Will traders have to comply with two different sets of regulations and compliance procedures if they want to serve both the EU and UK markets?
As of 1 January 2021, the European Union and the United Kingdom will be two separate regulatory and legal spaces. This means that all products exported from the EU to the UK will have to comply with UK technical regulations and will be subject to any applicable regulatory compliance checks and controls. Similarly, all products imported from the UK to the EU will need to comply with EU technical regulations and will be subject to all applicable regulatory compliance obligations, checks and controls for safety, health and other public policy purposes.
Nonetheless, the Trade and Cooperation Agreement contains a number of provisions aimed at preventing and addressing unnecessary technical barriers and requirements, including through bilateral cooperation, and simplifying procedures used to demonstrate compliance with them (conformity assessment procedures).
In particular, the two sides agreed a definition of international standards that identifies the relevant international standard-setting bodies. This will ensure that both sides’ domestic product standards and technical regulations are based on the same international references and are therefore compatible to the extent possible. This will make compliance of products with the other Party’s rules easier and less costly, all the while safeguarding each side’s ‘right to regulate’.
In the field of conformity assessment, the Parties agreed to maintain simplified access to each other’s markets through, in particular, the continued use of self-certification of conformity by the manufacturer where this is currently applied in both the EU and the UK. This covers a very large share of bilateral trade.
The Parties also agreed a comprehensive framework for cooperation on market surveillance and product safety that will underpin the robust enforcement of product safety rules and the high levels of protection of consumers and other users both Parties are committed to. This framework will be implemented in particular through arrangements for information sharing concerning the Parties’ respective market surveillance activities and measures taken with respect to unsafe or otherwise non-compliant products.
In a number of sectors, the Parties have agreed specific arrangements to facilitate bilateral trade, as well as regulatory cooperation. These sectors include automotive, pharmaceuticals, chemicals, wine and organic products.
The main trade facilitation outcomes can be summarised as follows:
What was agreed to facilitate trade in automotive?
- Regulatory convergence will be based on the use of the international technical standards set at UNECE (United Nations Economic Commission for Europe) level. Both Parties will cooperate and, where appropriate, plan initiatives to promote greater international harmonisation of technical requirements.
- Both Parties will accept, in their respective markets, products that are covered by a valid UN type-approval certificate.
- There will be cooperation and exchange of information in the field of market surveillance to support the identification and addressing of non-conformities of motor vehicles.
- There will be cooperation in the field of research and exchange of information linked to the development of new vehicle safety regulations or related standards, advanced emission reduction, and emerging vehicle technologies.
What was agreed to facilitate supplies of medicinal products?
- Recognition of results of inspections carried out by the authorities of the other Party in manufacturing facilities located in the territory of the issuing authority. This will avoid unnecessary duplication of inspections of manufacturers of medicinal products to assess their compliance with Good Manufacturing Practice requirements.
- Possibility for each Party to unilaterally extend such recognition for manufacturing facilities located outside the territory of the issuing authority, under specific terms and conditions.
What was agreed to facilitate trade in chemicals?
- Regulatory cooperation, while respecting each Party’s right to regulate, both bilaterally and in relevant international fora, on the assessment of hazards and risks of chemicals and the formats for documenting the results of such assessments.
- Both Parties’ commitment to implementing the United Nations Globally Harmonized System of Classification and Labelling of Chemicals as well as any scientific and technical guidelines issued by relevant international organisations and bodies.
- Transparent procedures for the classification of substances and the possibility of the exchange of non-confidential information.
What was agreed to facilitate trade in wine?
- Simplified certification requirements for reciprocal market access: wine producers will be allowed to self-certify conformity and quality of their wine.
- Common principles on labelling, ensuring adequate information for consumers while avoiding unnecessary or disproportionate labelling requirements.
- Both Parties’ commitment to mutually accept the importation of wines produced according to each other’s definitions and oenological practices, as long as in line with oenological practices recommended by the International Organisation of the Vine and Wine (“OIV”). Some additional oenological practices and restrictions not covered by OIV have also been agreed.
- Exchange of information and cooperation on wine matters and a review clause whereby the Parties will consider, within three years from the entry into force of the Agreement, further steps to facilitate trade in wines.
What was agreed to facilitate trade in organic products?
- Reciprocal recognition of equivalence of the current EU and UK organic legislation and control system, for all categories of organic products.
- Organic products complying with EU law and certified by control bodies recognised by the EU will be accepted on the UK market and vice-versa.
- In view of new EU rules for organic products applying as of 1.1.2022, equivalence will be reassessed by end-2023.
What does the agreement say about cultural objects?
The EU has long been committed to the safeguard of cultural property, developing a series of measures to tackle the illegal excavation and trafficking of items of cultural property (such as antiquities and archaeological objects), combatting their illegal trade (also recognising the clear links between terrorist financing, money laundering and the illicit movement of cultural goods), and returning unlawfully removed cultural objects to their countries of origin.
The Agreement ensures that the UK will continue to work with the EU in these important endeavours by including an innovative enhanced cooperation provision to facilitate the return of cultural property illicitly removed from the territories of either side.
Will sanitary and phytosanitary requirements (SPS) for imported food, animals and plants change?
Sanitary and phytosanitary (SPS) measures are a set of rules defined by the importing party necessary for the protection of human and animal health (“sanitary”) and plant health (“phytosanitary”). EU law includes detailed SPS rules to ensure high levels of food safety, and reduce or eliminate possible health threats to EU citizens, as well as to animals and plants in the EU. This also includes high standards on matters such as the use of hormones or genetically modified organisms (GMOs).
There will be no changes to these food safety standards and the Trade and Cooperation Agreement will safeguard the EU’s high levels of SPS standards.
Just like agri-food exporters from every other non-EU country, UK agri-food exporters will have to meet all EU SPS import requirements and be subject to official controls carried out by Member States’ authorities at Border Control Posts. Where required, these controls include the verification of health certificates in line with international standards.
Similarly, EU agri-food exporters will have to meet all UK SPS import requirements.
If either Party has significant concerns with respect to food safety, plant or animal health or an SPS measure of the other Party, it can request technical consultations with that Party, or request audits and verifications of the other Party’s inspection and certification system.
Does the agreement provide for any faciliations on SPS?
The Trade and Cooperation Agreement includes a number of measures aimed at limiting SPS import procedures where possible, while upholding strict sanitary standards.
In particular, the Agreement allows for either party to unilaterally decide to reduce the frequency of certain types of border import controls, taking into account the extent to which their SPS rules converge.
It also ensures a simplified process for the approval of imports, where relevant by drawing up lists of establishments that are eligible to export to the other party, based on guarantees provided by the authorities of the exporting Party.
What happens in case of an animal or plant disease outbreak?
In case of animal or plant disease outbreaks in the territory of either Party posing a serious threat to animal or public health, the authorities of either Party may apply temporary protective measures – including suspension of imports from all or part of the country concerned or special requirements on products from that country.
Nevertheless, in order to improve the predictability of agri-food trade, the EU and the UK have agreed on procedures to speed up the recognition of disease-free regions in such cases.
More information:https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_2532