital and on the total number of persons 
that may be employed as these do  not apply to cross border trade and are only relevant for 
investment and for the movement of natural persons.  
4.15.  The market access obligations are subject to the non-conforming measures  in Annexes 19 
and 20 . 
4.16.  Market access for natural persons covered by Chapt er 4 is set out in point (b) of Article 141(1) 
and point (b) of Article 143(1).   
4.3.2   National treatment and MFN  
4.17.  Article 129 stipulates that each Party shall accord to investors of the other Party and to 
covered enterprises treatment no less favourable than tha t it accords, in like situations, to its own 
investors and to their enterprises, with respect to their establishment and operation in its territory. 
There are no provisions similar to Article XVII.2 and XVII.3 of the GATS. (so -called "national 
treatment de facto"). 
4.18.  In line with Article 133(3), Articles 129 and 130 do not apply to any measure that constitutes 
an exception to, or a derogation from, Article s 3 or 4 of the TRIPS Agreement, as specifically provided 
for in Articles 3 to 5 of that Agreement. For g reater certainty, Articles 129 and 130 shall not be 
construed as preventing a Party from prescribing information requirements, including for statistical 
purposes, in connection with the establishment or operation s of investors of the other Party or of WT/REG447/1  
 
- 33 - 
 
  covered enterprises, provided that it does not constitute a means to circumvent that Party's 
obligations under those Articles.  
4.19.  For cross border trade, under Article 137, each Party shall accord to services and service 
suppliers of the other Party treatment no less favourable than it accords, in like situations, to its 
own services and service suppliers. Paragraphs 2 to 4 of Article 137 replicate the provisions of 
Articles XVII.2 And XVII.3 of the GATS on "national treatment de facto" as well as its footnote ten  
on the absence of obligations to compensate an inherent competitive disadvantage which results 
from the foreign character of the relevant service or service supplier.  
4.20.  The obligations on national treatment are subject to non-conforming measures in Annexes 19 
and 20 . 
4.21.  The Chapter on the movement of natural persons contains provisions on national treatment 
for intra -corporate transferee and business visitors for establishment purposes (Article  141.1(c)), 
short term business visitors (Article 142.3); and contra ctual services suppliers and independent 
professionals (Article 143(c)). Non -conforming measures are listed in Annexes 19 (for existing 
measures) and 20 (for future measures). Those non -conforming measures apply to the movement 
of natural persons to the ex tent that the relevant measures affect the temporary stay (presence) of 
natural persons for business purposes.  
4.22.  Article 130 grants MFN treatment to investors both for establishment (paragraph 1) and 
operations (paragraph 2), and Article 138 for services and  service suppliers of the other Party, except 
for taxation and recognition agreements (including standards for licencing an enterprise to carry out 
certain activities and prudential measures). The obligations on MFN treatment are subject to the 
non-conform ing measures  in Annexes 19 and 20 . There are no MFN provisions for the movement of 
natural persons.  
4.3.3   Commercial (local) presence  
4.23.  For cross border trade , a Party shall not require a service supplier of the other Party to 
establish or maintain an enterprise o r to be resident in its territory as a condition for the cross -
border supply of a service  (Article 136) . The local presence obligations  are subject to the non -
conforming measures in Annexes 19 and 20.  
4.3.4   Performance requirements  
4.24.  With respect to investment, neither Party shall impose or enforce the types of performance 
requirements54, which are defined by paragraph 1(a) through 1(l) of Article 132 . The list of prohibited 
performance requirements  goes beyond the illustrative list of  measures in the WTO TRIMs 
Agreement (whose scope is limited to goods).  A Party shall neither impose nor enforce any measure 
inconsistent with its obligations under the TRIMs Agreement, even where subject to non -conforming 
measures in Annexes 19 or 20.   
4.25.  A Party shall not condition the receipt or continued receipt of an advantage, in connection 
with the establishment or operation of an enterprise in its territory, on compliance with: (a) a 
minimum level of domestic content; (b) preference for goods produced or services supplied in its 
territory, or the purchase of goods or services from natural or legal persons in its territory; (c) a 
ratio of volume or value of imports to the volume or value of exports or to the amount of foreign 
exchange inflows associated with an enterprise; (d) restrictions on the sales of goods or services in 
its territory that an enterprise produces or supplies by relating those sales in any way to the volume 
or value of its exports or foreign exchange inflows; or (e) restrictions on exp orts or sales for export. 
However, a Party may condition the receipt or continued receipt of an advantage, in connection with 
the establishment or operation of any enterprise in its territory, on compliance with a requirement 
to locate production, supply a  service, train or employ workers, construct or expand particular 
facilities, or carry out research and development, in its territory.  
 
54 In connection with the establishment or operation of any enterprise in a Party's territory.  WT/REG447/1   
 
- 34 - 
 
  4.26.  The obligations on performance requirement s are subject to the non -conforming measures in 
Annexes 19 and 20  to the Agreem ent.  
4.27.  Prohibitions on transfer of technology requirements and restrictions on royalty rates and 
durations of terms of existing and future licensing contracts (paragraphs 1(f) and 1(l) of Article 
132:1) do not apply where a Party authorises the use of an in tellectual property right in accordance 
with Article 31 or Article 31bis of the TRIPS Agreement or adopts or maintains measures requiring 
the disclosure of data or proprietary information that fall within the scope of, and are consistent 
with, paragraph 3 of Article 39 of the TRIPS Agreement . They also do not apply where the 
requirement is imposed or enforced, or the commitment or undertaking is enforced, by a court or 
administrative tribunal, or by a competition authority pursuant to a Party's competition law to 
prevent or remedy a restriction or a distortion of competition.  
4.28.  Reservations are also made with respect to certain qualification requirements for a good or 
service with respect to participation in export promotion and foreign aid program mes.  
4.3.5   Senior  managers and boards of directors  
4.29.  A Party shall not require that an enterprise of that Party, that is also a covered investment, 
appoints to senior management or board of director positions, natural persons of any particular 
nationality (Article 131). These obligations are subject to the non -conforming measures in Annexes 
19 and 20  to the Agreement .  
4.3.6   Movement of natural persons  
4.30.  The rules governing the entry and temporary stay of natural persons for business purposes 
are contained in Chapter 4 of Title II  of Heading One of Part Two . While requirements and procedures 
for immigration formalities55, as well as work and social security measures, including laws and 
regulations concerning minimum wage and collective wage agreements , remain within the sphere 
of comp etence of each Party, the Agreement establishes obligations regarding the m easures of a 
Party affecting the performance of economic activities through the entry and temporary stay in its 
territory of business visitors for establishment purposes, contractual service suppliers  (CSS) , 
independent professionals, intra -corporate transferees  (ICTs) , and short -term business visitors56 
from the other Party .  
4.31.  Article 141 governs the conditions for  the entry and temporary stay of ICTs and business 
visitors for establishment purposes without requiring a work permit or other similar prior approval; 
and the employment by a Party in its territory of ICTs of the other Party. The permissible length of 
stay shall be up to three years for managers and specialists, u p to one year for trainee employees 
and up to 90 days within any six -month period for business visitors for establishment purposes.  
4.32.  Conditional entry and temporary stay for short-term business visitors for the purposes of 
carrying out activities listed in Annex 21 is permitted  for up to 90 days in any six -month period  
(Article 142) . 
4.33.  The entry and temporary stay of CSS and independent professionals carrying out activities in 
the sectors, subsectors a nd activities in Annex 22 is permitted  for 12 months, or fo r the duration of 
the contact, whicheve r is less  (Article 143) . 
4.34.  A number of obligations on measures affecting the temporary stay of natural persons for 
business purposes are subject to non -conforming measures in Annexes 19 and 20  to the Agreement . 
 
55 Title II does not apply to measures affecting natural persons of a Party seeking access to the 
employment market of the oth er Party or to measures regarding nationality, citizenship, residence or 
employment on a permanent basis  (Article 123.3) . The Title shall not prevent a Party from applying measures 
to regulate the entry of natural persons into, or their temporary stay in, its territory, including measures 
necessary to protect the integrity of its borders and to ensure the orderly movement of natural persons across 
them, provided that such measures are not applied in such a manner as to nullify or impair the benefits 
accruin g to the other Party under the terms of Title  II. The sole fact of requiring a visa for natural persons of 
certain countries and not for those of others shall not be regarded as nullifying or impairing benefits under Title 
II (Article 123.4) . 
56 As defined in paragraph 5 of Article 140.  WT/REG447/1  
 
- 35 - 
 
  This is particularly the case for business visitors for establishment purposes or maintaining or 
adopting limitations for ICTs and CSS in the form of numerical quotas or economic needs tests, as 
well as granting national treatment; and granting national treatment for business visitors of a Party 
engaged in the supply of a service to a consumer in the territory of the Party where they are staying 
temporarily.  
4.35.  To the extent that commitments are not taken in Chapter 4, all requirements provided for in 
the law of a Par ty regarding the entry and temporary stay of natural persons shall continue to apply, 
including those  concerning the period of stay.  Entry and temporary stay -related procedural 
commitments, in the form of a list of good administrative practices, which the Parties shall endeavour 
to follow, are contained in Annex 23 to the Agreement.  
4.36.  Provisions on transparency requiring information on temporary entry to be made public are 
contained in Article  145.  
4.37.  Other non -trade specific provisions on related matters are a lso contained in the Agreement.57 
4.4  Liberalization commitments  
4.38.  The sections below compare the Parties' liberalization commitments under the Agreement 
with those  under the  GATS. Tables 4.1 and 4.2 summarize, sometimes in a rather broad manner, 
specific commitments under the Agreement, by sector and sub -sector and compare them with the 
GATS commitments. Improvements over existing GATS commitments include a reduction in marke t 
access and/or national treatment limitations, a relaxation of the form of establishment under mode 
3, and/or additional commitments and/or improved sectoral coverage. The Parties' horizontal 
limitations under the GATS and their reservations under the Agr eement that cover all sectors are 
not included in the tables but are addressed separately. Mode 4 commitments and limitations are, 
to a large extent, also excluded from the tables.  
4.39.  Under the Agreement, unlike under the GATS, the Parties' c ommitments on cro ss-border trade 
in services (Chapter 3 of Title II) and investment liberalization (Chapter 2 of Title II) are scheduled 
on a negative list basis so that obligations on (a) national treatment, (b) MFN treatment, (c) market 
access, (d) local presence (Chapte r 3 only), (e) performance requirements (Chapter 2 only) and (f) 
senior management and boards of directors (Chapter 2 only) apply to a sector, sub -sector or activity , 
unless otherwise specified in the Parties' existing and future non-conforming measures listed in 
Annexes 19 and 20, respectively , (Articles 133 and 139) . Reservations on national treatment and 
market access in these Annexes also apply to designated legal services58 (Article 195). The measures 
in the Annexes apply to c entral, regional and local levels of government, and to the Union level for 
the European Union.  
4.40.  For any existing non -conforming measure of a Party listed in Annex 19, a standstill and a 
ratchet mechanism apply. Under the standstill mechanism, the Parties c an maintain non -conforming 
measures that existed when the Agreement was signed, and which are listed in Annex 19, but cannot 
increase their restrictiveness. Under the ratchet mechanism, any modifications that decrease the 
restrictiveness of a non -conformin g measure, as it existed immediately before the modification, are 
automatically incorporated into the Agreement. There are no standstill or ratchet mechanisms for 
any future non -confirming measures listed in Annex 20. The Parties also clarify that the rese rvations 
in Annexes 19 and 20 are without prejudice to their rights and obligations under the GATS (GATS 
floor reservation). Overall, the level of trade in services and investment liberalization under the 
Agreement is higher in comparison to the Parties' c ommitments under the GATS. Compared to the 
 
57 The Agreement also addresses social security coordination (Part Two, Heading Four; Articles 488 
through 491) with the objective to coordinate social security systems in accordance with the Protocol on Social 
Security Coordi nation (attached to the Agreement). The Protocol applies to persons legally residing in an EU 
Member State or in the UK and to situations arising between one or more EU Member State and the UK. It 
applies without prejudice to the right of an EU Member Stat e or the UK to charge a health fee under national 
legislation in connection with an application for a permit to enter, stay, work, or reside in that State.  Distinct 
from the rights and obligations contained in the Agreement, the rights of EU and UK citizen s when the UK was 
still a member of the EU were grandfathered through the "Withdrawal Agreement" . EU and UK citizens arriving 
in the UK and the EU respectively after the end of the transition period must comply with immigration rules for 
third country nat ionals in force at that time in the UK and the EU.  
58 Designated legal services mean legal services in relation to home jurisdiction law and public 
international law, excluding Union law  (Article 193).  WT/REG447/1   
 
- 36 - 
 
  situation before the UK ceased to be a Member State of the EU, the Parties commitments under the 
Agreement are lower. In particular, while under the EU Treaty, all services and modes of supply 
were covered (see do cument WT/REG39/1), the Agreement excludes some sectors, while 
liberalization for others is subject to certain conditions.  
4.4.1   European Union  
4.4.1.1   MFN and horizontal commitments  
4.41.  In its GATS schedule, the EU has a broad reservation for public utilities59 at the national or 
local level. In addition, horizontal commitments by all or some individual EU Member States concern 
the type of establishment, investments and real estate purchases; other horizontal restrictions apply 
to mode 4. Similar reservations are listed un der the Agreement. S ectors generally considered as 
falling under the category of public services, such as health, education, and social services, also 
remain mainly reserved under the Agreement (as under the GATS).  
4.42.  Under the GATS, the EU has a number of MFN exemptions  including for  audio -visual services; 
a variety of transport services; news and press agency services and publishing; and financial 
services60. A number of MFN exemptions are also registered for all sectors and with respect to, inter 
alia, exis ting and future bilateral agreements either between certain EU Member States (Nordic 
countries , for instance) or between certain EU Member States and third parties.  
4.43.  Under the Agreement, MFN treatment commitments for investment liberalisation and for 
cross-border trade in services are referred to in Articles  130 and 138, respectively, while applicable 
MFN reservations are listed in Annexes 19 and 20. The EU as a whole lists existing MFN exemptions 
for statutory auditing services, rental or leasing of aircra ft without crew  (dry lease) , and computer 
reservation system (CRS) services, while individual EU Member States list other existing MFN 
exemptions for the provision of certain business services (professional services, real estate services, 
other business services), educational services, tourism and travel related services , and transport 
services (maritime and road transport services). Reservations on existing measures for the 
acquisition of land or real estate  are also made .  
4.44.  Future  non-conforming  measures may be taken , for instance, in air transport services, 
auxiliary services to inland waterways transportation, road and rail transport services, and  for 
preferential treatment under  any international investment treaties or other trade agreement in  force 
or signed prior to the entry into force of the Agreement ; and any existing or future bilateral or 
multilateral agreement that creates, inter alia , an internal market on services and investment, and, 
as under the GATS, cooperation initiatives between  certain EU Member States61 and between certain 
EU Member States and third -parties62. Other reservations for future measures that are MFN -related 
are registered by individual EU Member States and concern  legal services, health services, tourism 
and travel related services, transport services and services performed in connection with defence 
and national security.  
4.45.  Under the Agreement, the EU has also indicated broad reservations on the collection, 
purification and distribution of water; energy related activi ties; production, distribution or trade in 
arms, munitions and war material; fishing, aquaculture and services incidental to fishing, and for 
the provision of new services other than those classified in the United Nations Provisional Central 
Product Classi fication (CPC), 1991.  
 
59 In both its GATS schedule, and the Agreement (Reservation No. 1(a) in Annex 20), the EU clarifies 
that public utilities exist in sectors such as related scientific and technical consulting services, research and 
development (R&D) services inn social scien ces and humanities, technical testing and analysis services, 
environmental services, health services, transport services and services auxiliary to all modes of transport. The 
reservation does not apply to telecommunications and to computer and related serv ices. 
60 Based on the EU(12) list of MFN exemptions (in document GATS/EL/31, dated 15 April 1994). MFN 
exemptions have also been scheduled by the 17 countries which acceded to the EU since 1995.  
61 For instance, cooperation established between the Nordic cou ntries.  
62 For instance, cooperation between Portugal and Portuguese speaking third -parties.  WT/REG447/1  
 
- 37 - 
 
  4.4.1.2   Sector specific commitments  
4.46.   The following section identifies some of the main differences, by sector, between the EU's 
specific commitments under the GATS and its sector -specific commitments under the Agreement.  
4.47.  Under Annex 19 to the  Agreement on existing measures, the  EU lists 18 reservations that 
apply to, inter alia , business services, communication services, construction services, distribution 
services, education services, environmental services, financial services, health service s and social 
services, tourism and travel related services, recreational, cultural and sporting services, and 
transport services.  In Annex 20 to the Agreement on future measures, the EU registers 23 
reservations, including for agriculture, fishing and wate r, energy related activities and other services 
not included elsewhere.  
4.48.  The EU  commitments under the Agreement significantly improve  on its GATS commitments. 
A number of GATS reservations, essentially those by individual Member States, are withdrawn under 
the Agreement.  
4.49.  Table 4.1 follows the WTO Services Sectoral Classification63 and provides a comparison  of the 
EU's GATS specific commitments in modes 1 -3 with t hose taken under the Agreement. Horizontal 
limitations and MFN reservations are not taken into account in the table which should be read in 
conjunction with  Annex es 19 and 20  to the Agreement . There is also, as yet, no certified consolidated 
EU(27) list of  Specific Commitments, to take into account the latest EU commitments .  
Table 4.1: EU: comparison between the GATS and Agreement specific commitments  
Sectors  
Sub-sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  Future 
Measures  Existing 
Measures  Future 
Measures  
(Annex 19)  (Annex 20)  (Annex 19)  (Annex 20)  
1. Business services              
A. Professional  Services  Partial  Similar  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  … … … … 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  Partial  … 
D. Real  Estate  Services  Partial  Improved  Partial  Partial  Partial  … 
E. Rental/Leasing  Services  without  Operators  Partial  Improved  Partial  Partial  Partial  … 
F. Other  Business  Services  Partial  Similar  Partial  Partial  Partial  Partial  
2. Communication services              
A. Postal  services  … New Partial  … Partial  … 
B. Courier  services  Partial  Improved  Partial  … Partial  … 
C. Telecommunication  services  Partial  Improved  … Partial  … Partial  
D. Audiovisual  services  … Same  Excluded  Excluded  Excluded  Excluded  
E. Other  … Same  Excluded  Excluded  Excluded  Excluded  
3. Construction and related engineering 
services              
A. General  construction  work for buildings  Partial  Improved  Partial  Partial  Partial  Partial  
B. 
General  construction  work for civil engineering  Partial  Improved  Partial  Partial  Partial  Partial  
C. Installation  and assembly  work  Partial  Improved  Partial  Partial  Partial  Partial  
D. Building  completion  and finishing  work  Partial  Improved  Partial  Partial  Partial  Partial  
E. Other  Partial  Improved  Partial  Partial  Partial  Partial  
4. Distribution services              
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Wholesale  trade services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Improved  … Partial  … Partial  
E. Other  … Same  Excluded  Excluded  Excluded  Excluded  
5. Education services              
A. Primary education services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Secondary education services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Higher education services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Adult education  Partial  Improved  Partial  Partial  Partial  Partial  
E. Other education services  Partial  Improved  … Partial  … Partial  
6. Environmental services              
A. Sewage services  Partial  Improved  … Partial  … … 
 
63 The WTO Services Sectoral Classification (WTO document MTN.GNS/W/120) is based on the UN 
Central Product Classification (CPC) and comprises 12 sectors and 55 sub -sectors.  WT/REG447/1   
 
- 38 - 
 
  Sectors  
Sub-sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  Future 
Measures  Existing 
Measures  Future 
Measures  
(Annex 19)  (Annex 20)  (Annex 19)  (Annex 20)  
B. Refuse disposal services  Partial  Improved  Partial  Partial  … … 
C. Sanitation and similar services  Partial  Improved  … Partial  … … 
D. Other  Partial  Improved  Partial  Partial  … … 
7. Financial services              
A. All insurance  and insurance -related  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Other  … Same  Excluded  Excluded  Excluded  Excluded  
8. Health related and social services              
A. Hospital services  Partial  Similar  Partial  Partial  Partial  Partial  
B. Other Human Health Services  Partial  Similar  Partial  Partial  Partial  Partial  
C. Social Services  Partial  Similar  Partial  Partial  Partial  Partial  
D. Other  Partial  Improved  Partial  Partial  … Partial  
9. Tourism and travel related services              
A. Hotels  and restaurants (including catering)  Partial  Improved  Partial  … Partial  … 
B. Travel  agencies  and tour operators  services  Partial  Improved  Partial  … Partial  … 
C. Tourist  guides  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Other  Partial  Improved  … … … … 
10. Recreational and cultural and sporting 
services              
A. Entertainment  services  Partial  Similar  … Partial  … Partial  
B. News agency services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Libraries, archives, museums and other 
cultural services  Partial  Narrower  … Partial  … Partial  
D. Sporting and other recreational services  Partial  Similar  Partial  Partial  Partial  Partial  
E. Other  … Same  Excluded  Excluded  Excluded  Excluded  
11. Transport services              
A. Maritime Transport Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Internal Waterways Transport  Partial  Narrower  Excluded  Excluded  Excluded  Excluded  
C. Air  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Space  Transport  … Same  … Excluded  … Excluded  
E. Rail  Transport  Services  Partial  Similar  Partial  Partial  Partial  Partial  
F. Road Transport  Services  Partial  Similar  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  Partial  Improved  Partial  Partial  Partial  Partial  
H. Services  auxiliary  to all modes  of transport  Partial  Improved  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  Partial  Improved  … … … … 
12. Other services not included elsewhere  Partial  Improved  … Partial  … Partial  
General Note: MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Full:  Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
Partial:  Specific c ommitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
---:  No specific commitment (under GATS), or no specific reservation (under the Agreement).  
New:  New commitments (full or partial, with or  without limitations) which can, in most but not all cases, 
be seen as "improved".  
Improved:  Overall improved commitments made under the Agreement compared to those under the GATS.  
Narrower:  Some additional limitations (as compared to GATS commitments) .  
Similar:  Similar commitments; though possibly, in individual cases, with limited improvements and/or limited 
additional reservations.  
Excluded:  Sector or sub -sector excluded from the coverage, or full reservation (under the Agreement).  
Source:  The European Union's schedules annexed to the EU -UK TCA and the European Union GATS Schedule 
of Specific Commitments (GATS/SC/157), which does not cover the result of the 2007 and further 
EU enlargements.  
4.4.1.2.1   Business services64 
4.50.  In comparison to the G ATS, the EU has generally improved its commitments under the 
Agreement for business services.  
4.51.  In professional  services, the coverage under the Agreement is wider than under the EU's 
GATS Schedule . While a few reservations are made with respect to the EU a s a whole (for instance, 
 
64 The Parties agree on specific provisions with regards to legal services that are described further in this 
factual presentation.  WT/REG447/1  
 
- 39 - 
 
  in legal services, auditing services and health -related professional services65), individual EU Member 
States register several existing and future non -conforming measures  in this sub -sector .  
4.52.  In computer and related services , as an improvement over the GATS, there are no existing 
or future non -confirming measures.  
4.53.  In research and development services , the EU registers a broad " public utility" carve -out66 for 
R&D services in natural science and for interdisciplinary R &D services (CPC 851 and 853, 
respectively); otherwise, the sub -sector is largely liberalized with two reservation s on the cross -
border supply of R&D services.  
4.54.  For real estate services and for rental/leasing services  without operators , there are a few 
individual reservations; however, the commitments by EU Member States in this sub -sector are 
largely improved in comparison to the GATS.  
4.55.  In other business services , the scope of EU commitments under the Agreement is wider than 
under the GATS. The EU as a whol e lists reservations on the cross -border supply of statuary services , 
certification of ships, and broad reservations for services incidental to fishing and to energy 
distribution; other reservations are listed by individual EU Member States. In comparison to the 
GATS, no reservations are made  for advertising services; market research and public opinion polling 
services; management consulting services; maintenance and repair of equipment (not including 
maritime vessels, aircraft or other transport equipment) ; building -cleaning services; and packaging 
services . 
4.4.1.2.2   Communication services67 
4.56.  In comparison to the GATS, the EU undertakes new commitments in postal services and 
further improves its commitments for courier services by listing one existing non -conforming 
measure. Full commitments are made in telecommunication services, which is partly committed 
under the GATS, with a reservation only by Belgium on any measure related to satellite broadcast 
transmission services.  
4.57.  As in the GATS, audio -visual services are c arved -out from the application of Title II (Services 
and Investment) of Heading One (Trade)  of the Agreement.  
4.4.1.2.3   Construction and related engineering services  
4.58.  In comparison with the GATS, construction and related engineering services are largely 
liberalized by the EU under the Agreement, except for a few existing non -conforming measures listed 
by Cyprus (nationality requirement for the whole CPC 51), Bulgaria fo r construction work for civil 
engineering (CPC 5133), and the Slovak Republic and Finland for site preparation work for mining 
(CPC 51115). In addition, Lithuania reserves the right to adopt or maintain any measure with respect 
to construction services (CP C 51), while under the GATS only Mode 1 is unbound and Modes 2 and 
3 are fully liberalized.  
4.4.1.2.4   Distribution services  
4.59.  Though coverage under the Agreement is improved as compared to the GATS, a number of 
existing and future non -conforming measures remain for individual EU Member States  in most sub -
sectors. This is , in particular , the case for the distribution of chemical products (Bulgaria), precious 
metals and stones (Bulgaria), alcoholic beverages (Finland, Sweden, Bulgaria), tobacco products 
 
65 With the exception of the Netherlands and Sweden (Reservation No. 3(a), Annex 20).  
66 This reservation is without prejudice to Part Five of the Agreement (Participation in Union 
programmes, sound financial management and financial provisions) and to the exclusion of procurement by a 
Party or subsidies, in Article 123(6) and (7) of the Agreement (Reservation No. 4, Ann ex 19).  
67 The Parties agree on specific provisions for delivery and telecommunications services that are 
described further in this factual presentation.  WT/REG447/1   
 
- 40 - 
 
  (Spain, France, Austria, Italy, Bulgaria), pharmaceutical goods68, pyrotechnics (Lithuania) and some 
energy products.  
4.60.  Reservations for future measures, with exceptions, are listed for the supply of retail sales of 
pharmaceutical, medical and orthopaedic goods, other services provided by pharmacists (CPC 
63211), which mainly concern mail order for pharmaceutical goods and regulations of the number 
of suppliers to provide a particular service within the sub -sector, and for energy related activities.  
4.61.  A broad reservation for distribution of, or trade in, arms, munitions and war material  also 
applies.  
4.4.1.2.5   Education services  
4.62.  As in the GATS, where only privately funded education services are committed  subject to 
reservations by  EU Member States, under the Agreement, the sector is also covered only for privately 
funded education services69. Where the supply of privately funded educati on services by a foreign 
provider is permitted, participation by private operators in the education system may be subject to 
concession s allocated on a non -discriminatory basis.  As under the GATS, four EU Member States 
(Cyprus, Finland, Malta and Romania) fully reserve the supply of privately funded primary, higher, 
secondary, and adult education services (CPC 921, 923, 922 and 924, respectively).  
4.63.  Along with the overall improvement in EU commitments for education services, a series of 
specific  and general future reservations by EU Member States may be taken for primary, secondary, 
higher, and adult education services. The supply of privately funded other education services 
(CPC 929) is reserved by the EU with the exception of the Czech Republic , the Netherlands, Sweden 
and Slovak Republic , which could be seen as an improvement in comparison to the GATS. In addition, 
there is a range of market access and national treatment reservations pertaining to current 
measures.  
4.64.  The broad "public utilities"  market access reservation may also apply to education services.  
4.4.1.2.6   Environmental services  
4.65.  Under the Agreement, environmental services are to a largest extent liberalized with existing 
non-conforming measures affecting cross -border trade in services listed by  Sweden and Slovak 
Republic.  
4.66.  In addition, the EU as a whole reserves the right to adopt or maintain any measure  for services 
related to the collection, purification and distribution of water and water management.  
4.4.1.2.7   Financial services70 
4.67.  Building upon its GAT S commitments, the EU commitments under the Agreement are 
generally improved while certain limitations remain. In addition to specific reservations by EU 
Member States, the EU as a whole reserves the right to adopt or maintain any measure requiring a 
financial service supplier, other than a branch, when establishing in a Member State of the EU to 
adopt a specific legal form, on a non -discriminatory basis. Moreover, with respect to banking and 
other financial services, only legal persons having their registe red office in the EU can act as 
depositories of the assets of investment funds. The establishment of a specialised management 
company, having its head office and registered office in the same EU Member State, is required for 
the management of common funds,  including unit trusts, and, where allowed under national law, 
investment companies.  
 
68 Individual n on-confirming measures (existing and future) are listed by all EU Member States except 
Romania. S ome EU GATS commitments regarding the supply of pharmaceutical goods to the general public 
(pharmacists)  are listed under business services (item 1.A(j), Document (GATS/SC/157)).  
69 In this respect, for secondary, higher, adult, and other education services (CPC 922, 923, 924 and 
929, respectively). Croatia's GATS commitments (document GATS/SC/130) seem to be broader than under the 
Agreement.  
70 The Parties agree on specific provisions with regards to financial services that are described further in 
this factual presentation.  WT/REG447/1  
 
- 41 - 
 
  4.68.  In addition, an authorization  is required  to operate branches of a non -EU financial institution  
(paragraphs 14 and 13 respectively in Annexes 19 and 20) . 
4.4.1.2.8   Health related an d social services  
4.69.  In comparison to the GATS, the EU as a whole lists a broad reservation for the supply of all 
health and social services which receive public funding or State support, and for the supply of all 
privately funded health services, other than privately funded hospital, ambulance, and residential 
health facilit y services other than hospital services.  
4.70.  The supply of privately funded hospital, ambulance, residential health facilities services other 
than hospital services, and social services is su bject to concession s on a non -discriminatory basi s, 
along with  several reservations by individual EU Member States.  
4.71.  The broad "public utilities" market access reservation may also apply to some sub -sectors.  
4.4.1.2.9   Tourism and travel related services  
4.72.  Under the Agreement, the EU improves its overall commitments, while maintaining certain 
existing non -conforming measures in some EU Member States. For example, unlike its GATS 
commitments, Croatia lists an existing EEA or Swiss nationality requirement for hospit ality and 
catering services in households and rural homesteads (CPC 641, 642, 643, 7471, 7472).  
4.73.  In terms of future measures, there are two reservations for tourist guide services: France 
reserves the right to r equire EU Member State nationality for the sup ply of tourist guide services , 
while the reservation by Lithuania refers to MFN treatment.  
4.4.1.2.10   Recreational and cultural and sporting services  
4.74.  The sector is partially covered with limitations under the GATS; similar limitations are 
maintained in the Agreement.   
4.75.  As in the GATS, the EU as a whole  reserves the right to apply any measure to the supply of 
gambling and betting services (CPC 96492). The EU, with exceptions, also has future reservations 
for the supply of library, archive, museum and other cultural serv ices (CPC 963), and entertainment 
services, including theatre, live bands and circus services (CPC 9619, 964, other than 96492).  France 
and Hungary have individual reservations for the supply of news and press agency services (CPC 
962).  
4.4.1.2.11   Transport services71 
4.76.  Under the Agreement, national maritime cabotage72 and inland waterways transport are 
excluded from the application of Title II (Services and Investment) of Heading One (Trade). While 
there are a large number of existing and future specific reservations by EU Member States in most 
sub-sectors, the EU as a whole has broad future reservations for passenger and freight rail 
 
71 Specific provisions on international maritime services, aviation and road transport are described 
further in this factual presentation.  
72 Footnote to Article 123(5) clarifies that national maritime cabotage covers: for the EU, without 
prejudice to the scope of activities that may be considered cabotage under the relevant national legislation, 
transportation of passengers or goods between a port or point located in a Member State and another port or 
point located in that same Mem ber State, including on its continental shelf, as provided for in the United 
Nations Convention on the Law of the Sea and traffic originating and terminating in the same port or point 
located in a Member State; for the UK, transportation of passengers or g oods between a port or point located 
in the UK and another port or point located in the UK, including on its continental shelf, as provided for in the 
United Nations Convention on the Law of the Sea and traffic originating and terminating in the same port or 
point located in the UK.  WT/REG447/1   
 
- 42 - 
 
  transportation  (CPC 7111 and 7112, accordingly), and road transport services73. Existing EU 
measures are listed fo r customs clearance services, port services and ground handling services.  
4.77.  Like in the GATS, the EU lists a broad reservation for space transport, as well as for the supply 
of rental of space craft services (CPC 733 and part of 734, respectively). Energy s ervices,  including, 
inter alia , transportation of fuels (CPC 7131), fall under the EU reservation, with some exceptions.  
4.78.  The broad "public utilities" market access reservation may also apply to transport services.  
4.4.1.2.12   Other  services  not included elsewhere  
4.79.  In comparison to the GATS, the EU broadens the scope of its commitments, except for 
individual reservations by Finland, Germany, Portugal, Sweden, Cyprus and Slovenia on funeral, 
cremation and undertaking services (CPC 9703).  
4.80.  Under the Agreement, the EU reserves the right to adopt or maintain any measure with 
respect to the provision of new services other than those classified in the United Nations Provisional 
CPC, 1991.  
4.4.2    United Kingdom  
4.4.2.1   MFN and horizontal commitments  
4.81.  Under the  GATS, the UK has a broad reservation for services considered as public utilities at 
a national or local level, and for types of establishments; other horizontal restrictions apply to 
mode  4. Under both the Agreement  and the GATS, the UK has a horizontal " public utilities carve -
out"74 at the national or local level, for sectors generally considered as falling under the category of 
public services, such as health, education, and social services, which are, to a certain exten t, 
similarly reserved under the Ag reement  and the GATS. Moreover, under the Agreement, the UK has 
a future non -conforming measure for takeovers or mergers.  
4.82.  Under the GATS, the UK has taken a number of MFN exemptions in areas such as audio -visual 
services, a variety of transport services a nd financial services. There are a  number of MFN 
exemptions for all sectors and, inter alia , existing and future bilateral agreements with third -
parties .75 Under the Agreement, there are MFN treatment commitments for investment liberalisation 
and cross -border trade in services (Articles  130 and 138, respectively ), while applicable MFN 
reservations are listed in  Annexes 19 and 20 . In this respect, like in  the GATS, the UK lists a n existing 
MFN reservation on air transport services (rental or leasing of aircr aft without crew, CRS services).  
It also  has a number of non -conforming measures that may be taken in the future in areas such as 
business services related to aviation, air transport, and road and rail transport services. In a number 
of cases, MFN reservat ions are related to differential treatment that may be granted as a 
consequence of any international investment treaties or other trade agreement in force or signed 
prior to entry into force of the Agreement ; and any existing or future bilateral or multila teral 
agreement that creates, inter alia , an internal market on services and investment , or relates to 
financial services, ground -handling services or to fisheries, as well as, like in  the GATS, to the right 
of establishment for juridical and natural persons from Andorra, Monaco, San Marino and the Vatican 
City.  
 
73 Reservation No. 20(e) states that the EU reserves the right to adopt any measure with respect to 
cross-border trade in road transport services covered by Heading Three of Part Two and Annex 31 to the 
Agreement. The EU also reserves the right to limit the supply of cabotage within the EU Member State by 
foreign investors established in another EU Member State (CPC 712).  
74 In its GATS schedule, as under the Agreement (Reservation No. 1(a) in Annex 20), the UK clarifies 
that public utilities exist in sectors  such as related scientific and technical consulting services, research and 
development (R&D) services on social sciences and humanities, technical testing and analysis services, 
environmental services, health services, transport services and services auxi liary to all modes of transport. 
Exclusive rights in such services are often granted to private operators, for instance operators with concessions 
from public authorities, subject to specific service obligations. As under the GATS, this reservation does no t 
apply to telecommunications and to computer and related services.  
75 Document S/C/W/381.  WT/REG447/1  
 
- 43 - 
 
  4.83.  Under the Agreement, the UK also has broad reservations on the collection, purification, and 
distribution of water; energy re lated activities; production, distribution or trade in arms, munitions 
and war material; fishing, aquaculture and services incidental to fishing, and for the provision of 
new services other than those classified in the United Nations Provisional CPC, 1991.  
4.4.2.2   Sector specific commitments  
4.84.   The following section identifies some of the main differences, by sector, between the UK's 
specific commitments under the GATS and under the Agreement.  
4.85.  Under Annex 19 to the Agreement on existing measures, the UK lists 8 rese rvations that apply 
to, inter alia , professional services, research and development services, business services, 
communication services, transport services and services auxiliary to transport services, and on 
energy related activities .  
4.86.  In Annex 20 to the Agreement on future measures, the UK has 15 reservations,  including for  
the supply of professional services, business services, education services, financial services, health 
and social services, recreational, cultural and sporting services, transport serv ices and auxiliary 
transport services , fishing and water, energy related activities  and other services not included 
elsewhere.   
4.87.  Table 4.2 follows the WTO Services Sectoral Classification76 and provides a comparison  
between  the UK's GATS specific commitments in modes 1 -3 with those in the Agreement. Horizontal 
limitations and MFN reservations are not taken into account in the table which should be read in 
conjunction with  Annexes 19 and 20 . There is, as yet no certified UK Schedule of Specific 
Comm itments; the proposed draft has been circulated in WTO document series S/C/W/380 .  
Table 4.2: United Kingdom: comparison between the GATS and Agreement specific 
commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  Future 
Measures  Existing 
Measures  Future 
Measures  
(Annex 19)  (Annex 20)  (Annex 19)  (Annex 20)  
1. Business services              
A. Professional  Services  Partial  Similar  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Full Same  … … … … 
C. Research  and Development  Services  Partial  Similar  Partial  Partial  Partial  … 
D. Real  Estate  Services  Full Same  … … … … 
E. Rental/Leasing  Services  without  Operators  Partial  Similar  Partial  … Partial  … 
F. Other  Business  Services  Partial  Similar  Partial  Partial  Partial  Partial  
2. Communication services              
A. Postal  services  … New Partial  … Partial  … 
B. Courier  services  …  New Partial  … Partial  … 
C. Telecommunication  services  Partial  Improved  … … … … 
D. Audiovisual services  … Same  Excluded  Excluded  Excluded  Excluded  
E. Other  … Same  … Excluded  … Excluded  
3. Construction and related engineering 
services              
A. General  construction  work for buildings  Partial  Improved  … … … … 
B. General  construction  work for civil 
engineering  Partial  Improved  … … … … 
C. Installation  and assembly  work  Partial  Improved  … … … … 
 
76 Document MTN.GNS/W/120 as of 10 July 1991.  WT/REG447/1   
 
- 44 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  Future 
Measures  Existing 
Measures  Future 
Measures  
(Annex 19)  (Annex 20)  (Annex 19)  (Annex 20)  
D. Building  completion  and finishing  work  Partial  Improved  … … … … 
E. Other  Partial  Improved  … … … … 
4. Distribution services              
A. Commission  agents'  services  Partial  Improved  … Partial  … Partial  
B. Wholesale  trade services  Partial  Improved  … Partial  … Partial  
C. Retailing  services  Partial  Improved  … Partial  … Partial  
D. Franchising  Partial  Improved  … Partial  … Partial  
E. Other  … Same  … Excluded  … Excluded  
5. Education services              
A. Primary education services  Partial  Narrower  … Partial  Partial  Partial  
B. Secondary education services  Partial  Narrower  … Partial  Partial  Partial  
C. Higher education services  Partial  Narrower  … Partial  Partial  Partial  
D. Adult education  Partial  Narrower  … Partial  Partial  Partial  
E. Other education services  … Same  … Excluded  Partial  Excluded  
6. Environmental services              
A. Sewage services  Partial  Improved  … … … … 
B. Refuse disposal services  Partial  Improved  … … … … 
C. Sanitation and similar services  Partial  Improved  … … … … 
D. Other  Partial  Improved  … … … … 
7. Financial services              
A. All insurance  and insurance -
related  services  Partial  Similar  … Partial  … Partial  
B. Banking  and other  financial  services  Partial  Narrower  … Partial  … Partial  
C. Other  … Same  … Excluded  … Excluded  
8. Health related and social services              
A. Hospital services  Partial  Narrower  … Partial  Partial  Partial  
B. Other Human Health Services  … Same  … Excluded  … Excluded  
C. Social Services  Partial  Narrower  … Partial  Partial  Partial  
D. Other  … Same  … Excluded  … Excluded  
9. Tourism and travel related services              
A. Hotels  and restaurants (including catering)  Partial  Improved  … … … … 
B. Travel  agencies  and tour operators  services  Full Same  … … … … 
C. Tourist  guides  services  Full Same  … … … … 
D. Other  … Same  … Excluded  … Excluded  
10. Recreational and cultural and 
sporting services              
A. Entertainment  services  Partial  Same  … Partial  … Partial  
B. News agency services  Full Same  … … … … 
C. Libraries, archives, museums and other 
cultural services  … Same  … Excluded  … Excluded  
D. Sporting and other recreational services  Partial  Similar  … Partial  … Partial  
E. Other  … Same  … Excluded  … Excluded  WT/REG447/1  
 
- 45 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  Future 
Measures  Existing 
Measures  Future 
Measures  
(Annex 19)  (Annex 20)  (Annex 19)  (Annex 20)  
11. Transport services              
A. Maritime Transport Services  … New Partial  Partial  Partial  Partial  
B. Internal Waterways Transport  … Same  Excluded  Excluded  Excluded  Excluded  
C. Air  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Space  Transport  … Same  … Excluded  … Excluded  
E. Rail Transport  Services  Partial  Similar  Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Similar  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  … Improved  … Partial  … Partial  
H. Services  auxiliary  to all modes  of transport  Partial  Improved  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  Partial  Improved  … … … … 
12. Other services not included 
elsewhere  … Improved  … Partial  … Partial  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . 
Full:  Specific commitments not subject to limitation(s) under market access or national treatment, 
under any of the three modes.  
Partial:  Specific commitments subjec t to some limitation(s) under market access or national treatment, 
under any of the three modes.  
---:  No specific commitment (under GATS), or no specific reservation (under the Agreement).  
New:  New commitments (full or partial, with or without limitati ons) which can, in most but not all cases, 
be seen as "improved".  
Improved:   Overall improved commitments made under the Agreement compared to those under the GATS.  
Narrower:  Some additional limitations (as compared to GATS commitments).   
Similar:  Similar commitments; though possibly, in individual cases, with limited improvements and/or 
limited additional reservations.  
Excluded:  Sector or sub -sector excluded from the coverage, or full reservation (under the Agreement).  
Source:   The United Kingdom's schedules  annexed to the EU-UK TCA and the United Kingdom GATS Specific 
Commitments  (S/C/W/380 ). 
 
4.4.2.2.1   Business services77 
4.88.  In professional services , the UK improves commitments  in taxation services  and veterinary 
services . For health -related services provided by professionals (i.e. medical doctors, dentists, 
midwives, nurses, physiotherapists, paramedics, psychologists), the UK's reservations are similar to 
those in the GATS. The cross -border supply of auditing services rema ins reserved, and reciprocity is 
required in accounting and auditing services (CPC 8621).  
4.89.  The UK narrows its GATS commitments in legal services78 by introducing a residency 
(commercial presence) requirement and reserving the right to adopt or maintain any  measure on 
the supply of legal advisory and legal authori zation, documentation, and certification services 
provided by legal professionals entrusted with public functions, such as notaries, and for services 
provided by bailiffs (part of CPC 861, part of 8 7902).  
4.90.  The UK takes new commitments for R&D services in the natural sciences and interdisciplinary 
R&D services, subject to existing reservations, and, unlike its GATS commitments, reserves the right 
to adopt or maintain any measure with respect to service s suppliers not physically present in the UK 
 
77 The Parties agree on specific provisions with regards to legal services that are described further in this 
factual pres entation.  
78 Under the GATS, the UK fully liberalized services scheduled as "legal advice home country law and 
public international law".  WT/REG447/1   
 
- 46 - 
 
  that are engaged in research and experimental development services in cultural sciences, sociology 
and psychology (part of CPC 85201).  
4.91.  For other business services , in comparison to the GATS, the UK improves its commitments by 
not listing any reservations for services incidental to manufacturing, maintenance and repair of 
equipment (not including maritime vessels, aircraft or other transport equipment), building -cleaning 
services, photographic services, packaging services. The UK reiterates its GATS reservation for 
services incidental to energy distribution with the exception of advisory and consultancy services.  It 
also further liberalizes the supply of other business services except for a reservation for  cross-border 
trade in collection agency services and credit reporting services.  
4.92.  Unlike its GATS commitments, the UK reserves the right to require establishment or physical 
presence in its territory and prohibit the cross -border supply of maintenance and repair services for 
aircraft and parts thereof from outside its territory (Part of CPC 86764, CPC 86769). For services 
incidental to fishing, under the GATS the UK has fully liberalized advisory and consulting services 
related to fishing, while under the Agreement it lists a broad reservation in fishing, aquaculture and 
services incident al to fishing. Under the GATS, the UK has fully liberalised  related scientific and 
technical consulting services (CPC 8675)79, except for mode 1 for exploration services, and advisory 
and consulting services relating to mining. In comparison, under the Agr eement, a market access 
reservation is listed for investment liberalization and cross -border trade in services for energy related 
activities, mining and quarrying (ISIC Rev. 3.1 11, CPC 883, 8675).  
4.93.  The broad "public utilities" market access reservation may also apply to some sub -sectors in 
business services.  
4.4.2.2.2   Communication services80 
4.94.  The UK expands its GATS commitments in postal and courier services . In comparison to the 
GATS, the UK partially opens the sector, with certain limitations on the siting of lett er boxes on the 
public highway, the issuing of postage stamps and the provision of registered mail service s used in 
the course of judicial or administrative procedures , which may be restricted in accordance with 
national legislation. Postal operators may also be subject to particular universal service obligations 
or a financial contribution to a compensation fund.  
4.95.  The UK also fully liberalizes telecommunications services. Like in the GATS, it makes no 
commitments in audio -visual services as these are exclud ed from the coverage of Title II (Services 
and Investment) of the Agreement . 
4.4.2.2.3   Construction and related engineering services  
4.96.   Under the Agreement, the UK broadens its GATS commitments in construction and related 
engineering services by not listing any sector -specific existing or future measures.  
4.4.2.2.4   Distribution services  
4.97.   In distribution services, the UK broadens the scope of its GATS commitments by only 
maintaining  the reservation on the distribution of , and trade in , arms, munitions and war material. 
For retail sales of pharmaceutical, medical and orthopaedic goods, other services provided by 
pharmacists (CPC 63211), which are excluded from the UK 's GATS commitments, only mail order is 
possible from the UK, requiring  establishment in the UK. Cross-border retail sales of pharmaceuticals 
and medical and orthopaedic goods, and other services supplied by pharmacists81, remain "unbound" 
as under the GATS.  
 
79 Sub-sector "Related scientific and technical consulting services (CPC 8675)" is placed under "Other 
Professional Serv ices" in the UK's uncertified GATS schedule (document S/C/W/380).   
80 Specific provisions on delivery and telecommunications services are described further in this factual 
presentation.  
81 Sub-sector "Supply of pharmaceutical goods to the general public (pha rmacists)" is placed under 
"Other Professional Services" in the UK's uncertified GATS schedule (document S/C/W/380).   WT/REG447/1  
 
- 47 - 
 
  4.4.2.2.5   Education services  
4.98.  In education services, like in  the GATS, the UK l ists a broad reservation for public education 
services and other education services (CPC 929). Unlike its GATS commitments, the UK reserves the 
right to adopt or maintain any measure for the supply of privately funded education services by a 
foreign provid er: where the supply of such services is permitted, participation by private operators 
in the education system may be subject to the granting of a concession allocated on a non -
discriminatory basis.   
4.99.  In addition, the UK reserves the right to prohibit or im pose limitations on the ownership of, 
or the ability to , control equity interests in or the assets of an existing UK State enterprise or 
governmental entity providing, inter alia , education services (CPC 92) , as well as to adopt or 
maintain any measure rel ating to the nationality of senior management or members of the boards 
of directors, as well as any measure limiting the number of suppliers.  
4.100.   The broad "public utilities" market access reservation  may also apply to education services.  
4.4.2.2.6   Environmental service s 
4.101.   In comparison to the GATS, the UK full y liberalizes environmental services  by not listing any 
existing or future sector -specific reservations.  
4.102.   The UK reserves the right to adopt or maintain any measure on services related to the 
collection, purification and distribution of water  and water management . 
4.4.2.2.7   Financial services82 
4.103.   The UK replicates a number of its GATS reservations on the cross-border supply of financial 
services in accordance with the provisions of the WTO Understanding on Commitments in Financial 
Services. For example, for insurance and insurance -related services, it reserves the right to adopt 
or maintain any measure exc ept for direct insurance services (including co -insurance) and direct 
insurance intermediation for the insurance of risks relating, inter alia , to maritime transport, 
commercial aviation, space launching and freight (including satellites) and goods in inte rnational 
transit; reinsurance and retrocession; and services auxiliary to insurance.  
4.104.   In banking and other financial services, the UK removes its Mode 2 restriction on the lead 
management of securities denominated in domestic currency, and the establishme nt requirement 
for inter -dealer brokers. In comparison to the GATS, the UK's reservation for future measures 
requires the establishment of a specialized management company, with its head and registered 
offices in the UK to manage common funds, including un it trusts, and, where allowed under national 
law, investment companies. The reservation applies to investment liberalisation, as well as to cross -
border trade in services.  
4.4.2.2.8   Health related and social services  
4.105.    In health -related and social services, under th e GATS the UK has fully liberalized Modes 2 
and 3 for hospital services (CPC 9311) and for convalescent and rest houses, and old people's homes. 
Under the Agreement the UK  has a broad future reservation on investment in the supply of all health 
services83 and all social services which receive public funding or State support in any form. All 
privately funded health and social services are also reserved, except for hospital services and 
services relating to convalescent and rest houses and old people's homes.  The participation by 
private operators in the privately funded health or social network may be subject to concession s on 
a non -discriminatory basis and the application of an economic needs test  which could be seen as a 
narrower commitment in comparison to  the GATS.  
 
82 Specific provisions for financial services are described further in this factual presentation.  
83 Under Annex 20, Reservation No.10(a) by the UK applies to health services - hospital, ambulance, 
residential health services (CPC 931 other then 9312, part of  93191).  WT/REG447/1   
 
- 48 - 
 
  4.106.   The UK maintains its GATS reservation on the cross -border supply of health and social 
services and has a broad reservation for future measures for activities or services forming part of a 
public retirement plan or statutory system of social secu rity.  
4.107.   In addition, the UK reserves the right to prohibit or impose limitations on the ownership of, 
or the ability to control equity interests in , the assets of an existing UK State enterprise or 
governmental entity providing, inter alia , health and socia l services (CPC 93). In addition, it may 
adopt or maintain any measure relating to the nationality of senior management or members of the 
boards of directors, as well as to limit  the number of suppliers.  
4.108.   The broad "public utilities" market access reservati on may also apply to some sub -sectors 
in health related and social services.  
4.4.2.2.9   Tourism and travel  related services  
4.109.   In comparison to the GATS, the UK full y liberalizes tourism and travel -related  services  in the 
Agreement.  
4.4.2.2.10   Recreational and cultural and sporting services  
4.110.   In recreational, cultural and sporting services, the UK maintains its GATS reservation on the 
cross-border supply of entertainment services, including theatre, live bands, circus and discotheque 
services, and lists a broad reservation for  the supply of library, archive, museum and other cultural 
services (CPC 963), and gambling and betting services (CPC 96492).  
4.4.2.2.11   Transport services84 
4.111.   In comparison to the GATS, under the Agreement the UK expands its commitments in 
maritime, air and pipeline t ransport, and in services auxiliary to all modes of supply.  
4.112.   For water transport services,  like in the GATS, the UK makes no commitments in inland 
water transport and national maritime cabotage  services as these are excluded from the coverage 
of Title II ( services and investment) of the Agreement . For maritime transport services , which are 
not scheduled under its GATS commitments, the UK applies a nationality requirement for the crew 
on seagoing and non -seagoing vessels. It also has a reservation for registering a vessel and 
operating a fleet under the national flag with the exception of legal persons incorporated in the UK 
and having an effective and continuous link to its economy. For port services, the UK maintains the 
right to limit the number of providers for a given port service and an establishment requirement for 
maintenance and repair of internal waterways transport vessels and maritime vessels (CPC 8868). 
Pilotage and berthing services (CPC 7452) can only be provided by ships registered on the national 
registers of the UK, while pushing and towing services (CPC 7214) can only be supplied by vessels 
carrying the UK flag.  
4.113.   In comparison to the GATS, the scope of air transport services85 is improved a s the following 
services86 are covered by the Agreement: aerial firefighting , flight training , spraying , surveying , 
mapping , photography , and other airborne agricultural, industrial and inspection services . While the 
UK does not list any reservations for the se sub-sectors, the supply of ground -handling services  (CPC 
746) is under  a broad market access reservation limiting the number of supp liers in each airport 
depending on the size of the airport. For "big airports", this may not be less than two suppliers.  For 
air transport services,  the UK maintains its GATS  prohibition on the cross -border supply of 
maintenance and repair services of airc raft and parts thereof (CPC 8868). Reservations also continue 
to apply on cross -border trade in services and investment on sales and marketing, and computer 
reservation system (CRS) services.  
 
84 Specific provisions on international maritime services, aviation and road transport are described 
further in this factual presentation.  
85 The scope of application for air and related services in support of air services  is described in Section 4 
of this factual presentation.  
86 Provided that such services are using a manned aircraft, subject to compliance with the Parties' 
respective laws and regulations governing the admission of aircrafts to, departure from and operation within, 
their territory . WT/REG447/1  
 
- 49 - 
 
  4.114.   As under the GATS, space transport services  and the rental of sp ace craft (CPC 733, part of 
734) remain fully reserved.  
4.115.   In rail transport services, the UK maintains its GATS  prohibition o n the cross -border supply 
of maintenance and repair services of rail transport equipment (CPC 8868) and fully reserves the 
supply of railway passenger and freight transportation (CPC 7111 and 7112, accordingly). As an 
improvement to its GATS commitments, the UK liberalizes pushing and towing services.  
4.116.   In road transport  services, the UK broadens its GATS commitments with reservations. Like 
in the GATS, the UK reserves the right to adopt and maintain any measure on cross-border trade in 
road transport services (CPC 712). For road transport services not covered by the specific provisions 
of Heading III (Road Transport) of Part Two (Trade, T ransport, Fisheries and other arrangements) 
and Annex 31 (Transport of Goods by Road) to the Agreement87, the UK broadens the scope of the 
covered sub -sectors  in with an establishment requirement for the whole sub -sector (CPC 712) and, 
as under the GATS, a n economic needs test requirement for taxi services providers (CPC 71221).  
4.117.   In pipeline transport , under the Agreement the UK lists a broad reservation for energy 
related activities, inter alia , for CPC 7131, reserv ing the right to adopt or maintain any measure, on 
foreign ownership of a gas or electricity transmission system, or an oil and gas pipeline transport 
system, in EU enterprises controlled by natural persons or enterprises of a third country which 
accounts for  more than 5 % of the UK's oil, natural gas or electricity imports, in order to guarantee 
security of its energy supply.88 With respect to transportation of other goods, the UK does not list 
any non -conforming measures which could be seen as an overall impr ovement of its GATS 
commitments.  
4.118.   In services auxiliary to all modes of transport , as in the GATS, services relating to the use 
of temporary storage facilities or customs warehouses may only be provided by persons established 
in the UK . The same reservatio n applies to customs services, including customs clearance services. 
The supply of services auxiliary to inland waterways transportation is fully reserved.  
4.119.   For other transport services , the UK does not list any specific reservations for land transport 
(provision of combined transport services), which is an improvement over its GATS commitment.  
4.120.   The broad "public utilities" market access reservation  may also apply to transport services.  
4.4.2.2.12   Other  services  not included elsewhere  
4.121.   Under  the Agreement, the UK  reserve s the right to adopt or maintain any measure for the 
provision of new services other than those classified in the United Nations Provisional CPC, 1991.  In 
comparison to the GATS, it is an overall improvement of the UK's commitments for the following 
sector s: services of membership organizations (CPC 95), other services (CPC 97), private households 
with employed persons (CPC 98), and services provided by extraterritorial organizations and bodies 
(CPC 99).  
4.5  Regulatory provisions  
4.122.   The rules governing the regul atory framework are contained in Chapter 5 of Title II of 
Heading One of Part Two. The Chapter is divided into seven sections: Section 1 covers domestic 
regulation; Section 2 contains provisions of general application; while specific disciplines applicable  
to certain sectors or sub -sectors are in, respectively, Sections 3 (delivery services); 
4 (telecommunication services); 5 (financial services); 6 (international maritime transport services); 
and 7 (legal services). While Sections 1 and 2 are covered immed iately below, the specific sectoral 
 
87 Heading III of Part Two of the Agreement applies to (i) the transport of goods by road with a 
commercial purpose between, through and within the territories of the Parties (Article 460), and (ii) the 
occasional, regular and special regular transport of passengers by coach and bus between, through and within 
the territories of the Parties (Article 473). Annex 31 to the Agreement stipulates, inter alia , requirements for 
road haulage operator s. 
88 This reservation does not apply to advisory and consultancy services provided as services incidental 
to energy distribution.  WT/REG447/1   
 
- 50 - 
 
  disciplines are described later in this factual presentation, under section 4.7 (sector specific 
provisions on trade in services).  
4.5.1   Domestic regulation  
4.123.   Specific rules governing domestic regulation are contained in Chapte r 5 of Title II , Sections 
1 (domestic regulations) and 2 (provisions of general application) of Heading One of Part Two . They 
apply to measures adopted or maintained by a Party relating to licensing and qualification 
requirements and procedures, formalitie s and technical standards89 that affect cross -border trade in 
services, establishment or operation, or the supply of a service through mode four. Some exceptions 
to that coverage are contained in paragraph 2 of Article 146.  Article 123.2 also grants the Parties 
the right to regulate, within their territories, in order to achieve legitimate policy objectives, such 
as: the protection of public health ; social services; public education; safety; the environment, 
including climate change; public morals; social or consumer protection; privacy and data protection 
or the promotion and protection of cultural diversity.  
4.124.   Section 1 of Chapter 5 establishes rul es and procedures on the submission of applications 
for and granting of authorisations of licenses (Articles 147 -156); In Section 2 of Chapter 5, the 
provisions of general application are particularly relevant in the context of domestic regulations for 
review procedures for administrative decisions (Article 157); and the recognition of professional 
qualifications (Article 158, complemented by Annex 24).  
4.5.2   Recognition  
4.125.   The Trade and Cooperation Agreement includes a framework in Article 158 whereby the 
European Union and the United Kingdom may later agree, on a case -by-case basis and for specific 
professions, additional arrangements for the recognition of certain professional qualifications, which 
would become an annex to the Agreement itself.   
4.126.   However, Article 158 refers to mechanisms allowing for the recognition of professional 
qualifications. Professional bodies or authorities may develop and provide joint recommendations in 
their relevant sectors90 on the recognition of professional qualifications to the Partnership Council. 
On receipt of a joint recommendation, the Partnership Council undertakes a consistency review 
within a reasonable period of time. It may, following the review, develop and adopt an arrangement 
on the conditions for the recognition of professional qualifications acquired in the EU and in the UK 
relating to an activity covered by Titles II and III of Heading One of Part Two. The Guidelines for 
arrangements on the recognition of professional qualifications in Annex 24 to the Agreement shall 
be taken into account in the development of the joint recommendations and by the Partnership 
Council when assessing whether to adopt such an arrangement.  
4.127.   Nothing in Article 158 (professional qualifications) prevents a Party from requiring that 
natura l persons possess the necessary professional qualifications specified in the territory where the 
activity is performed, for the sector of activity concerned. For greater certainty, such arrangements 
shall not lead to the automatic recognition of qualificat ions but shall set, in the mutual interest of 
both Parties, the conditions for the competent authorities granting recognition.  
4.5.3   Subsidies  
4.128.   Chapter 3 of Title XI (level playing field for open and fair competition and sustainable 
development) of Heading One o f Part Two addresses  subsidy control and is applicable to trade in 
services and investment. It applies to both  subsidies affecting trade  in goods and  services  (Article 
366) The definition of subsidies as well as the rules on prohibited subsidies; subsidies  subject to 
conditions; subsidies for rescue and restructuring; export subsidies; as well as transparency, 
consultation, cooperation, dispute settlement, recovery and remedial measures are  applied similar ly 
 
89 For the purposes of Section 1 of Chapter 5, the term "technical standards" does not include regulatory 
or implementing technical standards for financial services.  
90 Such joint r ecommendations shall be supported by an evidence -based assessment of: the economic 
value of an envisaged arrangement on the recognition of professional qualifications; and the compatibility of 
the respective regimes, that is, the extent to which the requir ements applied by each Party for the 
authorisation, licensing, operation and certification are compatible.  WT/REG447/1  
 
- 51 - 
 
  for trade in goods and trade in services.91 Moreo ver, the audiovisual sector is excluded from the 
coverage of Chapter 3 (subsidy control) of Title XI of Heading One of Part Two (Article 377 ). 
4.129.   Specific disciplines are applicable for subsidies to restructure banks, credit institutions and 
insurance compani es, including conditions for the establishment of a credible restructuring plan that 
restores long -term viability (Article 367, paragraphs 6 and 7).  
4.130.   With respect to large cross -border or international cooperation projects, subsidies may be 
conditionally g ranted in sectors such as transport, energy, the environment, research and 
development, and first deployment projects to incentivise the emergence and deployment of new 
technologies (excluding manufacturing) (Article 367, paragraph 13). Moreover, without p rejudice to 
these disciplines, subsidies for energy and the environment shall be aimed at, and incentivise the 
beneficiary in delivering a secure, affordable and sustainable energy system and a well -functioning 
and competitive energy market or increasing t he level of environmental protection compared to the 
level that would be achieved in the absence of the subsidy. Such subsidies shall not relieve the 
beneficiary from liabilities arising from its responsibilities as a polluter under the law of the relevant  
Party (Article 367, paragraph 14).  
4.131.   Specific rules are applicable for air carriers for the operation of routes. In particular, subsidies 
shall not be granted to an air carrier for the operation of routes except where there is a public service 
obligation ( in accordance with Article 365); in special cases where this funding provides benefits for 
society at large; or as start -up subsidies for opening new routes to regional airports provided that 
such subsidies increase the mobility of citizens and stimulate r egional development.92 
4.132.   The Trade Specialised Committee on Level Playing Field for Open and Fair Competition and 
Sustainable Development is established to monitor Chapter 3.  
4.133.   Chapter 4 of Title XI93, which governs state -owned enterprises, enterprises grante d special 
rights or privileges and designated monopolies, applying to covered entities, at all levels of 
government, engaged in commercial activities94, is also applicable to trade in services and 
investment, with some limitations concerning the supply of financial services and the provision of 
audio -visual services, national maritime cabotage, and inland waterways transport  (Section 5.1 2 
below).  
4.5.4   Safeguards  
4.134.   The possibility of imposing restrictive measures on capital movements, payments, or 
transfe rs in relation to trade in services in order to safeguard a Party's balance -of-payments or 
external financial position is addressed in Article 218. Such measures shall be consistent with the 
Articles of Agreement of the International Monetary Fund and in a ccordance with Article XII of GATS. 
They shall not exceed those necessary to deal with the circumstances; be temporary and be phased 
out progressively as the situation improves; avoid unnecessary damage to the commercial, economic 
and financial interests o f the other Party; and be non -discriminatory compared with third countries 
in like situations. Article 218 also contains provisions on transparency and consultation, which may 
take place in the Trade Specialised Committee on Services, Investment and Digita l Trade unless 
they are held in other fora. All relevant findings of a statistical or factual nature presented by the 
IMF, where available, shall be accepted and conclusions shall take into account the assessment by 
the IMF of the balance of payments and t he external financial situation of the Party concerned (Article 
218).  
4.135.   In exceptional circumstances o r serious difficulties in the operation of the EU's economic and 
monetary union, or threat thereof, the EU may adopt or maintain safeguard measures  on capital 
movements, payments or transfers for a period not exceeding six months. Such measures shall be 
limited to the extent that is strictly necessary (Article 217).  
 
91 For the elements applicable to trade in goods, see 3.5.4 above.  
92 This is without prejudice to Article 364.1, and 364.2 (exceptions to the scope).  
93 Part Two, Heading One of the Agreement.  
94 Except services supplied in the exercise of governmental authority.  WT/REG447/1   
 
- 52 - 
 
  4.6  Sector specific provisions on trade in services  
4.6.1    Legal services95 
4.136.   Section 7 of Chapter 5 of T itle II (Heading One of Part Two) sets out specific disciplines 
applicable to measures of a Party affecting the supply of certain designated legal services, in addition 
to rules related to the regulatory framework in Chapters 1 -4 of Title II, and rules in Sections 1 and 
2 of Chapter 5. The Parties maintain their right to regulate and supervise the supply of designated 
legal services in their territories in a non -discriminatory manner (Article 192). In addition, 
nonconforming measures in Annexes 19 and 20 co ntinue to apply.  
4.137.   A Party shall allow a lawyer of the other Party to supply in its territory designated legal 
services which include services related to the service provider's home jurisdiction and public 
international law excluding EU law96 under that lawyer's home jurisdiction professional title, in 
accordance with the rules governing market access, national treatment, and contractual service 
suppliers and independent professionals.  
4.138.   Where registration is required as a condition for a lawye r of a Party to supply designated 
legal services in the other Party, the requirements and process for such registration shall not: (a) 
be less favourable than those which apply to a natural person of a third country who is supplying 
legal services in relat ion to third country law or public international law under that person's third 
country professional title in the territory of the host jurisdiction; and (b) amount to or be equivalent 
to any requirement to requalify for or be admitted to the legal professi on of the host jurisdiction.  
4.139.   With respect to the supply of legal services through establishment, a Party shall allow a legal 
person of the other Party to establish a branch in its territory through which designated legal services 
are supplied in accordanc e with and subject to the conditions set out in Chapter 2 of Title II 
(investment liberalisation). This shall be without prejudice to requirements that a certain percentage 
of the shareholders, owners, partners, or directors of a legal person be qualified or practice a certain 
profession, such as lawyers or accountants.  
4.6.2   Computer services  
4.140.   Title III of Heading One of Part Two (on digital trade), contains the Parties' understanding 
on computer services. For the purpose of liberalising trade in services and inv estment in accordance 
with Title II of Heading One of Part Two, Article 2 12 lists the services which shall be considered as 
computer and related services, regardless of whether they are delivered via a network, including the 
internet.97 Services enabled by  computer and related services, other than those listed, shall not be 
regarded as computer and related services in themselves.  In addition, non -conforming measures in 
Annexes 19 and 20 continue to apply.  
 
95 Under the Agreement, legal services means legal advisory services, and legal arbitration, conciliation 
and mediation services (but excluding s uch services when supplied by natural persons as set out in Article 
140). Legal services do not include legal representation before administrative agencies, the courts, and other  
duly constituted official tribunals of a Party, legal advisory and legal auth orisation, documentation and 
certification services supplied by legal professionals entrusted with public functions in the administration of 
justice such as notaries, "huissiers de justice" or other "officiers publics et ministériels", and services supplie d 
by bailiffs who are appointed by an official act of government.  
96 For greater certainty, for the purposes of this obligation, designated legal services means, for services 
supplied in the EU, legal services in relation to the law of the UK or any part of  it and public international law 
(excluding EU law), and for services supplied in the UK, legal services in relation to the law of the EU member 
States (including EU law) and public international law (excluding EU law).  
97 This list includes: consulting, ad aptation, strategy, analysis, planning, specification, design, 
development, installation, implementation, integration, testing, debugging, updating, support, technical 
assistance or management of or for computers or computer systems; computer programmes de fined as the 
sets of instructions required to make computers work and communicate (in and of themselves), as well as 
consulting, strategy, analysis, planning, specification, design, development, installation, implementation, 
integration, testing, debugging , updating, adaptation, maintenance, support, technical assistance, 
management or use of or for computer programmes; data processing, data storage, data hosting or database 
services; maintenance and repair services for office machinery and equipment, inclu ding computers; and 
training services for staff of clients, related to computer programmes, computers or computer systems, and not 
elsewhere classified.  WT/REG447/1  
 
- 53 - 
 
  4.6.3   Delivery services98 
4.141.   In Section 3 of Chapter 5 (regul atory framework) of Title II (Heading One of Part Two), the 
Agreement sets out specific disciplines applicable to the supply of delivery services, and the 
regulatory framework in Chapters 1 -4 of Title II (covering, respectively, general provisions; 
investm ent liberalisation; cross -border trade in services, and entry and temporary stay of natural 
persons for business purposes), and rules in Sections 1 and 2 of Chapter 5 (domestic regulation and 
provisions of general application). These provisions are in addi tion to the non -conforming measures 
in Annexes 19 and 20 to the Agreement.  
4.142.   The Parties assume obligations to ensure that: (i) universal service is administered in a 
transparent, non -discriminatory and neutral manner, and certain rules apply regarding the funding 
of universal service (Articles 160 and 161); (ii) suppliers of delivery services subject to a universal 
service obligation or a postal monopoly do not engage in market distortive practices (Article 162); 
(iii) licensing requirements and procedures are publicly available, transparent, non -discriminatory 
and based on objective criteria (Article 163); and (iv) the regulatory body is legally distinct from 
and functionally independent from any supplier of delivery services (Article 164).  
4.6.4   Telecommunicatio n Services99 
4.143.   Section 4 of Chapter 5 of Title II (Heading One of Part Two) sets out specific disciplines for 
measures of a Party affecting the supply of telecommunications services, and the regulatory 
framework in Chapters 1 -4 of Title II, and rules in Sect ions 1 and 2 of Chapter 5. In addition, non -
conforming measures in Annexes 19 and 20 continue to apply.  
4.144.   While Article 167 describes the functions, tasks (to be made public in an easily accessible 
and clear form), and procedural guidelines for the telecommunications regulatory authorities that 
the Parties shall establish or maintain, including  amongst others  ensuring the effective structural 
separation of the regulatory function from ownership or control100, under Article 168 no formal 
authorization is required to provide telecommunications networks or services. Article 168 also 
requires the Parties to make pub licly available the criteria, applicable procedures and terms and 
conditions (which shall be as simple as possible, objective, transparent, non -discriminatory and 
proportionate) under which services may be provided.  
4.145.   The rules on telecommunication services  replicate many provisions of the GATS Annex on 
Telecommunications and the Reference Paper (RP) commitments on telecom regulatory principles. 
The provisions included in the Agreement, cover access to and use of basic telecoms (Article 170 ); 
while the RP -related provisions cover competitive safeguards on major suppliers (Article 172); 
interconnection, with major suppliers (Article 173); allocation of scarce resources, e.g., spectrum, 
(Article 175); and universal services (Article 176). In some instances, the  Agreement builds further 
upon some of the GATS Annex and RP rules such as amending the provisions on interconnection to 
include a general right for all operators to negotiate interconnection  (Article 169) and extending the 
interconnection obligations with  dominant suppliers to cover unbundling, meaning  a supplier may 
access parts of a major supplier 's network and only pay for those parts it uses (Article 173 (b)). In 
addition, the scope of the rules on telecommunication services in the TCA is wider. The Re ference 
Paper only covers "basic telecommunications services " and the GATS Annex only "public " 
telecommunications services. In the Agreement , these provisions cover all telecommunications 
services, including non -public/private telecommunications services, as well as value -added 
telecommunications services.  
 
98 Under the Agreement, delivery services means postal services, courier services, express delivery 
services or express mail services, which include the following activities: the collection, sorting, transport, and 
delivery of postal items . 
99 Under the Agreement, telecommunications service means a service which consists wholly or mainly in 
the transmission a nd reception of signals, including broadcasting signals, over telecommunications networks, 
including those used for broadcasting, but not a service providing, or exercising editorial control over, content 
transmitted using telecommunications networks and t elecommunications services.  
100 A Party that retains ownership or control of suppliers of telecommunications networks or 
telecommunications services shall ensure the effective structural separation of the regulatory function from 
activities associated with o wnership or control. Moreover, users or suppliers of telecommunications networks or 
services affected by a decision of the authority shall have a right of appeal before a body which is independent 
of the regulatory one.  WT/REG447/1   
 
- 54 - 
 
  4.146.   In addition, Article 167 provides that regulators must have adequate enforcement powers 
to implement the Agreement's obligations and Article 171 expand the right of suppliers of 
telecommunications networ ks or telecommunications services resort to dispute resolution for 
disagreements among themselves beyond interconnection disputes (covered by the RP) to disputes 
of any nature. The Agreement also builds further upon licensing disciplines in the GATS Annex and 
RP by specifying that the partners should not require pre -authorization (Article 168)101; and should 
use simple and transparent authorization procedures whose charges are based on administrative 
costs. Article 179 also strengthens and expands the rules regarding confidentiality and confidential 
treatment of information that are found, in part, in the GATS Telecom Annex.  
4.147.   New regulatory matters, not explicitly addressed in GATS rules, are also found in the 
Agreement. For example, in Article 177, the Agree ment includes obligations for Parties to ensure 
that suppliers of public telecommunications services provide number portability on reasonable terms 
and conditions. Article 180 prohibits joint venture requirements and restrictions on the participation 
of foreign capital in telecommunications services. Article 181 aims at ensuring cooperation on 
promoting transparent and reasonable rates for international mobile roaming between Parties be 
transparent and reasonable. Provisions on open Internet access (Article  178) require that users, 
defined as both consumers and service suppliers, be allowed to access an d distribute content subject 
to non -discriminatory, reasonable, transparent and proportionate network management and allows 
the use of access devices of their  choice, provided they do not compromise the security of the 
network or of other devices and services.  
4.6.5   Financial services102 
4.148.   Section 5 of Chapter 5 of Title II (Heading One of Part Two) sets out specific disciplines 
applicable to measures of a Party affecting the supply of financial services, and the regulatory 
framework in Chapters 1 -4 of Title II, and rules in Sections 1 and 2  of Chapter 5. In addition, non -
conforming measures in Annexes 19 and 20 continue to apply.  
4.149.   Article 184 replicates the prudential carve -out of the GATS and reaffirms the right of a Party 
to adopt or maintain reasonable measures for prudential reasons.  The Agreement contains 
provisions on the protection of confidential information (Article 185); and a best endeavour 
commitment to ensure that internationally agreed standards in the sector for regulation and 
supervision103, against money laundering and terrori st financing and against tax evasion and 
avoidance, are implemented and applied in their territories (Article 186).  
4.150.   National treatment is granted for the establishment of a financial service supplier of the 
other Party to supply any new financial service,  provided that its introduction does not require the 
adoption of a new law or the amendment of an existing law104 (Article 187). Where a Party requires 
membership of, participation in, or access to, any self -regulatory organisation in order for financial 
service suppliers of the other Party to supply financial services in its territory, it shall ensure 
observance by that self -regulatory organisation of the obligations on national and MFN treatment105 
(Article 188). Moreover, under terms and conditions that ac cord national treatment, each Party shall 
grant to financial service suppliers of the other Party established in its territory access to payment 
and clearing systems operated by public entities, and to official funding and refinancing facilities 
 
101 A similar provision appears in the  digital trade section of the Agreement.  
102 The definition of financial services under the Agreement is as in the WTO Annex on financial services. 
It also defines a new financial service as a service of a financial nature including services related to exist ing 
and new products or the manner in which a product is delivered, that is not supplied by any financial service 
supplier in the territory of a Party but which is supplied in the territory of the other Party; as well as a self -
regulatory organisation as a ny non -governmental body, including a securities or futures exchange or market, 
clearing agency, other organisation or association, that exercises regulatory or supervisory authority over 
financial service suppliers by statute or delegation from central, r egional or local governments or authorities, 
where applicable.  
103 Such internationally agreed standards are, inter alia, those adopted by: the G20; the Financial 
Stability Board; the Basel Committee on Banking Supervision, in particular its "Core Principle for Effective 
Banking Supervision"; the International Association of Insurance Supervisors, in particular its "Insurance Core 
Principles"; the International Organisation of Securities Commissions, in particular its "Objectives and Principles 
of Securities Regulation"; the Financial Action Task Force; and the Global Forum on Transparency and 
Exchange of Information for Tax Purposes of the Organisation for Economic Cooperation and Development.  
104 This is not applicable to branches of the other Party establishe d in the territory of a Party.  
105 Articles 129, 130, (with respect to investment liberalisation), and 137 and 138 (with respect to 
cross-border trade in services).  WT/REG447/1  
 
- 55 - 
 
  available in the normal course of ordinary business (Article 189)106. Separately, a  Joint Declaration 
on Financial Services Regulatory Cooperation  on establish ing structured regulatory cooperation  has 
been adopted at the same time as the TCA . A Memorandum of Understa nding providing a 
cooperation framework for this regulatory cooperation has not yet been signed.   
4.6.6   Maritime transport services107 
4.151.   Section 6 of Chapter 5 of Title II (Heading One of Part Two) sets out specific disciplines 
applicable to measures of a Party aff ecting the supply of international maritime transport services, 
in addition to rules on the regulatory framework in Chapters 1 -4 of Title II, and rules in Sections 1 
of Chapter 5. In addition, non -conforming measures in Annexes 19 and 20 continue to apply.   
4.152.   The Parties commit to the principle of unrestricted access to international maritime markets 
and trade on a commercial and non -discriminatory basis (Article 191). They agree to do so by 
according national treatment108 to ships flying the flag, or operated by service suppliers of the other 
Party; making available certain port services to international maritime transport service suppliers of 
the other Party109; permitting international maritime transport service suppliers  of the other Party, 
subject to authorisation by the competent authority where applicable, to re -position owned or leased 
empty containers, which are not being carried as cargo against payment, between ports of the UK 
or between ports of a n EU Member State ; and permitting international maritime transport service 
suppliers of the other Party to provide feeder services between ports of the UK or between ports of 
an EU Member State, subject to authorisation by the competent authority where applicable.  
4.153.   The Par ties agree not to introduce cargo -sharing arrangements in future agreements with 
third countries concerning international maritime transport services, including dry and liquid bulk 
and liner trade, and terminate, within a reasonable period of time, such ca rgo-sharing arrangements 
if they exist in previous agreements; not to adopt or maintain a measure that requires all or part of 
any international cargo to be transported exclusively by vessels registered in that Party or owned or 
controlled by natural perso ns of that Party; to abolish and abstain from introducing any unilateral 
measures or administrative, technical and other obstacles which could constitute a disguised 
restriction or have discriminatory effects on the free supply of international maritime tr ansport 
services; and not to prevent international maritime transport service suppliers of the other Party 
from directly contracting with other transport service suppliers for door -to-door or multimodal 
transport operations.  
4.154.   Title II of Heading One of Part  Two does not apply to national maritime cabotage110 or inland 
waterways transport (Article 123). Moreover, through Article 377, both are  excluded from the 
disciplines on non -discriminatory treatment and commercial considerations (Article 380) in Chapter 
 
106 Article 189 does not confer access to the Party's lender of last resort facilities.  
107 Under  the Agreement, international maritime transport services means the transport of passengers 
or cargo by seagoing vessels between a port of one Party and a port of the other Party or of a third country, or 
between ports of different Member States, including  the direct contracting with providers of other transport 
services, with a view to covering door -to-door or multimodal transport operations under a single transport 
document, but does not include the right to provide such other transport services . 
108 Nation al treatment is granted with regard to, inter alia: (i) access to ports; (ii) the use of port 
infrastructure; (iii) the use of maritime auxiliary services; and (iv) customs facilities and the assignment of 
berths and facilities for loading and unloading, i ncluding related fees and charges . 
109 The port services concerned are: pilotage, towing and tug assistance, provisioning, fuelling and 
watering, garbage collecting and ballast waste disposal, port captain's services, navigation aids, emergency 
repair facili ties, anchorage, berth, berthing and unberthing services and shore -based operational services 
essential to ship operations, including communications, water and electrical supplies . The terms and conditions 
should be both reasonable and no less favourable t han those applicable to its own suppliers or vessels or to 
vessels or suppliers of a third country (including fees and charges, specifications and quality of the service to 
be provided).  
110 National maritime cabotage covers: for the EU, without prejudice to  the scope of activities that may 
be considered cabotage under the relevant national legislation, transportation of passengers or goods between 
a port or point located in an EU member State and another port or point located in that same EU member 
State, in cluding on its continental shelf, as provided for in the United Nations Convention on the Law of the Sea 
and traffic originating and terminating in the same port or point located in a Member State; for the UK, 
transportation of passengers or goods between a port or point located in the UK and another port or point 
located in the UK, including on its continental shelf, as provided for in the United Nations Convention on the 
Law of the Sea and traffic originating and terminating in the same port or point loca ted in the UK.  WT/REG447/1   
 
- 56 - 
 
  4 (state -owned enterprises, enterprises granted with special rights or privileges and designated 
monopolies) of Title XI  of Heading One of Part Two . 
4.6.7   Air transport111 
4.155.   Title I of Heading Two covers air transport112, while Title II of Heading Two covers aviation 
safety.  
4.156.   Articles 418 through 442 govern the regulation of air transport. For passenger transport, 
Article 419 grants rights to air carriers of the other Party to fly across a Party's territory without 
landing and make stops in its territory for non -traffic purposes (first and second freedoms) and to 
make stops in each other's' territories (third and fourth freedom rights ). However, all-cargo fifth 
freedom rights (permitting intermediary stops in the Parties) are to be negotiated bilaterally between 
the UK and individual EU Member States. As of November 2022,  negotiations have been concluded 
with 22 EU Member States . Article 419 also prohibits the Parties from unilaterally limiting volumes 
of traffic, capacity, frequency, regularity, routing, origin or destination of air transport services 
except as required and applied in a non -discriminatory manner. In order to qual ify for authorization 
to operate in the other Party, the carrier must be owned directly or through majority ownership and 
effectively controlled by nationals of that Party (or for EU carriers also EEA or Swiss nationals) and  
have its principal place of bus iness and be licensed with an air operator certificate in that Party. 
Ownership and control of UK carriers by EU, EEA and Swiss nationals is recognized only for those 
carriers that held a valid operating license under EU law on the day the transition perio d ended  
(Article 422). Options for reciprocal liberalisation of ownership  and control of the Parties' air carriers 
is to be examined in the Specialized Committee on Air Transport within  12 months of receipt of a 
request from the Parties (Article 425). For commercial operations air carriers are not required to 
have a local sponsor and there are no restrictions on the establishment of offices and entry to 
facilities by specialized staff required for the provision of the service in the other Party (Article 429 ). 
Carriers are able to conduct self-handling  or select from competing suppliers. Fiscal provisions; rules 
on user charges; and disciplines on tariffs are in Articles 430 through 432. Cooperation on the 
provision of statistical information related to air t ransport ; as well as aviation safety and security; 
air traffic management; air carrier liability; and consumer protection are addressed in Articles 433 
through 438. The relationship with other agreements (for instance decisions adopted by the 
International  Civil Aviation Organisation) is dealt with in Article 439. Final provisions (suspension 
and termination of Title I; and registration of the Agreement with ICAO) are contained in Article 440 
through 442 . Title XI on Level Playing Field for Open and Fair Co mpetition and Sustainable 
Development also apply to air transport.  
4.157.   A Specialised Committee on Air Transport is established to monitor  the implementation of 
Title I of Heading Two of Part Two . 
4.158.   Title II of Heading Two pursues the objectives of enabl ing reciprocal acceptance, as provided 
for in Annexes to the Agreement , of findings of compliance and certificates issued by either Party's 
competent authorities or approved organisations; promot ing cooperation toward a high level of civil 
aviation safety and envi ronmental compatibility; facilitat ing the multinational dimension of the civil 
aviation industry;  and facilitat ing and promot ing the free flow of civil aeronautical products and 
services . The areas of cooperation between the Parties are listed in Article 445 and Annex 30 to the 
Agreement .113 The scope of Title II on aviation safety shall be established by way of Annexes 
covering each area of cooperation  and shall describe the terms, conditions and methods for the 
reciprocal acceptance of findings of compliance and certificates, and, if necess ary, transitional 
arrangements.  Furthermore, the technical agents may develop implementation procedures for each 
 
111 Title II of Heading Two does not apply to air services or related services in support of air services, 
other than aircraft repair and maintenance services; computer reservation system services; ground handling 
services; some services provided using a manned aircraft; and the selling and marketing of air transport 
services. (Article 123 ). 
112 Under the Agreement, "air transport" means the carriage by aircraft of passengers, baggage, cargo, 
and mail, separately or in combination, held out to the public for remuneration or hire.  
113 They may cover: airworthiness certificates and monitoring of civi l aeronautical products; 
environmental certificates and testing of civil aeronautical products; design and production certificates and 
monitoring of design and production organisations; maintenance organisation certificates and monitoring of 
maintenance or ganisations; personnel licensing and training; flight simulator qualification evaluation; operation 
of aircraft; air traffic management and air navigation services; and other areas related to aviation safety 
subject to Annexes to the Convention on Internat ional Civil Aviation.  WT/REG447/1  
 
- 57 - 
 
  individual Annex. Technical differences between the Parties' civil aviation standards, rules, practices, 
procedures and systems shall be addres sed in the Annexes and implementation procedures.114 
4.159.   Articles 44 6 through 45 5, govern regulat ions on  general obligations applicable to finding s of 
compliance and certificates issued; preservation of regulatory authority for each Party; safeguard 
measures that a Party may take in situation s of risk (described in Article 448); communication on 
aviation safety through contact points; transparency, r egulatory cooperation and mutual assistance; 
exchange of safety information; cooperation in enforcement activities; confidentiality and protection 
of data and information; amendments to the Annexes; and cost recovery . Title II of Heading Two  
supersedes any  bilateral aviation safety agreements or arrangements between the Parties with 
respect to any matter covered by Title II  (Article 456). Article 457 addresses the suspension of 
reciprocal acceptance obligations in certain situations, while Article 458 gover ns the possibility to 
terminate Title II and the applicable procedures.  
4.160.   A Specialised Committee on Aviation Safety  is established to monitor the implementation of 
Title I I of Heading Two of Part Two.  
4.161.   Part Three of the Agreement (law enforcement and judici al cooperation in criminal matters), 
Title III, which covers transfer and processing of passenger name record data, also addresses 
aviation.  
4.6.8    Road transport   
4.162.   Title I of Heading Three covers transport of goods by road while Title II of Heading Three 
covers transport of passengers by road. A Specialised Committee on Road Transport is established 
to monitor the implementation of Heading Three. These are in addition to the non -conforming 
measures in Annexes 19 and 20.115 
4.163.   Title I of Heading Three aims to ensure c ontinued connectivity between, through and within 
the territories of the Parties and to lay down the rules applicable to the commercial transport of 
goods by road (Article 459). Non -discrimination shall be a guiding principle, while nothing under 
Title I s hall affect the transport of goods by road within the territory of one of the Parties by a road 
haulage operator established in that territory. Title I is without prejudice to the application of the 
rules established by the European Conference of Ministers  of Transport. Any transport of goods by 
road for which no direct or indirect remuneration is received and which does not directly or indirectly 
generate any income for the driver of the vehicle or for others, and which is not linked to a 
professional acti vity, shall be considered as the transport of goods for a non -commercial purpose 
(Article 460).  
4.164.   Transport of goods between the Parties, with or without transit through third parties may 
take place for up to two laden journeys between EU Member States witho ut returning to the UK for 
UK operators , provided that such journeys follow a journey from the territory of the United Kingdom, 
and within the UK for EU operators , provided that such operations follow a journey from the territory 
of the Union Subject to th e conditions in Article 462 . UK operators may also undertake one laden 
journey within an EU Member State if the journey is taken within seven days of unloading in that EU 
Member State and follows a journey from the territory of the United Kingdom; up to tw o laden 
journeys are permitted in Ireland, for UK operators established within Northern Ireland under the 
same conditions as for EU operators in the UK. Title I of Heading Three also contains provisions on 
license requirements and exemptions for certain ty pes of transport for road haulage operators 
(Article 464); requirements for drivers and vehicles; road traffic rules; development of road 
transport -related laws; remedial measures; and taxation, including exemptions to it.  
 
114 Annex 30 covers the implementation of cooperation on airworthiness certification and monitoring of 
civil aeronautical products; environmental certification and testing of civil aeronautical products; and design 
and production certif ication and monitoring of design and production organisations. Implementation has been 
achieved through the agreement of ‘Technical Implementation Procedures (TIP)’ between the EASA and CAA in 
May 2021. Details of which can be found online at https://www.caa.co.uk/news/caa -and-easa-agree -technical -
implementation -procedures/  
115 The Parties clarify that the activities covered by the Road Transport heading, Annexe s 19 and 20 only 
apply with respect to investment.  WT/REG447/1   
 
- 58 - 
 
  4.165.   Articles 135 (market access for cross -border trade in services) and 137 (national treatment 
for cross -border trade in services) are incorporated into and made part of Title I of Heading Three 
and apply to the treatment of road haulage operators undertaking journeys in accordan ce with Article 
462 (transport of goods between, through and within the territories of the Parties).  
4.166.   Provisions on the termination of Title I of Heading Three are in Article 472.  
4.167.   Title II of Heading Three aims to ensure continued connectivity between, thro ugh and within 
the territories of the Parties and to lay down the rules applicable to the transport of passengers by 
road. It applies to the occasional, regular and special regular transport of passengers by coach and 
bus between, through and within the te rritories of the Parties. Non -discrimination shall be a guiding 
principle, while nothing under Title II shall affect the transport of passengers within the territory of 
one of the Parties by a road passenger transport operator established in that territory . Cabotage for 
passenger transport is not permitted by Article 475 except for passenger transport in Northern 
Ireland. The provisions of Title II will cease to apply as of the date the Protocol to the Interbus 
Agreement regarding the international regular and special regular carriage of passengers by coach 
and bus entered into force for the Parties except for the purpose of the operations under Article 475 
(see paragraph 4.157 above)116. 
4.168.   Authorizations for passenger transport services are issued in the name of the operator and 
are non -transferrable although subcontracting is permitted  with the consent of the authorising 
authority,  (Article 477). The procedures for application and grant of the authorization as well as its 
renewal and lapse are in Articles 478 -481. 
4.169.   Articles 135 (market access for cross -border trade in services) and 137 (national treatment 
for cross -border trade in services) are incorporated into and made part of Title II of Heading Three 
and apply to the treatment of transport operators undertak ing journeys in accordance with Article 
475 (passenger transport by coach and bus between, through and within the territories of the 
Parties).  
4.170.   Annexes 32 (model of authorisation for an international regular and special regular service); 
33 (model of applic ation for an authorisation for an international regular and special regular service), 
and 34 (model of journey form for occasional services) to the Agreement are integral parts of 
Heading Three of Part Two of the Agreement.  
5  GENERAL PROVISIONS OF THE AGREEM ENT 
5.1  Transparency  
5.1.  Transparency provisions  (Title IX of Heading One)  in Part Two apply to trade (Heading One) 
and other provisions (Heading Six) .117 They supplement transparency rules in other Titles of Heading 
One (Article 339).  
5.2.  The Parties aim to provide a predictable regulatory environment and efficient procedures for 
economic operators, especially small and medium sized enterprises (SMEs ), and affirm their 
commitments to  transparency under the WTO (Article 332).  
5.3.  Each Part y shall ensure the prompt publication of its laws, regulations procedures and 
administrative rulings of general application , providing a reasonable period of time between 
publication and entry into force (Article 335). It shall also establish or maintain ap propriate and 
proportionate mechanisms for responding to questions from any person regarding any laws or 
regulations (Article 336).  
5.4.  Laws, regulations, procedures and administrative rulings of general application shall be applied 
in an objective, impartial,  and reasonable manner (Article 337). Each Party shall establish or 
maintain judicial, arbitral or administrative tribunals and procedures for the purpose of the prompt 
review and, if warranted, correction of administrative decisions (Article 338). Tribuna ls shall be 
 
116 The Parties indicate that the Protocol to the Interbus Agreement has not yet entered into force.  
117 All references to Headings  in section 5 of the factual presentation refer to Headings of Part Two 
unless  otherwise specified.  WT/REG447/1  
 
- 59 - 
 
  impartial and independent of the authority entrusted with administrative enforcement and shall carry 
out procedures for appeal or review in a non -discriminatory and impartial manner.  
5.2  Current payments and capital movements  
5.5.  Each Party shall allow  any payments and transfers with respect to transactions on the current 
account of the balance of payments (BOP) that fall within the scope of the Agreement , in freely 
convertible currency and in accordance with the relevant IMF provisions (Article 214)  and, with 
regard to transactions on the capital and financial account  of the BOP , the free movement of capital 
for the liberalisation of investment and other transactions as provided for in Title II of Heading One  
of Part Two  (Article 215).  
5.6.  Articles 214 and 215 shall not be construed as preventing a Party from applying its laws and 
regulations relating to, inter alia , bankruptcy, insolvency, issuing, trading or dealing in financial 
instruments, social security, public retirement or compulsory savings schemes (Article 216). Such 
laws and regulations shall not be applied in an arbitrary or discriminatory manner, or otherwise 
constitute a disguised restriction on capital movements, payments or transfers.  
5.7.  In exceptional circumstances o f serious difficulties, or th reat thereof, to the operation of the 
EU's economic and monetary union, the EU may adopt or maintain safeguard measures that are 
strictly necessary on capital movements, payments or transfers for a period not exceeding six 
months (Article 217). Any Party m ay also adopt or maintain restrictive measures with regard to 
capital movements, payments or transfers in case it experiences serious balance of payments or 
external financial difficulties, or threat thereof (Article 218).  
5.3  Exceptions  
5.8.  The rules governing ex ceptions are in  Title XII (Part Two, Heading One).  
5.3.1   General exceptions  
5.9.  Article XX of GATT 1994, including its Notes and Supplementary Provisions, is incorporated into 
and made part of the Agreement, mutatis mutandis  (Article 412). Moreover, subject to the 
requirement that such measures are not applied in a manner which would constitute a means of 
arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguise 
restriction on investment liberalisation or trade in servic es, nothing in Titles II, III, IV, VIII and 
Chapter 4 of Title XI (Part Two, Heading One) shall be construed to prevent the adoption or 
enforcement by either Party of measures necessary to protect public security or public moral or to 
maintain public order ; necessary to protect human, animal or plant life or health; or necessary to 
secure compliance with laws or regulations which are not inconsistent with the provisions of the 
Agreement including those relating to i) the prevention of deceptive and fraudule nt practices or to 
deal with the effects of a default on contracts, ii) the protection of the privacy of individuals in 
relation to the processing and dissemination of personal data and the protection of confidentiality of 
individual records and accounts a nd iii) safety.  
5.3.2   Security exceptions  
5.10.  Article 415 includes a security exception essentially identical to Article XXI of the GATT  or 
Article XIV bis of the GATS.  
5.3.3   Taxation  
5.11.  Article 413 provides that nothing in Titles I to VII, Chapter 4 of Title VIII, Titles IX  to XII of 
Heading One  of Part Two  or Heading Six  of Part Two  shall affect the rights and obligations of the 
Parties, under any tax convention. In the event of any inconsistency between the Agreement and 
any tax convention, the tax convention shall prevail to the extent of the inconsistency.  
5.4  Relation with WTO Waive rs 
5.12.  If an obligation in Heading One (trade) or Heading Six (other provisions) of Part Two is 
substantially equivalent to an obligation in the WTO Agreement, any measure taken in conformity WT/REG447/1   
 
- 60 - 
 
  with a waiver under Article IX of the WTO Agreement is deemed to be in conformity with the 
substantially equivalent provision in the Agreement (Article 414).  
5.5  Accession and withdrawal  
5.13.   The EU shall notify the UK of any new request for accession by a third party to the EU  and 
during the accession negotiations , upon request,  it shall endeavour t o provide information  regarding 
any matter covered by the Agreement and any supplementing agreement and take into account any 
concerns expressed by the UK (Article 781) . The Partnership Council shall examine any effects of 
accession to the EU on the Agreement sufficiently in advance of the date of such accession. 
Moreover, to the extent necessary, the UK and the EU shall, before the entry into force of the 
accession agreement, amend the Agreement, put in place by Decision of the  Partnership Council any 
other adjustment or transitional agreement , or decide whether to apply Article 492 (visas for short -
term visits)  to the nationals of the acceding  country , or to establish transitional arrangements as 
regards Article 492 in relation  to that third country and its nationals once it accedes to the Union . 
5.14.  Either Party may terminate the Agreement by written notification through diplomatic channels 
and it shall cease to be in force on the first day of the twelfth month following the date o f notification 
(Article 779). Part Two of the Agreement may be terminated by each Party at any moment by written 
notification through diplomatic channels and it shall cease to be in force on the first day of the ninth 
month following the date of notificati on (Article 521) .118  
5.6  Institutional framework  
5.15.  Title III of Part One provides for the institutional framework of the Agreement. The Partnership 
Council  is established in Article 7 which sets out its main functions and Article 519 lists additional 
functions specifically in relation to Part Two.  Its power s include, inter alia , adopting decisions on all 
matters where the Agreement or any supplementing agree ment so provides, making 
recommendations to the Parties regarding the implementation and application of the Agreement, 
adopting amendments, delegating certain powers to the Trade Partnership Committee or to a 
Specialised Committee and establishing Trade Sp ecialised Committees and Specialised Committees.  
Information regarding meetings of the Partnership Council is available online.119  
5.16.  The Trade Partnership Committee and a number of Trade Specialised Committees are 
established in Article 8. Among its function s, the Trade Partnership Committee shall assist the 
Partnership Council, supervise the implementation of the Agreement or any supplementing 
agreement, supervise the work of the Trade Specialised Committees  and explore the most 
appropriate way to prevent or  solve any difficulty that may arise in relation to the interpretation and 
application of the Agreement .120 Information regarding meetings of the Trade Partnership Committee 
are available online.121 
5.17.  The following Trade Specialised Committees are also establi shed by Article 8  on: 
a. Goods which address  national treatment and market access for goods (including trade 
remedies)  and energy goods and raw materials ;  
b. Customs Cooperation and Rules of Origin, which addresses  rules of origin and customs 
and trade facilitation , the Protocol on mutual administrative assistance in customs matters 
and the provisions on customs enforcement of intellectual property rights, fees and 
charges, customs valuation and repaired goods;  
 
118 Heading Four of Part Two (social security coordination and visas for short -term visits) and the 
Protocol on Social Security Coordination shall not be terminated pursuant to Article 521.  
119 UK: Trade and Cooperation Agreement Governance - GOV.UK (www.gov.uk)  
EU: Meetings of the EU -UK Partnership Council and Specialised Committees under the Trade and 
Cooperation Agreement | European Commission (eu ropa.eu)  
120 Annex 1 to the Agreement contains the rules of procedures of the Partnership Council and 
Committees.  
121 UK: Trade and Cooperation Agreement Governance - GOV.UK (www.gov.uk)  
EU: Meetings of the EU -UK Partnership Council and Specialised Committees under the Trade and 
Cooperation Agreement | European Commission (europa.eu)  WT/REG447/1  
 
- 61 - 
 
  c. Sanitary and Phytosanitary (SPS) Measures,  which addresses  SPS measures ;  
d. Technical Barriers to Trade  (TBT) , which addresses  TBT and cooperation on standards ;  
e. Services, Investment and Digital Trade, which addresses  services and investment, digital 
trade, capital movements, payments, transfers, an d temporary safeguard measures  and 
energy goods and raw materials ;  
f. Intellectual Property, which addresses  intellectual property ;  
g. Public Procurement, which addresses  public procurement ;  
h. Regulatory Cooperation, which addresses  good regulatory practices, a nd regulatory 
cooperation ;  
i. Level Playing Field for Open and Fair Competition and Sustainable Development, which 
addresses  the level playing field for open and fair competition and sustainable 
development ;  
j. Administrative Cooperation in VAT and Recovery of  Taxes and Duties, which addresses 
matters covered by the Protocol on administrative cooperation and combating fraud in the 
field of Value Added Tax and on mutual assistance for the recovery of claims relating to 
taxes and duties;  
and Specialized Committe es on:  
k. Energy, (i) which addresses matters on energy (except Chapter 4, Article 323 and Annex 
27), and (ii) provide expertise to the relevant Trade Specialised Committee on matters 
pertaining to Chapter 4 and Article 323;  
l. Air Transport, which addresses matters  on air transport ;  
m. Aviation Safety, which addresses matters on aviation safety ;  
n. Road Transport, which addresses matters on road transport ;  
o. Social Security Coordination, which addresses matters on social security coordination, and 
visas for short term visits  and the Protocol on Social Security Coordination;  
p. Fisheries, which addresses matters on fisheries ;  
q. Law Enforcement and Judicial Cooperation, which addresses matters  on law enforcement 
and judicial cooperation on criminal matters ; and  
r. Participation in EU Programmes, which addresses matters on participation in Programmes 
developed under the auspices of the EU (such as Horizon Europe, for research and 
Copernicus for space) , sound financial management and financial provisions . 
5.18.  Working g roups on organic products, motor vehicles and parts, medicinal products and social 
security coordination are established in Article 9. These Working Groups were considered by the 
Trade Partnership Committee in November 2021 .122  
5.19.  Parliamentary cooperation through a  Parliamentary Partnership Assembly, consisting of 
Members of the European Parliament and  of the Parliament of the United Kingdom, is provided for 
in Article 11 .  
 
122 UK: https://www.gov.uk/government/publications/agenda -of-the-trade -partnership -committee -16-
november -2021/meeting -minutes -of-the-trade -partnership -committee -16-november -2021 
EU: https://ec.europa.eu/info/system/files/minutes -
first_meeting_of_the_trade_partnership_committee_en.pdf   WT/REG447/1   
 
- 62 - 
 
  5.20.  The Parties shall consult civil society on the implementat ion of the Agreement and any 
supplementing agreement, in particular through interaction with domestic advisory groups and the 
Civil Society Forum referred to in Articles 13 and 14 (Article 12).  
5.21.   A Specialized Committee on issues related to the implementati on of the NI Protocol  is 
established in Article 165 of the Withdrawal agreement and its functions are included in Article 14 
of the NI Protocol . Article 15 of the NI Protocol establishes a joint consultive working group on the 
implementation of the NI Prot ocol. It serves as a forum for the exchange of information and mutual 
consultation . 
5.7  Dispute settlement  
5.22.  A mechanism for avoiding and settling disputes between the Parties concerning the 
interpretation and application of the Agreement and supplementing agree ments with a view to 
reaching, where possible, a mutually agreed solution is established in Title I of Part Six (Article 734).  
5.23.  The Parties undertake not to submit a dispute between them on the interpretation or 
application of provisions of the Agreement or  of any supplementing agreement to a settlement 
mechanism other than the mechanism provided for in the Agreement (Article 736). However, th ere 
is a choice of forum clause in case of a substantially equivalent obligation under another international 
agreemen t including the WTO Agreement (Article 737). Once a Party has selected the forum and 
initiated dispute settlement procedures, it shall not initiate procedures under other international 
agreements with respect to the same measure, unless the forum selected first fails to make findings 
for procedural or jurisdictional reasons.  
5.24.  If a Party considers that the other Party has breached an obligation under the Agreement or 
under any supplementing agreement, the Parties shall endeavour to resolve the matter by enter ing 
into consultations in good faith, with the aim of reaching a mutually agreed solution (Article 738). 
Consultations shall be held and concluded within 30 days of the date of delivery of the written request 
by a Party  (20 days on matters of urgency, including those regarding perishable or seasonal goods 
or services) . 
5.25.  The complaining Party may request, in writing, the establishment of an arbitration tribunal if 
i) the respondent Party does not respond to the request for  consultations within 10 days of the date 
of its deliver y, ii) consultations are not held within the time periods referred to in Article 738, iii) the 
Parties agree not to have consultations, or iv) consultations have been concluded without a mutually 
agreed solution (Article 739).  
5.26.  No later than 10 days after the date of delivery of the request for the establishment of an 
arbitration tribunal, the Parties shall consult with a view to agreeing on the composition of the 
arbitration tribunal which is composed of three arbitrators (Article 740).123 
5.27.  The arbitration tribunal shall deliver an interim report to the Parties within 100 days after the 
date of its establishment (Article 745)  and its  ruling, within 130 days of the date of establishment 
of the tribunal.124  
5.28.  Compliance with the ruling of the arbitration tribunal is disciplined by Chapter 3. The Party 
complained against shall deliver a notification to the complaining Party of the measures which it has 
taken or which it envisages to take in order to comply no l ater than 30 days after delivery of the 
ruling (Article 746). If immediate compliance is not possible, the Party complained against shall 
deliver a notification to the complaining Party of the length of the reasonable period of time it will 
require for com pliance with the ruling (Article 747). If the Parties have not agreed on the length of 
the reasonable period of time, the complaining Party may request in writing that the original 
arbitration tribunal determines the length of the reasonable period of time . 
 
123 Requirements for arbitrators are listed in Article 741.  
124 When the arbitration tribunal considers that that dead line cannot be met, its chairperson shall notify 
the Parties in writing, stating the reasons for the delay and the date on which it plans to deliver its ruling. The 
arbitration tribunal shall not deliver its interim report later than 130 days after its est ablishing and the ruling 
later no than 160 days after the date of its establishment under any circumstances.  WT/REG447/1  
 
- 63 - 
 
  5.29.  When the Parties disagree on the existence of, or the consistency with , the covered provisions 
of any measure taken to comply, the complaining Party may deliver a written request to the original 
arbitration tribunal to decide on the matter (Article 748). The arbitration tribunal shall deliver its 
decision to the Parties within 45 days of the date of delivery of the request.  
5.30.  Under certain conditions, the Party complained against shall, at the request of and after 
consultations with the compla ining Party, present an offer for temporary compensation (Article 749). 
The complaining Party may deliver a written notification to the respondent Party that it intends to 
suspend the application of obligations under the covered provisions. The suspension of obligation s 
is conditional and shall not exceed the level equivalent to the nullification or impairment caused by 
the violation. Article 750 provides for the review of any measure taken to comply after the adoption 
of temporary remedies.  
5.31.  Specific arran gements for unilateral measures are set out in Chapter 5  and include special 
procedures for remedial measures and rebalancing, suspension of obligations for the purposes of 
Article 374(12), Article 501(5) and Article 506(7), and conditions for rebalancing,  remedial, 
compensatory and safeguard measures .  
5.8  Relationship with other agreements concluded by the Parties  
5.32.   The Parties affirm their rights and obligations with respect to each other under the WTO 
Agreement and other agreements to which they are party an d nothing in the Agreement shall be 
construed as requiring them to act in a manner inconsistent with obligations under the WTO 
Agreement (Article 515).  
5.33.  The Agreement and any supplementing agreement apply without prejudice to any earlier 
bilateral agreement  between the United Kingdom and the EU and the European Atomic Energy 
Community (article 775).  
5.34.  Table 5.1 below  shows the Parties' RTAs in force, notified and non -notified, other than the 
Agreement.  
Table 5.1 European Union and United Kingdom: participation in other RTAs (notified and 
non-notified in force), as of 1 6 January  2023 
RTA Name  Entry into 
force/ 
provisional 
applicationa Coverage  GATT/WTO Notification  
Year  WTO Provision  
EUROPEAN UNION  
EU - Viet Nam  01-Aug-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
EU - Singapore  21-Nov-19 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
EU - Japan  01-Feb-19 Goods & 
Services  2019 GATT Art. XXIV & GATS Art. V  
EU - Armenia  01-Jun-18 Services  2019 GATS Art. V  
EU - Canada  21-Sep-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
EU - Ghana  15-Dec-16 Goods  2017 GATT Art. XXIV  
EU - SADC  10-Oct-16 Goods  2017 GATT Art. XXIV  
EU - Côte d'Ivoire  03-Sep-16 Goods  2008 GATT Art. XXIV  
EU - Georgia  01-Sep-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Republic of Moldova  01-Sep-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Cameroon  04-Aug-14 Goods  2009 GATT Art. XXIV  
EU - Ukraine  23-Apr-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU – Central America  01-Aug-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
EU – Colombia, Ecuador and Peru 01-Mar-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  WT/REG447/1   
 
- 64 - 
 
  RTA Name  Entry into 
force/ 
provisional 
applicationa Coverage  GATT/WTO Notification  
Year  WTO Provision  
• EU - Colombia and Peru - 
Accession of Ecuador  01-Jan-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
EU - Eastern and Southern Africa 
States  14-May-12 Goods  2012 GATT Art. XXIV  
• EU - Eastern and Southern 
Africa States - Accession of 
Comoros  07-Feb-19 Goods  2021 GATT Art. XXIV  
EU - Republic of Korea  01-Jul-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
EU - Serbia  01-Feb-10 
01-Sep-13 Goods  
Services  2010 
2013 GATT Art. XXIV  
GATS Art. V  
EU - Pacific States  20-Dec-09 Goods  2011 GATT Art. XXIV  
• EU - Pacific States - 
Accession of Solomon Islands  17-May-20 Goods  2020 GATT Art. XXIV  
• EU - Pacific States - 
Accession of Samoa  31-Dec-18 Goods  2020 GATT Art. XXIV  
EU - CARIFORUM States  29-Dec-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
EU - Bosnia and Herzegovina  01-Jul-08 
01-Jun-15 Goods  
Services  2008 
2016 GATT Art. XXIV  
GATS Art. V  
EU - Montenegro  01-Jan-08 
01-May-10 Goods  
Services  2008 
2010 GATT Art. XXIV  
GATS Art. V  
EU - Albania  01-Dec-06 
01-Apr-09 Goods  
Services  2007 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Algeria  01-Sep-05 Goods  2006 GATT Art. XXIV  
EU - Egypt  01-Jun-04 Goods  2004 GATT Art. XXIV  
EU - Lebanon  01-Mar-03 Goods  2003 GATT Art. XXIV  
EU - Chile 01-Feb-03 
01-Mar-05 Goods  
Services  2004 
2005 GATT Art. XXIV  
GATS Art. V  
EU - Jordan  01-May-02 Goods  2002 GATT Art. XXIV  
EU - San Marino  01-Apr-02 Goods  2010 GATT Art. XXIV  
EU - North Macedonia  01-Jun-01 
01-Apr-04 Goods  
Services  2001 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV  
GATS Art. V  
EU - Israel  01-Jun-00 Goods  2000 GATT Art. XXIV  
EU - Morocco  01-Mar-00 Goods  2000 GATT Art. XXIV  
EU - South Africa  01-Jan-00 Goods  2000 GATT Art. XXIV  
EU - Tunisia  01-Mar-98 Goods  1999 GATT Art. XXIV  
EU - Palestine  01-Jul-97 Goods  1997 GATT Art. XXIV  
EU - Faroe Islands  01-Jan-97 Goods  1997 GATT Art. XXIV  
EU - Türkiye 01-Jan-96 Goods  1995 GATT Art. XXIV  
European Economic Area (EEA)  01-Jan-94 Services  1996 GATS Art. V  
EU - Andorra  01-Jul-91 Goods  1998 GATT Art. XXIV  
EU - Syria 01-Jul-77 Goods  1977 GATT Art. XXIV  
EU - Norway  01-Jul-73 Goods  1973 GATT Art. XXIV  
EU - Iceland  01-Apr-73 Goods  1972 GATT Art. XXIV  
EU - Switzerland - Liechtenstein  01-Jan-73 Goods  1972 GATT Art. XXIV  
EU – Overseas Countries and 
Territories (OCT)  01-Jan-71 Goods  1970 GATT Art. XXIV  
EU - Kosovob 01-Apr-16 Goods  Not notified  
UNITED KINGDOM  
United Kingdom – Iceland, 
Liechtenstein and Norway  01-Dec-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V   
United Kingdom – Mexico  01-Jun-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Serbia  20-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Albania  03-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Jordan  01-May-21 Goods  2021 GATT Art. XXIV  WT/REG447/1  
 
- 65 - 
 
  RTA Name  Entry into 
force/ 
provisional 
applicationa Coverage  GATT/WTO Notification  
Year  WTO Provision  
United Kingdom - Ghana  05-Mar-21 Goods  2021 GATT Art. XXIV  
United Kingdom - Cameroon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Canada  01-Jan-21 
01-Apr-21 Goods  
Services  2020 
2021 GATT Art. XXIV  
GATS Art. V  
United Kingdom - CARIFORUM 
States  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Central America  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Chile 01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Colombia, 
Ecuador and Peru  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Côte d'Ivoire  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Eastern and 
Southern Africa States  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Egypt  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Faroe Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Georgia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Israel  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Japan  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Kenya  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Kosovob 01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Lebanon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Morocco  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - North Macedonia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Pacific States  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Samoa  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Solomon Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Palestine  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Republic of Korea  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Republic of 
Moldova  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - SACU and 
Mozambique  01-Jan-21 Goods  2021 GATT Art. XXIV  
United Kingdom – Singapore  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Switzerland - 
Liechtenstein  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Tunisia  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Türkiye  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Ukraine  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Viet Nam  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
a Dates of the first entry into force/provisional application for at least one of the Parties. Where dates 
of provisional application have been provided by the Parties, further notifications to confirm the 
dates of entry into force are awaited.  
b Reference to Kosovo in this table shall be understood to be in the context of the United Nations 
Security Council resol ution 1244 (1999).  
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wto.org .  WT/REG447/1   
 
- 66 - 
 
  5.9  Government procurement  
5.35.  Title VI of Heading One  of Part Two  covers public procurement. Articles I to III, IV.1.a, IV.2 
to IV.7, VI to XV, XVI.1 to XVI.3, XVII and XVIII of the WTO Government Procurement Agreement 
(GPA) and the Annexes of each Party to Appendix I to the GPA are incorporated into the Agreement  
and apply, mutatis mutandis , to suppliers, goods or services of the other Party  (Article 277). the 
Parties have not amended their GPA commitments (within the GPA framework) as a result of the 
Agreem ent. Covered procurement is defined as procurement to which Article II of the GPA applies 
and, in addition, procurement listed in Section B of Annex 25  to the Agreement .125  
5.36.  Each Party shall ensure that its procuring entities conduct covered procurement by electronic 
means to the widest extent practicable (Article 278). Except for specific situations, such electronic 
means of information and communication shall be non -discriminatory, generally available and 
interoperable with the information and communicatio n technology products in general use and shall 
not restrict access to the procurement procedure. Article 279 provides for electronic publication 
through a single point of access on the internet of all procurement notices including notices of 
intended procu rement, summary notices, notices of planned procurement and contract award 
notices.  
5.37.  Articles 280 through 286 contain additional rules related to supporting evidence, conditions 
for participation, registration systems and qualification procedures, selective  tendering, abnormally 
low prices, environmental, social and labour considerations and domestic review procedures.  
5.38.  National treatment beyond covered procurement of locally established suppliers is provided 
for in Article 288. The application of the nation al treatment obligation is subject to security and 
general exceptions as defined in Article III of the GPA, even if the procurement is not covered in 
accordance with Title VI.  
5.39.  The procedures for the modification or rectification of market access commitment s for 
additional procuring entities and additional services included in Section B of Annex 25  to the 
Agreement  are set out in Articles 290 to 293 (Article 289).  
5.40.  The Parties recognise the benefits that may arise from cooperating in the international 
promot ion of the mutual liberalisation of public procurement markets and shall make available to 
each other annual statistics on covered procurement subject to technical availability (Article 294). 
5.10  Intellectual property rights  
5.41.  Title V of Heading One  of Part Two  covers intellectual property rights. It complements and 
further specifies the rights and obligations between the Parties under the WTO TRIPS Agreement  
and other relevant international treaties  (Article 220).126 Chapter 1 contains general provisions on 
intellectual property rights (IPRs) while Chapter 2 contains standards concerning IPRs with sub -
sections 1 through 6 covering copyright and related rights, trademarks, design, patents, protection 
of undisclosed inf ormation and plant varieties. Chapter 3 provides for enforcement and Chapter 4 
includes other provisions.  Title V does not affect the freedom of the Parties to determine whether 
and under what conditions the exhaustion of intellectual property rights appli es (Article 223).  
5.42.   Article 224 provides for national treatment for all categories of intellectual property covered 
subject to the exceptions already provided for in the Paris Convention, the Berne Convention, the 
Rome Convention and the Treaty on Intellect ual Property in Respect of Integrated Circuits.127 
 
125 Section B of Annex 25 includes, for each Party, additional procuring entities and additional services 
to which Title VI on public procurement of the Agreement applies. The thresholds for these additional entities 
are equal to the threshold in each Party's Annex 3 to the GPA (i.e., 400,000 SDR for procurement of goods and 
services and 5,000,000 SDR for procurement of construction services).  The EU a nd the UK took additional 
commitments in terms of coverage: 1) regarding entities covered; and 2) regarding services covered for both 
the new entities and the entities covered in the GPA. This is done through the definition of covered 
procurement and the c ommitments are listed in section B of Annex 25.  
126 Article 222 lists the international agreements to which the Parties are party.  
127 The Article specifies that the term protection includes matters affecting the availability, acquisition, 
scope, maintenance,  and enforcement of intellectual property rights as well as matters affecting the use of 
intellectual property rights specifically addressed in Title V, including measures to prevent the circumvention of 
effective technological measures and measures concer ning rights management information.  WT/REG447/1  
 
- 67 - 
 
  Exceptions are permitted in relation to judicial and administrative procedures  and n ational treatment 
does not apply to procedures provided in multilateral agreements concluded under the auspices of 
WIPO re lating to the acquisition or maintenance of IPRs.  
5.43.  With respect to copyright and related rights, Articles 225 through 22 8 establish exclusive 
rights of authors, performers, producers of phonograms and broadcasting organizations. Article 229 
guarantees  the right to equitable remuneration of performers and producers of phonograms when 
phonograms are published for commercial purposes.  The term s of protection are set out in Article 
230 and they are either 50 or 70 years depending on the beneficiary and/or the ev ent that gives 
rise to the rights. The Agreement includes other specific disciplines applicable to resale right 
(Article  231), collective  management of rights (Article 232), exceptions and limitation (Article 233), 
protection of technological measures (Article 234)  and obligations concerning rights management 
information (Article 235) .  
5.44.  With respect to trademarks the Parties shall maintain a classification system consistent with 
the Nice classification  (Article 236). A registered trademark shall confer on t he proprietor exclusive 
rights (Article 238). Article 239 through 244 contain specific disciplines applicable to registration 
procedures, well -known trademarks, exceptions to the rights conferred by a trademark and grounds 
for revocation , the right to proh ibit preparatory acts in relation to the use of packaging or other 
means and bad faith applications . 
5.45.  Each Party shall provide for the protection of independently created  new and original designs 
(Article 245). The holder of a registered design shall have the right to prevent third parties from 
making, offering for sale, selling, importing, exporting or stocking products that bear or embody the 
protected design. The duration of protection available for registered designs, including renewals of 
register ed designs, is set to a total term of 25 years from the date on which the application was filed 
(Article 246).  Holders of an unregistered design have the right to prevent the use of the unregistered 
design by any third party not having the holder's consent  only if the contested use results from 
copying the unregistered design in the territory of a Party (Article 247). Exceptions and relationship 
to copyright are regulated under Articles 248 and 249 . 
5.46.  The Parties  recognise the importance of the Declaration on  the TRIPS Agreement and Public 
Health and shall implement Article 31bis of the TRIPS Agreement, the Annex and its Appendix to the 
TRIPS Agreement (Article 250). Article 251 extends  the period of protection conferred by a patent 
on medicinal products and o n plant protection products . 
5.47.  Section 5  of Chapter 2  includes provisions for the protection of trade secrets (Article 252), 
data submitted to obtain an authorisation to put a medicinal product on the market (Article 253) 
and data submitted to obtain marketi ng authorisation for plant protection products or biocidal 
products (Article 254).  
5.48.  The Parties shall protect plant varieties rights in accordance with the International Convention 
for the Protection of New Varieties of Plants including the exceptions to th e breeder's right 
(Article  255).  
5.49.  Chapter 3 contains specific disciplines on civil and administrative enforcement (Section 2), 
civil judicial procedures and remedies for trade secrets  (Section 3)  and border enforcement 
(Section  4). 
5.50.  The Parties agree to coo perate with a view to supporting the implementation of Title V 
(Article  273), voluntary stakeholder initiatives (Article 274) and to review geographical indications 
(Article 275) . 
5.11  Competition  
5.51.  Articles 355 sets out the principles and objectives of Title XI of Heading One of Part Two on 
level playing field for open and fair competition. The Parties recognise that trade and investment 
between them require conditions that ensure a level playing field for open and fair competition. They 
affirm their common under standing that their economic relationship can only deliver benefits in a 
mutually satisfactory way if the commitments on a level playing field for open and fair competition 
stand the test of time, by preventing distortions in trade or investment, and by co ntributing to WT/REG447/1   
 
- 68 - 
 
  sustainable development. However, they recognise that the purpose of Title XI is not to harmonise 
their standards which they are determined to maintain and improve.  
5.52.  The Parties affirm their right to set policies and priorities  in the areas covered under the level 
playing field for open and fair competition Chapter,  to determine appropriate levels of protection and 
to adopt or modify laws and policies in a manner consistent with each Party's international 
commitments (Article 356 ). 
5.53.  Chapter 2 of Title XI deals specifically with competition policy. The Parties recognise the 
importance of free and undistorted competition in their trade and investment relations (Article 358) 
and they shall maintain a competition law which effectively addresses anticompetitive business 
practices such as i) agreements between economic actors, decisions by associations of economic 
actors and concerted practices which have as their object or effect the prevention, restriction or 
distortion of competition, ii) abuse by one or more economic actors of a dominant position and iii) 
mergers or acquisitions (for the UK) and concentrations (for the EU) between economic actors which 
may have significant anticompetitive effects (Article 359).128 Competition laws shall  apply to all 
economic actors irrespective of their nationality or ownership status.   
5.54.  Article 360 provides for the enforcement of competition laws and the independence of 
authorities competent for their effective enforcement. Competition laws shall be appl ied in a 
transparent and non -discriminatory manner.  
5.55.  The Parties recognise the importance of cooperation between their respective competition 
authorities with regard to developments in competition policy and enforcement activities (Article 
361).  
5.56.  The Chapte r on competition is not subject to the dispute settlement provisions of the 
Agreement (Article 362).  
5.12  State Owned Enterprises (SOEs)  
5.57.  The provisions in Chapter 4 of Title XI of Heading One of Part Two apply to state -owned 
enterprises (SOEs ), enterprises granted special rights or privileges and designated monopolies, at 
all levels of government, engaged in commercial activities (Article 377). They do not apply to 
government procurement, services supplied in the exercise of governmental autho rity and if, in any 
one of the three previous fiscal years, the annual revenue derived from the commercial activities 
was less than 100 million SDRs.  
5.58.  The Parties affirm their rights and obligations under paragraphs 1 to 3 of Article XVII of GATT 
1994, the  Understanding on the Interpretation of Article XVII of the GATT 1994, as well as under 
paragraphs 1, 2 and 5 of Article VIII of the GATS (Article 378).  
5.59.  Each Party shall ensure that its SOEs, designated monopolies and enterprises granted special 
rights or privileges , when engaging in commercial activities, act in accordance with commercial 
considerations in their purchase or sale of a good or service and accord to goods, services and 
enterprises of the other Party treatment no less favourable than they accords to domestic like goods, 
like services and enterprises (Article 380).129  
5.60.  Each Party shall respect and make the best use of relevant international standards including 
the OECD Guidelines on Corporate Governance of SOEs and ensure the independence and 
impartiality of any regulatory body, and any other body exercising a regulatory function 
(Article  381).  
 
128 Each Party may provide for exemptions from its competition law in pursuit of legitimate public policy 
objectives, provided that they are transparent and proportionate to those objectives.  
129 Article 380 does not apply t o the supply of financial services by SOEs,  enterprises granted special 
rights or privileges and designated monopolies  pursuant to a government mandate (under certain conditions), 
audio -visual services , national maritime cabotage  and inland waterways trans port. Moreover, Article 380  does 
not apply to the extent that SOEs, enterprises granted special rights or privileges and designated monopolies 
make purchases or sales of goods or services pursuant to any existing non -conforming measure set out in the 
Parties' schedules to Annexes 19 and 20  to the Agreement.  WT/REG447/1  
 
- 69 - 
 
  5.13  Environment  
5.61.  Article 355 sets out the principles and objectives of Title XI of Heading One of Part Two on 
sustainable development. The Parties recognise tha t trade and investment conditions ensure that 
trade and investment are conducive to sustainable development. They also recognise that 
sustainable development encompasses economic and social development and environmental 
protection and affirm their commitme nt to promoting the development of international trade and 
investment in a way that contributes to sustainable development. However, they recognise that the 
purpose of Title XI is not to harmonise their standards which they are determined to maintain and 
improve. Each Party reaffirms its ambition of achieving economy -wide climate neutrality by 2050.  
5.62.  The Parties affirm their right to set policies and priorities in the areas covered by Title XI, to 
determine the appropriate levels of protection and to adopt o r modify laws and policies in a manner 
consistent with each Party's international commitments (Article 356). They also acknowledge that, 
in accordance with the precautionary approach, where there are reasonable grounds for concern 
that there are potential threats of serious or irreversible damage to the environment or human 
health, the lack of full scientific certainty shall not be used as a reason for preventing a Party from 
adopting appropriate measures to prevent such damage. When preparing or implementi ng measures 
aimed at protecting environment al or labour conditions that may affect trade or investment, each 
Party shall take into account relevant and available scientific and technical information, international 
standards, guidelines and recommendations.  
5.63.  Chapter 7 of Title XI of Heading One  of Part Two  deals specifically with environment and 
climate. The Parties affirm their right to set policies and priorities in environment -related areas, to 
determine the appropriate levels of environmental and climate protection and to adopt or modify 
laws and policies in a manner consistent with their international commitments (Article 391). 
Moreover, a Party shall not weaken or reduce, in a manner affecting trade or investment between 
the Parties, its environmental an d climate levels of protection below the levels in place at the end of 
the transition period  (31 December 2020) , including by failing to effectively enforce its laws and 
standards.  
5.64.  Each Party shall have in place and maintain an effective system of carbon pricing as of 1 
January 2021  which shall cover greenhouse gas emissions from electricity and heat generation, 
industry and aviation (Article 392).130 The Parties shall cooperate on carbon pricing and give serious 
consideration to linking their respec tive carbon pricing systems in a way that preserves the ir integrity 
and provides for the possibility of increas ing their effectiveness.  
5.65.  Each Party commits to respecting the internationally recognised environmental principles to 
which it has committed inclu ding the principle that environmental protection should be integrated 
into policymaking , the principle of preventative action to avert environmental damage, the 
precautionary approach, the principle that environmental damage should be rectified at source a nd 
the polluter pays principle (Article 393).  
5.66.  Articles 394 and 395 provide for enforcement  obligations  and cooperation on monitoring and 
enforcement respectively.  
5.67.  Chapter 8 of Title XI of Heading One of Part Two contains provisions to enhance the integrati on 
of environmental dimensions of sustainable development in the Parties' trade and investment 
relationship and to complement the ir commitments under Chapter 7 (Article 397). Such provisions 
cover transparency (Article 398), multilateral environmental agre ements (Article 400), trade and 
climate change (Article 401), biological diversity (Article 402), forests (Article 403), sustainable 
management of marine biological resources and aquaculture (Article 404), investment favouring 
sustainable development (Arti cle 405 ) and responsible supply chain  management  (Article 406).   
5.68.  The Parties shall make all efforts through dialogue, consultation, exchange of information and 
cooperation to address any disagreement on the application of Chapters 7 and 8 and, in the event  
of a dispute, they shall have recourse exclusively to the procedures established under Articles 408 
 
130 Aviation shall be included within two years at the latest.  WT/REG447/1   
 
- 70 - 
 
  and 409 (for disputes concerning the interpretation and application of Chapter 7) based on  
consultations and  a panel of experts respectively (Article 396).  
5.69.  Article 411 sets out the procedures that apply to rebalancing measures that either Party may 
take if material impacts on trade or investment between the Parties arise as a result of significant 
divergences between the m in policies and priorities on enviro nmental or climate protection.  
5.14  Labour  
5.70.  In addition to the provisions under Articles 355 and 356 mentioned in the previous section, 
Chapter 6 of Title XI of Heading One of Part Two deals with labour and social standards.  The Parties 
affirm their right to set  policies and priorities in labour -related areas, to determine the appropriate 
labour and social levels of protection and to adopt or modify laws and policies in a manner consistent 
with each Party's international commitments (Article 387).131 Moreover, a Party shall not weaken or 
reduce, in a manner affecting trade or investment between the Parties, its labour and social levels 
of protection below the levels in place at the end of the transition period (31 December 2020) , 
including by failing t o effectively enforce its law and standards . 
5.71.  Each Party shall have in place and maintain a system for effective domestic enforcement and, 
in particular, an effective system of labour inspections in accordance with its international 
commitments relating to working conditions and the protection of workers (Article 388). 
Administrative and judicial proceedings that allow public authorities and individuals to bring timely 
actions against violations of the labour law and social standards and provide for appropri ate and 
effective remedies, including interim relief and proportionate and dissuasive sanctions, shall be 
available.  
5.72.  Chapter 8 of Title XI of Heading One of Part Two contains provisions to enhance the integration 
of labour dimensions of sustainable develo pment in the Parties' trade and investment relationship 
and to complement the commitments of the Parties under Chapters 6 (Article 397). Such provisions 
cover transparency (Article 398), multilateral labour standards and agreements (Article 399), 
investmen t favouring sustainable development (Article 405) and responsible supply chain  
management  (Article  406).   
5.73.  The Parties shall make all efforts through dialogue, consultation, exchange of information and 
cooperation to address any disagreement on the applicat ion of Chapters 6 and 8 and, in the event 
of a dispute, they shall have recourse exclusively to the procedures established under Articles 408 
and 409 (for disputes concerning the interpretation and application of Chapter 6) based on  
consultations and a panel of experts respectively (Article 396).  
5.74.  Article 411 sets out the procedures that apply to rebalancing measures that either Party may 
take if there are material impacts on trade or investment between the m as a result of significant 
divergences between the  Parties ' policies and priorities on labour and social protection.   
5.15  Electronic commerce  (digital trade ) 
5.75.  Provisions on measures affecting trade enabled by electronic means are contained in Title III 
of Heading One of Part Two. Their objective is to facilitate digital trade, to address unjustified barriers 
to trade enabled by electronic means and to ensure an open, secure and trustworthy online 
environment for businesses and consumers. Title III does not apply to audio -visual services 
(Article  197).  
5.76.  As a general principle, Article 198 reaffirms the Parties' right to regulate within their territories 
to achieve legitimate policy objectives, such as the protection of public health, social services, public 
education, safety, the environment including cli mate change public morals, social or consumer 
protection, privacy and data protection, or the promotion and protection of cultural diversity. The 
 
131 The definition of labour and social levels of protection is provided in Article 386 and includes levels of 
protection provided in a Party's law and standards with respect to fundamental rights at work, occupational 
health and safety standards, fair working conditions and employment standards, information and consultation 
rights at company level, or restructuring of undertakings.  WT/REG447/1  
 
- 71 - 
 
  Parties nevertheless maintain their right to adopt or maintain measures for prudential reasons and/or 
measures  compatible with the general or the security exceptions.  
5.77.  While Chapter 1 of Title III contains general provisions, Chapter 2 covers data flows and 
personal data protection. The Parties are committed to ensuring cross -border data flows, and that 
to that end , they commit not to restrict cross -border flows by introducing unjustified requirements 
and prohibitions on use of computer facilities for processing and data storage in their respective 
territories.  (Article 201)132, and are free to adopt or maintain meas ures on  the protection of personal 
data and privacy, including with respect to cross -border data transfers provided that the law of the 
Party provides for instruments enabling transfers under conditions of general application for the 
protection of the data  transferred  (Article 202).  
5.78.  Electronic transmissions are considered as the supply of services under Chapter 3 on specific 
provisions. The Parties shall not impose customs duties on electronic transmissions (Article 203); 
and shall not require prior author isation for the provision of a service by electronic means133 
(Article  204). The Parties shall ensure that contracts may be concluded electronically subject to some 
exceptions (Article 205) and not deny the legal effect and admissibility as evidence of elec tronic 
authentication or data sent electronically (Article 206). Article 207 prohibits the Parties from 
requiring the transfer of or access to source code of software owned by a natural or legal person of 
the other Party, subject to court or regulatory bod y requirements, the protection of IPR and GPA 
provisions. Consumer protection provisions are included in Articles 208 and 209, while the Parties 
recognize that open government data contributes to stimulating economic and social development, 
competitiveness , productivity and innovation (Article 210). Cooperation on regulatory issues with 
regard to digital trade is governed by Article 211. An understanding on computer services 
complements Chapter 3 (Section 4. 6.2 above).  
5.16  Small and medium -sized enterprises  
5.79.  Title VII of Heading One  of Part Two includes transparency provisions on small and medium -
sized enterprises (SMEs) with the objective to enhance the ir ability to benefit from Heading One. 
According to Article 296, each Party shall establish or maintain a publ icly accessible website for SMEs 
with relevant information.  
5.80.  Upon the entry into force of the Agreement, each Party shall designate a contact point and 
notify the other Party of its contact details (Article 297). The functions of contact points include, 
inter alia , seeking to ensure that the needs of SMEs are taken into account in the implementation of 
Heading One and that SMEs can benefit from it, considering ways for strengthening the cooperation 
on matters of relevance to SMEs in view of increasing trade  and investment opportunities and 
ensuring that the information referred to in Article 296 is up -to-date, accurate and relevant.  
5.81.  The provisions on SMEs are excluded from the d ispute settlement provisions (Title I of 
Part Six) (Article 298).  
5.17  Other  
5.17.1   Energy134 
5.82.  Provisions on energy are contained in Title VIII of Heading One of Part Two  and aim  to 
facilitate trade and investment between the Parties in energy and raw materials, and to support 
security of supply and environmental sustainability, notably in contributing to the fight against 
 
132 A review of the provisions of Article 201 is foreseen within three years of the date of entry into force 
of the Agreement.  
133 Not applicable to telecommunications services, broadcasting services, gambling services, legal 
representation services or services of n otaries or equivalent professions to the extent that they involve a direct 
and specific connection with the exercise of public authority.  
134 The applicable definitions with respect to Title VIII are contained in Article 300.  WT/REG447/1   
 
- 72 - 
 
  climate change in th ese areas (Article 299).  Unless the Pa rtnership Council decides to extend its 
application in time, Title VIII shall cease to apply on 30 June 2026.135 
5.83.  Chapters 2 and 3 of Title II (services and investment) of Heading One of Part Two apply to 
energy and raw materials. In the event of inconsisten cy between Titles VIII and II (as well as with 
Annexes 19 to 24), Title II and the Annexes shall prevail.  While Annexes 19 and 20 (Parties' non -
conforming measures) and 21 through 24 (movement of natural persons for business purposes) to 
the Agreement are applicable, as appropriate, to energy -related services, Annexes 26 through 29 
complement the provisions in Title VIII.136 
5.84.  As a general principle, Article 302 of the Agreement preserves the rights of the Parties to 
adopt, maintain and enforce measures necess ary to pursue their legitimate public policy objectives, 
such as securing the supply of energy goods and raw materials, protecting society, the environment, 
including fighting against climate change, public health and consumers and promoting security and 
safety.  
5.85.  While Chapter 1 of Title VIII of Heading One of Part Two contains general provisions, in 
Chapter 2 the Parties shall ensure competition in the electricity and gas markets including a non -
discriminatory regulatory framework (for rules, fees and trea tment) for production, generation, 
transmission, distribution or supply of electricity  or natural gas , free choice for consumers in their 
electricity or natural gas suppliers, wholesale electricity and natural gas prices reflecting supply and 
demand (Artic les 303 -304). Article 308 allows for exceptions from these requirements and those for 
third party access and ownership unbundling, may be waived for public policy purposes for certain 
infrastructures and specific markets . Article 305 prohibits markets mark et abuses on wholesale 
electricity and gas markets and Article 3 10 requires there to be  an operationally independent 
regulator.  Section 2 covers disciplines on trading over interconnectors  to ensure their efficient use  
and Section 3 provi des for  cooperat ion on network development and security of supply as well as 
risk preparedness and emergency plans . Technical cooperation between transmission system 
operators and between regulatory authorities shall be ensured under provisions in Section 4.  
5.86.  Commitments on  safe and sustainable energy  are made in Chapter 3 , while Chapter 4 covers  
energy goods  and raw materials .137 In particular, a  Party shall not impose a higher price for exports 
of energy goods or raw materials to the other Party than the price charged domestically , by means 
of measures such as licences or minimum price requirements (Article 325).  The price of the domestic 
supply to consumers of electricity or natural gas may only be regulated  to achieve a public policy 
objective, and only by imposing a regulated price that is clearly defined, transparent, non -
discriminatory and proportionate (Article 326).  If an authorisation for exploration or production of 
hydrocarbons or generation of electricity is required, it shall be granted on the basis of objective and 
non-discriminatory criteria (Article 327). Temporary measures necessary to protect the safety and 
preserve the integrity o f energy equipment or infrastructure can be adopted provided that they are 
not disguised restrictions on trade or investment (Article 328).   
5.87.  The Parties  will ensure effective implementation and  may amend or update Annex 26 , as 
provided for in Article 329. The Parties shall establish a regular dialogue to facilitate meeting the 
objectives of Title VIII (Article 330).  
5.88.  The provisions of EU law govern wholesale electricity markets applicable to and in the UK in 
respect of Northern Ireland (Article 9 of the NI Protocol).  
 
135 However, between 1 July 2026 a nd 31 December 2026, the Partnership Council may decide that Title 
VIII will apply until 31 March 2027. Between 1 April 2027 and 31 December 2027, as well as at any point of 
time in any subsequent year, the Partnership Council may decide that Title VIII wi ll apply until 31 March of the 
following year.  
136 Annex 26 lists energy goods, hydrocarbons and raw materials; Annex 27 contains disciplines related 
to energy and environmental subsidies; Annex 28 allows non -application of the provisions on third -party access 
to transmission and distribution networks, an d on system operation and unbundling of transmission network 
operators; and Annex 29 governs the new procedure for the allocation of capacity on electricity interconnectors 
at the day -ahead market timeframe based on the concept of “Multi -region loose volum e coupling”.  
137 A list of energy goods and raw materials is in Annex 26 to the Agreement.  WT/REG447/1  
 
- 73 - 
 
  5.17.2   Good regulatory practices and regulatory cooperation  
5.89.  Title X of Heading One of Part Two provides for good regulatory practices and regulatory 
cooperation .  
5.90.  The provisions of Title X apply to regulatory measures proposed or issued, as relevant, b y the 
regulatory authority of each Party on matters covered by Heading One of Part Two of the Agreement 
(trade, transport, fisheries and other arrangements), including trade in services and investment. 
Title X reaffirms that each Party shall be free to det ermine its approach to good regulatory practices 
under the Agreement in a manner consistent with its own legal framework, practice, procedures and 
fundamental principles underlying its regulatory system, including, particularly with respect to the 
EU, the precautionary principle. However, the Parties remain free to define their domestic procedures 
for preparing and adopting regulatory measures; or to adopt, in a timely manner, regulatory 
measures to achieve their public policy objectives (Article 340.2). No thing in Title X shall affect the 
right of a Party to define or regulate its own levels of protection in pursuit or furtherance of its public 
policy objectives in a number of areas (Article 340.3).138 Regulatory measures taken by a Party shall 
however not c onstitute a disguised barrier to trade (Article 340.4).  
5.91.  Descriptions of the processes or mechanisms used by a Party's regulatory authority to 
prepare, evaluate or review regulatory measures and a list of planned major regulatory measures 
shall be publicly available (Articles 344 and 345). Regulatory measures shall be published free of 
charge in a designated  register and periodically updated (Article 349). Article 346 provides for public 
consultation. Each Party affirms its intention to ensure that its regulatory authority carries out impact 
assessments for any major regulatory measures (Article 347)  and it shall ensure that its regulatory 
authority has in place processes or mechanisms for periodic retrospective evaluations of regulatory 
measures in forc e (Article 348) . 
5.92.  Regulatory cooperation activities are on a voluntary basis (Article 351).  The functions of the 
Trade Specialised Committee on Regulatory Cooperation include, inter alia , enhancing and promoting 
good regulatory practices and regulatory coop eration  (352) . In accordance with Article 353 , the 
Parties exchanged contact points in 2021 .  
5.93.  Dispute settlement provisions of the Agreement do not apply in respect of disputes regarding 
the interpretation and application of Title X of Heading One of Part Two (Article 354).  
5.94.  Chapter 5 of Title XI of Heading One of Part Two  provides for good governance and taxation 
standards . Moreover, nothing in Titles I to VII, Chapter 4 of Title VIII, Titles IX to XII (all of Heading 
One of Part Two)  or Heading Six  of Part  Two shall affect the rights and obligations of either Party 
under any tax convention (Article 413).  
 
138 Including public health; human, animal or plant life and health, and animal welfare; occupational 
health and safety; labour conditions; environment including climate  change; consumer protection; social 
protection and social security; data protection and cybersecurity; cultural diversity; integrity and stability of 
the financial system, and protection of investors; energy security; and anti -money laundering.  WT/REG447/1   
 
- 74 - 
 
  ANNEX 1  
1. Table A1. 1 shows the tariff liberalization by the EU in relation to imports from the UK (by total, 
agricultural and industrial  products)  compared to the MFN rates . In 2021, the EU's average applied 
MFN rate was 5% overall ( 3.7% for industrial  products and 10.2% for agricultural products). 26.7% 
of the EU's tariff was duty free on an MFN basis; 30.8% of industrial  products and 15.2% of 
agricultural products were duty free. Under the  Agreement all EU tariffs are zero for imports from 
the UK.  
Table A1. 1 European Union:  Indicators of MFN tariff rates and preferential rates for 
imports from the UK  
Origin of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average applied 
tariff  Share 
of duty -
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2021 5.0 7.1 26.7 10.2 13.0 15.2 3.7 5.3 30.8 
UK 2021 0.0 0.0 100.0  0.0 0.0 100.0  0.0 0.0 100.0  
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate 
rates are included. Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data from WTO -IDB and the EU authorities.  
 
2. Table A1. 2 gives an indication of additional market access in the EU (as compared with access 
under MFN conditions) under  the Agreement for the UK 's top 25 global exports, which accounted for 
38.4% of it s global exports in 2018 -2020 (these corresponded to 96 lines in the EU's tariff at the 
six-digit level). 38 of these tariff lines were duty free on an MFN level while the other 58 lines were 
duty free under the Agreement .  
Table A1. 2 European Union: Market access opportunities under the agreement for the 
UK's top 25 exports to the world  
UK's top export products in 20 18-2020  Access Conditions to EU's 
import market  
MFN (20 21) 
Duty -free 
In 2021  HS number and description of the product  
Share in global 
exports (%)  
Average MFN 
applied rate  
(%) No. of 
tariff lines  Duty -free 
Dutiable  
710813  Gold 5.6 0.0 2   
270900  Petroleum oils and oils obtained from bituminous 
minerals, crude  4.9 0.0 2   
300490  Medicaments  3.2 0.0 1   
880330  Parts of aeroplanes or helicopters, n.e.s. (excl. those for 
gliders)  2.9 2.7  1 1 
841112  Turbojets of a thrust > 25 kn  2.6 2.7  3 3 
870323  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, incl. station wagons 
and racing cars, with only spark -ignition internal 
combustion reciprocating piston engine of a cylinder 
capacity > 1.500 cm³ but <= 3.000 cm³  2.3 10.0  3 3 
841191  Parts of turbojets or turbopropellers, n.e.s.  2.1 2.7  1 1 
870324  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, incl. station wagons 
and racing cars, with only spark -ignition internal 
combustion reciprocating piston engine of a cylinder 
capacity > 3.000 cm³  1.7 10.0  2 2 
220830  Whiskies  1.3 0.0 11   WT/REG447/1  
 
- 75 - 
 
  UK's top export products in 20 18-2020  Access Conditions to EU's 
import market  
MFN (20 21) 
Duty -free 
In 2021  HS number and description of the product  
Share in global 
exports (%)  
Average MFN 
applied rate  
(%) No. of 
tariff lines  Duty -free 
Dutiable  
970110  Paintings  1.3 0.0 1   
271012  Light oils and preparations  1.3 3.8 2 9 9 
870322  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, incl. station wagons 
and racing cars, with only spark -ignition internal 
combustion reciprocating piston engine of a cylinder 
capacity > 1.000 cm³ but <= 1.500 cm³  1.2 10.0  2 2 
711319  Articles of jewellery and parts thereof,  1.0 2.5  1 1 
271019  Medium oils and preparations  1.0 2.0 12 13 13 
870332  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, incl. station wagons 
and racing cars, with only diesel engine of a cylinder 
capacity > 1.500 cm³ but <= 2.500 cm³  0.7 10.0  3 3 
300220  Vaccines for human medicine  0.6 0.0 2   
870340  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, incl. station wagons 
and racing cars, with both spark -ignition internal 
combustion reciprocating piston engine and electric 
motor as motors for propulsion  0.6 10.0  2 2 
711021  Palladium, unwrought or in powder form  0.6 0.0 1   
300215  Immunological products, for retail sale  0.6 0.0 1   
851762  Machines for the reception  0.6 0.0 1   
382200  Diagnostic or laboratory reagents on a backing, 
prepared diagnostic or laboratory reagents  0.5 0.0 1   
490199  Printed books, brochures and similar printed matter  0.5 0.0 1   
870333  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, incl. station wagons 
and racing cars, with only diesel engine of a cylinder 
capacity > 2.500 cm³  0.5 10.0  3 3 
840890  Compression -ignition internal combustion piston engine 
"diesel or semi -diesel engine"  0.4 4.2  12 12 
870899  Parts and accessories, for tractors, motor vehicles for 
the transport of ten or more persons  0.4 3.7  3 3 
Total of above  38.4  38 58 58 
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate 
rates are included .  
Based on the HS 2017 nomenclature .  
Source:  WTO estimates based on data from WTO -IDB, EU and the UK authorities  
 
3. Table A1. 3 shows  the tariff liberalization by the UK in relation to imports from the EU  (by total, 
agricultural and industrial  products). In 2021, the UK's average applied MFN rate was 3.8% overall 
(2.5% for industrial  products and 8.9% for agricultural products). 47% of the UK's tariff was duty 
free on an MFN basis; 57.1% of industrial  products and 18.8% of agricultural products  were duty 
free. Under the Agreement all tariffs for imports from the EU are zero.  WT/REG447/1   
 
- 76 - 
 
  Table A1. 3 United Kingdom: Indicators of MFN and preferential rates for imports from  
the EU  
Origin of 
goods  Year  ALL PRODUCTS  HS Chapters 01-24 HS Chapters 25 -97 
Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  
Share of 
duty-free 
tariff 
lines (%)  Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
MFN 2021 3.8 7.8 47.0 8.9 12.0 18.8 2.5 5.8 57.1 
EU  2021 0.0 0.0 100.0  0.0 0.0 100.0  0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation . For the calculation of 
averages, specific rates are excluded , and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rate for the entire year is used for the 
calculation. The products classified beyond HS 8 -digit le vel are counted once and their tariff rates 
are averaged to the 8 -digits level.  
 Based on the HS 201 7 nomenclature  / Common Nomenclature 2021 .  
Source:  WTO estimates based on data provided by the UK authorities (as of July 2021) . 
 
4. Table A1. 4 gives an indication of additional market access in the UK (as compared with access 
under MFN conditions) resulting from the full implementation of the Agreeme nt for the EU 's top 25 
global exports, which accounted for 25.8% of its global exports in 2018 -2020 (these corresponded 
to 169 lines in the UK's tariff at the six -digit level). 43 of these tariff lines were duty free on an MFN 
level while the other 118 lines were duty free under the Agreement .  
Table A1. 4 United Kingdom: Market access opportunities under the agreement for EU's 
top 25 exports to the world  
EU's top export products  
in 2018 -20 Access Conditions to UK's market  
HS n umber and description  Share in 
global 
exports 
(%) MFN 2021  No. of duty -free 
lines under the 
agreement  Average 
Tariff 
(%) No. of 
duty-
free 
lines  No. of 
duti-
able 
lines  2021  
300490  Medicaments  4.3 0.0 1   
870323  Motor cars and other motor 
vehicles  3.1 10.0  3 3 
880240  Aeroplanes and other 
powered aircraft  2.2 0.0 1   
271019  Medium oils and 
preparations  2.0 1.2 12 13 13 
271012  Light oils and preparations  1.6 3.3 2 9 9 
300215  Immunological products   1.6 0.0 1   
870332  Motor cars and other motor 
vehicles  1.0 10.0  3 3 
870322  Motor cars and other motor 
vehicles  0.7 10.0  2 2 
851762  Machines for the reception, 
conversion and transmission 
or regeneration of voice, 
images or other data  0.7 0.0 1   
854231  Electronic integrated circuits 
as processors and controllers  0.7 0.0 3   
841191  Parts of turbojets or 
turbopropellers  0.7 0.0 1   
300220  Vaccines for human medicine  0.6 0.0 2   
870324  Motor cars and other motor 
vehicles  0.6 10.0  2 2 WT/REG447/1  
 
- 77 - 
 
  EU's top export products  
in 2018 -20 Access Conditions to UK's market  
HS n umber and description  Share in 
global 
exports 
(%) MFN 2021  No. of duty -free 
lines under the 
agreement  Average 
Tariff 
(%) No. of 
duty-
free 
lines  No. of 
duti-
able 
lines  2021  
853710  Boards, cabinets and similar 
combinations  0.6 1.5 1 3 3 
870840  Gear boxes and parts thereof  0.6 3.0  4 4 
848620  Machines and apparatus for 
the manufacture of 
semiconductor devices  0.5 0.0 1   
901890  Instruments and appliances 
used in medical, surgical or 
veterinary sciences  0.5 0.0 8   
870899  Parts and accessories, for 
tractors, motor vehicles  0.5 2.7  3 3 
848180  Appliances for pipes, boiler 
shells, tanks, vats or the like  0.5 2.0  17 17 
841112  Turbojets of a thrust  > 25 kn  0.5 0.0 3   
220421  Wine of fresh grapes  0.5 *  58 58 
880330  Parts of aeroplanes or 
helicopters  0.5 0.0 1   
711319  Articles of jewellery and 
parts thereof  0.5 2.0  1 1 
847989  Machines and mechanical 
appliances  0.5 0.0 4   
330499  Beauty or make -up 
preparations and 
preparations for the care of 
the skin  0.5 0.0 1   
Total of above  25.8 2.3 43 118 118 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of averages, 
specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rat e for the entire year is used for the 
calculation. The products classified beyond HS 8 -digit level are counted once and their tariff rates are 
averaged to the 8 -digits level.  
 Based on the HS 2017 nomenclature  / Common Nomenclature 2021 .  
Source:  WTO esti mates based on data provided by the UK authorities (as of July 2021) and Eurostat 
Database.  
__________  