Transition Period
There shall be a transition or implementation period, which shall start on the date of entry into force of the Agreement and end on 31 December 2020.
Unless otherwise provided in the Agreement, EU law shall be applicable to and in the United Kingdom during the transition period.
During the transition period, the EU law applicable above shall produce in respect of and in the United Kingdom the same legal effects as those which it produces within the European Union and its Member States, and shall be interpreted and applied in accordance with the same methods and general principles as those applicable within the European Union.
Institutional Arrangements
For the purposes of the Treaties, during the transition period, the parliament of the United Kingdom shall not be considered to be a national parliament of a Member State, save for defined limited purposes.
During the transition period, provisions of the Treaties which grant institutional rights to Member States enabling them to submit proposals, initiatives or requests to the institutions shall be understood as not including the United Kingdom.
For the purposes of participation in the institutional arrangements, during the transition period, the Bank of England shall not be considered to be a national central bank of a Member State.
During the transition period, representatives or experts of the United Kingdom, or experts designated by the United Kingdom, may, upon invitation, exceptionally attend meetings or parts of meetings of the committees of representatives on the members states which assist the Commision, meetings or parts of meetings of Commission expert groups, meetings or parts of meetings of other similar entities, and meetings or parts of meetings of bodies, offices or agencies, where and when representatives or experts of the Member States or experts designated by Member States take part, provided that one of the following conditions is fulfilled:
- the discussion concerns individual acts to be addressed during the transition period to the United Kingdom or to natural or legal persons residing or established in the United Kingdom;
- the presence of the United Kingdom is necessary and in the interest of the European Union, in particular for the effective implementation of EU law during the transition period.
During such meetings or parts of meetings, the representatives or experts of the United Kingdom or experts designated by the United Kingdom shall have no voting rights and their presence shall be limited to the specific agenda items that fulfil the conditions set out above.
During the transition period, the United Kingdom shall not act as leading authority for risk assessments, examinations, approvals or authorisations at the level of the European Union or at the level of Member States acting jointly as referred to in the acts and provisions listed in Annex VII.
During the transition period, where draft European Union acts identify or refer directly to specific Member State authorities, procedures, or documents, the United Kingdom shall be consulted by the European Union on such drafts, with a view to ensuring the proper implementation and application of those acts by and in the United Kingdom.
UK Third Country Trade Agreements
During the transition period, the United Kingdom may negotiate, sign and ratify international agreements entered into in its own capacity in the areas of exclusive competence of the European Union, provided those agreements do not enter into force or apply during the transition period, unless so authorised by the European Union.
Existing Opt-Outs
The following provisions of the Treaties, and acts adopted by the institutions, bodies, offices or agencies of the European Union, shall not be applicable to and in the United Kingdom during the transition period:
- provisions of the Treaties and acts on the Schengen acquis and in respect of the area of freedom, security and justice, or pursuant to the provisions of the Treaties on enhanced cooperation, which were not binding upon and in the United Kingdom before the date of entry into force of the Agreement as well as acts amending such acts;
- the Citizens initiative provisions
- the right to vote and to stand as candidates in elections to the European Parliament and in municipal elections in their Member State of residence, under the same conditions as nationals of that State;
Security Justice Defence etc
In the event that the European Union and the United Kingdom reach an agreement governing their future relationship in the areas of the Common Foreign and Security Policy and the Common Security and Defence Policy which becomes applicable during the transition period, the corresponding provisions in the Treaties and the acts adopted on the basis of those provisions shall cease to apply to the United Kingdom from the date of application of that agreement.
The United Kingdom shall not participate in any enhanced cooperation:
- in relation to which authorisation was granted after the date of entry into force of the Agreement; or
- within the framework of which no acts were adopted before the date of entry into force of the Agreement.
During the transition period, in relation to measures which amend, build upon or replace an existing measure adopted in the area of freedom, security and justice by which the United Kingdom is bound before the date of entry into force of the Agreement, they shall continue to apply mutatis mutandis. The United Kingdom shall not, however, have the right to notify its wish to take part in the application of new measures other than certain measures referred to in Protocol No 21.
In order to support continuing cooperation between the European Union and the United Kingdom, under the conditions set out for cooperation with third countries in the relevant measures, the European Union may invite the United Kingdom to cooperate in relation to new measures adopted in the area of freedom, security and justice.
Certain Enhanced Cooperation
Unless otherwise provided in the Agreement, during the transition period, any reference to Member States in the EU law including as implemented and applied by Member States, shall be understood as including the United Kingdom.
In relation to permanent structured cooperation established by the EU Treaties, any references to Member States shall be understood as not including the United Kingdom. This shall not preclude the possibility for the United Kingdom to be invited to participate as a third country in individual projects on an exceptional basis, or in any other form of cooperation to the extent allowed and under the conditions set out by future European Union acts adopted in this area.
Where acts of the European Union provide for the participation of Member States, nationals of Member States or natural or legal persons residing or established in a Member State in an information exchange, procedure or programme which continues to be implemented or which starts after the end of the transition period, and where such participation would grant access to security-related sensitive information that only Member States, nationals of Member States, or natural or legal persons residing or established in a Member State, are to have knowledge of, in such exceptional circumstances the references to Member States in such European Union acts shall be understood as not including the United Kingdom. The European Union shall notify the United Kingdom of the application of this derogation;
For the purposes of the recruitment of officials and other servants of the institutions, bodies, offices or agencies of the European Union, any references to Member States in certain provisions of the Staff Regulations and the Conditions of Employment of Other Servants of the European Union, or in the relevant provisions of other staff rules applicable to those institutions, bodies, offices or agencies, shall be understood as not including the United Kingdom.
Specific arrangements relating to EU external action
During the transition period, the United Kingdom shall be bound by the obligations stemming from the international agreements concluded by the European Union, by Member States acting on its behalf, or by the European Union and its Member States acting jointly. The European Union will notify the other parties to these agreements that during the transition period the United Kingdom is to be treated as a Member State for the purposes of these agreements.
During the transition period, representatives of the United Kingdom shall not participate in the work of any bodies set up by international agreements concluded by the European Union, or by Member States acting on its behalf, or by the European Union and its Member States acting jointly, unless:
- the United Kingdom participates in its own right; or
- the European Union exceptionally invites the United Kingdom to attend, as part of the European Union’s delegation, meetings or parts of meetings of such bodies, where the European Union considers that the presence of the United Kingdom is necessary and in the interest of the European Union, in particular for the effective implementation of those agreements during the transition period; such presence shall only be allowed where Member States participation is permitted under the applicable agreements.
In accordance with the principle of sincere cooperation, the United Kingdom shall refrain, during the transition period, from any action or initiative which is likely to be prejudicial to the European Union’s interests, in particular in the framework of any international organisation, agency, conference or forum of which the United Kingdom is a party in its own right.
Whenever there is a need for coordination, the United Kingdom may be consulted, on a case-by-case basis.
Following a decision of the Council falling in relation to foreign affairs and security matters, the United Kingdom may make a formal declaration to the High Representative of the European Union for Foreign Affairs and Security Policy, indicating that, for vital and stated reasons of national policy, in those exceptional cases it will not apply the decision. In a spirit of mutual solidarity, the United Kingdom shall refrain from any action likely to conflict with or impede European Union action based on that decision, and the Member States shall respect the position of the United Kingdom.
During the transition period, the United Kingdom shall not provide commanders of civilian operations, heads of mission, operation commanders or force commanders for missions or operations conducted under the EU Treaties framework, nor shall it provide the operational headquarters for such missions or operations, or serve as framework nation for European Union battlegroups. During the transition period, the United Kingdom shall not provide the head of any operational actions.
Specific arrangements relating to fishing opportunities
As regards the fixing of fishing opportunities for any period falling within the transition period, the United Kingdom shall be consulted in respect of the fishing opportunities related to the United Kingdom, including in the context of the preparation of relevant international consultations and negotiations.
The European Union shall offer the opportunity to the United Kingdom to provide comments on the Annual Communication from the European Commission on fishing opportunities, the scientific advice from the relevant scientific bodies and the proposals from the European Commission for fishing opportunities for any period falling within the transition period.
With a view to allowing the United Kingdom to prepare its future membership in relevant international fora, the European Union may exceptionally invite the United Kingdom to attend, as part of the European Union’s delegation, international consultations and negotiations, to the extent allowed for Member States and permitted by the specific forum.
The relative stability keys for the allocation of fishing opportunities shall be maintained.
Supervision and enforcement
During the transition period, the institutions, bodies, offices and agencies of the European Union shall have the powers conferred upon them by EU law in relation to the United Kingdom and to natural and legal persons residing or established in the United Kingdom. In particular, the Court of Justice of the European Union shall have jurisdiction as provided for in the Treaties. This shall also apply during the transition period as regards the interpretation and application of the Agreement.
Extension of the transition period
The Joint Committee may, before 1 July 2020, adopt a single decision extending the transition period up to a date to be specified [31 December 20XX]. In case of extension, the European Union will notify other parties to international agreements thereof.
In case of such a decision of the Joint Committee the following shall apply:
- the United Kingdom shall be considered as a third country for the purposes of the implementation of the European Union programmes and activities committed under the multiannual financial framework applying as from the year 2021;
- the applicable EU law concerning the European Union’s own resources relating to the financial years [2021 – 20XX] shall not apply to the United Kingdom after 31 December 2020;
The state aid provisions shall not apply to measures of the United Kingdom authorities, including on Rural Development, supporting the production of and trade in agricultural products in the United Kingdom up to an annual level of support which shall not be more than the total amount of expenditure incurred in the United Kingdom under the Common Agricultural Policy in 2019, and provided that a minimum percentage of that exempted support complies with the provisions of Annex 2 to the WTO Agreement on Agriculture.
Such minimum percentage shall be determined on the basis of the last available percentage to which the overall expenditure under the Common Agricultural Policy in the European Union complied with the provisions of Annex 2 to the WTO Agreement on Agriculture;
Contribution to Budget if Transitional Period Extended
For the period between 1 January 2021 and the end of the transition period, the United Kingdom shall: shall make a contribution to the European Union budget, as determined below.
A decision of the Joint Committee above shall:
- establish the appropriate amount of the contribution of the United Kingdom to the European Union budget for the period between 1 January 2021 and the end of the transition period, taking into account the status of the United Kingdom during that period, as well as the modalities of payment of that amount;
- specify the maximum annual level of exempted support, as well as the minimum percentage of it that shall comply with the provisions of Annex 2 to the WTO Agreement on Agriculture;
- lay down any other measure necessary for implementation;
- adapt the dates or periods referred to in the Agreement to reflect the extension of the transition period.
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