Policy & Compliance
businesses and consumers. Discussions focused on the inter- operability between EU and UK Customs procedures; rules of origin; the UK’s Border Target Operating Model; regulatory divergence between the parties; continued UK recognition of CE product labelling; circular economy legislative initiatives; and the need for having a fiscal representative in guidance on Customs procedures as well as a request to digitalise Customs infrastructure. Stakeholders argued that a sanitary and phytosanitary agreement would facilitate trade, but there did not seem to be any significant deviation from current arrangements. Stakeholders also welcomed the EU and UK’s political commitment to find solutions on product safety and market surveillance. Many of these subjects are familiar to Members and, whilst there may be some simplification of both paperwork and regimes, there was no indication that, for instance, the Safety and Security GB (S&S GB) and Import Control System 2 in the EU (ICS 2) requirements could be replaced by a common safety and security regime. Potential dif fi culties the EU for VAT purposes. Also, there were calls for It is interesting that discussions regarding each of the other main subjects – the level playing field, regulatory cooperation, energy and trade in services – were accorded as much prominence as the trade in goods. Some of these, for instance the aligning of the EU and UK CBAM regimes, may cause difficulties between the two sides. Cumulatively these subjects would appear to have attracted greater interest than the trade in goods. Both sides are committed to the full implementation of the TCA but currently there doesn’t seem any appetite to implement any significant changes, particularly relating to frontier processes. In a way this is not surprising as considerable effort and cost has been incurred to implement new procedures and time is still required to establish how well they will actually work in practice.
BIFAlink takes a look at the topics discussed recently by the two sides as they prepare for of fi cial talks this year on reviewing the Trade and Cooperation Agreement What could change in the UK-EU trade agreement? “ Both sides are committed to the full
I t might surprise the reader to realise that the current Trade and Cooperation Agreement governing relations between the EU and the UK is due for review in 2026. However, much of the preparatory work will be undertaken in 2025. Therefore, it is interesting to look at the main areas discussed at the last meeting of the Civil Society Forum (CSF) of the Trade and Cooperation Agreement (TCA), as these are likely indicators of areas for review. Areas under discussions The agenda for the joint meeting of the EU and UK focused on the following areas: • Trade in goods, • Level playing field and regulatory cooperation, • Trade in services, • Energy.
Clearly there has been regulatory divergence between the UK and EU, which in some cases is an accelerating process. Some government departments genuinely believe that the procedures improve their ability to conduct their regulatory responsibilities. Also, it is noteworthy that there was relatively little discussion regarding frontier processes. There was more discussion regarding aligning regulations relating to the goods being physically moved. Discussions between the two sides raised a limited range of issues relating to Customs, rules of origin, technical barriers to trade, and sanitary and phytosanitary measures. The importance of communication and consultation was emphasised to support
implement- ation of the TCA but currently there doesn’t seem any appetite to implement any significant changes
February 2025 | 11
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