On the implementation of the EU-UK Trade and Cooperation Agreement

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the implementation of the EU-UK Trade and Cooperation Agreement

(2024/2108(INI))

The European Parliament,

– having regard to the Treaty on European Union and the Treaty on the Functioning of the European Union,

– having regard to the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part (‘TCA’),

– having regard to the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (the ‘Withdrawal Agreement’),

– having regard to the Windsor Framework that lists the provisions of Union law which are to apply to and in the United Kingdom in respect of Northern Ireland,

– having regard to the Commission report of 21 March 2024 on the implementation and application of the Trade and Cooperation Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland: 1 January – 31 December 2023 (COM(2024)0127),

– having regard to the Commission report of 4 April 2025 on the implementation and application of the Trade and Cooperation Agreement between the European Union and the United Kingdom of Great Britain and Northern Ireland: 1 January – 31 December 2024 (COM(2025)0149),

– having regard to its resolutions of 2 April 2025 on the implementation of the common foreign and security policy – annual report 2024 and on the implementation of the common security and defence policy – annual report 2024,

– having regard to Regulation (EU) 2023/657 of the European Parliament and of the Council of 15 March 2023 laying down rules for the exercise of the Union’s rights in the implementation and enforcement of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community and of the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part,

– having regard to its resolution of 23 November 2023 on the implementation of the EU-UK Trade and Cooperation Agreement,

– having regard to the meetings and positions of the EU-UK Parliamentary Partnership Assembly (PPA),

– having regard to the Joint White Paper for European Defence Readiness 2030 of 19 March 2025 (JOIN(2025)0120),

– having regard to its resolution of 12 March 2025 on the white paper on the future of European defence,

– having regard to Sauli Niinistö’s report of 30 October 2024 entitled ‘Safer Together - strengthening Europe’s civil and military preparedness and readiness’,

– having regard to the Commission proposal of 19 March 2025 for a Council Regulation establishing the Security Action for Europe (SAFE) through the reinforcement of European defence industry Instrument (COM(2025)0122),

– having regard to the European Convention on Human Rights,

– having regard to the European Social Charter,

– having regard to International Labour Organization (ILO) Conventions and Protocols, in particular the ILO’s fundamental instruments,

– having regard to Rule 55 of its Rules of Procedure, as well as Article 1(1)(f) of, and Annex 3 to, the decision of the Conference of Presidents of 11 December 2024 on the procedure for granting authorisation to draw up own-initiative reports,

– having regard to the opinions of the Committee on Budgets, Committee on Economic and Monetary Affairs, Committee on Employment and Social Affairs, Committee on the Environment, Climate and Food Safety, Committee on Industry, Research and Energy, Committee on the Internal Market and Consumer Protection, Committee on Transport and Tourism, Committee on Fisheries, Committee on Culture and Education and the Committee on Civil Liberties, Justice and Home Affairs,

– having regard to the report of the Committee on Foreign Affairs and the Committee on International Trade (A100000/2025),

A. whereas the EU and the UK, as part of the same continent and bound by shared values, are facing a serious volatile global security situation marked by rising geopolitical tensions; whereas they have demonstrated the political determination to work together and continue to be strong partners in addressing global challenges and security threats, most visibly in supporting Ukraine to defend itself against Russia’s aggression;

B. whereas multilateralism and free trade are core principles of both the EU and the UK; whereas the TCA provides the necessary legal certainty to foster trade and promote smooth cooperation;

C. whereas the governance structures established under the TCA, including the Partnership Council and other joint bodies, have functioned effectively, with over 35 meetings held in 2024 to monitor the implementation of the Agreement;

D. whereas the TCA covers areas such as trade, energy, fisheries, transport, judicial and law enforcement cooperation, and social security coordination, providing a comprehensive framework and ensuring a level playing field;

E. whereas the TCA does not include a cooperation arrangement on foreign, security and defence policy; whereas both the EU and the UK recognise the value of structured cooperation in these areas, especially given the current geopolitical challenges; whereas such cooperation would strengthen European security, resilience and prosperity for all citizens;

F. whereas the Withdrawal Agreement and the TCA constitute a common framework for the UK’s relationship with the EU; whereas both agreements have been ratified by the EU and the UK and are legally binding treaties under international law; whereas the relationship between the EU and the UK must be based on full respect for and the effective application of these international commitments;

G. whereas the implementation of the TCA is directly linked to the full implementation of the Withdrawal Agreement; whereas its full implementation was delayed while the EU and the UK were finding common solutions to the practical challenges created in the implementation of the Protocol on Ireland / Northern Ireland resulting from Brexit;

H. whereas the Windsor Framework, concluded in 2023, addresses the practical challenges that have arisen in the operation of the Protocol on Ireland / Northern Ireland over the first years of its implementation and creates legal certainty, therefore, paving the way for full implementation; whereas the Windsor Framework covers a wide range of areas, such as customs, agri-food, medicines, State aid, VAT and excise duties;

I. whereas the conclusion of the Windsor Framework as well as the UK Prime Minister’s pledge to ‘reset’ the UK’s relationship with the EU in July 2024 opened a new chapter in relations between the EU and the UK;

J. whereas the first EU-UK Summit, scheduled for 19 May 2025, is expected to provide an impetus for exploring opportunities to deepen the EU-UK partnership in a mutually beneficial manner, with security and defence likely to be a key area of focus;

K. whereas the importance of transparency in international trade and investment is to the benefit of all stakeholders and parties; whereas a predictable commercial environment that fosters trade and investment between the EU and the UK is welcome;

L. whereas it is the general assessment of the Commission that the TCA is a modern and comprehensive agreement, reflecting the EU’s interests on trade and cooperation, while, at the same time, preserving the red lines that were established by the EU institutions and the Member States during the UK’s withdrawal process; whereas for the years 2021 to 2024, the Commission, in its annual implementation reports, established that, overall, the trade arrangements for goods and services established in the TCA have functioned well, despite minor implementation issues;

M. whereas under the TCA, service suppliers or investors from the EU must not be treated any less favourably than UK operators in the UK and vice versa; whereas the non-discrimination principle applies to a wide range of economic activities, including the provision of services, the establishment of businesses and the protection of intellectual property rights;

N. whereas the UK applies its sponsorship system for work visas to EU service providers, and as a result, a UK employer wanting to employ an EU worker needs to be licenced by the UK Home Office and then assign a certificate of sponsorship to the EU worker, and pays fees for that worker to be able to apply for a visa (with additional fees);

O. whereas UK public procurement markets remain open to EU bidders and vice versa on an equal footing; whereas both parties must ensure that the procurement process is fair, transparent and open to competition; whereas the UK and the EU have also agreed to maintain their existing procurement commitments under the World Trade Organization’s (WTO) Agreement on Government Procurement, which further opens up their public procurement markets to businesses from other countries;

P. whereas the TCA is the only free trade agreement concluded by the EU establishing zero tariffs and zero quotas on all goods that comply with the appropriate rules of origin; whereas trade statistics for the period since the TCA’s entry into force demonstrate that trade flows between the EU and the UK have been negatively impacted by the UK’s withdrawal; whereas trade between the UK and the EU in goods has remained stagnant; whereas the year 2024 confirmed that the EU’s trade in goods and services with other trading partners has grown significantly more than its trade with the UK over a comparable period;

Q. whereas, for the further implementation of the TCA, particular monitoring efforts should be focused on possible regulatory divergences that will increase over time; whereas comprehensive regulatory cooperation between the parties is of the utmost importance; whereas it is a positive sign that only two relevant official complaints were received from stakeholders about the implementation of the TCA through the Commission’s online tool during 2024; whereas the European institutions continue to engage regularly with stakeholders to discuss the practical aspects of the implementation of the TCA;

R. whereas, in terms of the EU’s internal implementation process of the TCA, the EU co-legislators completed the necessary regulatory framework by adopting Regulation (EU) 2023/657 of 15 March 2023 laying down rules for the exercise of the Union’s rights in the implementation and enforcement of the Withdrawal Agreement and the TCA;

Main conclusions

1. Highlights that the EU and the UK are close like-minded partners and allies, sharing common values and facing a common volatile security situation in Europe and its neighbourhood;

2. Recognises the UK’s significant role in the security and stability of the European continent; insists on the need for geographical coherence to ensure Europe’s security and stability and the resilience of the European industrial base;

3. Recalls that the EU-UK relationship is based on full respect for, and the faithful and timely implementation of, the Withdrawal Agreement, including the Windsor Framework, and the TCA;

4. Underlines that the TCA is one of the most ambitious and comprehensive trade agreements which the EU has concluded with a non-EU country; stresses, however, that while it does not and cannot be a substitute for EU membership and the corresponding access to the single market and the Customs Union, it nonetheless holds significant potential for future cooperation;

5. Underlines the importance of assessing and addressing potential challenges in the application of the Withdrawal Agreement and the TCA as early as possible, in order to avoid delays and issues in their application;

6. Welcomes that the implementation of the TCA continues to progress smoothly with all commitments due in 2023 and in 2024 either completed or on track; calls on the Commission to continue closely monitoring the correct application of the TCA;

7. Underlines the specific situation of Northern Ireland, due to its unique position with access to both the EU and UK internal markets, as a result of the Protocol on Ireland / Northern Ireland, which was concluded in order to safeguard the Good Friday Agreement despite the UK’s withdrawal from the EU; calls for the full, timely and faithful implementation of all the elements of the Windsor Framework in order to ensure lasting benefits as well as certainty and predictability for businesses and people in Northern Ireland, protect the all-island economy, safeguard the Good Friday Agreement in all its dimensions, and ensure smooth trade and cooperation, as well as protecting the integrity of the single market and the Customs Union; recalls that the EU has reacted quickly to implement the Windsor Framework and now expects the UK to promptly fully and faithfully implement its part thereof;

8. Calls for deepening the EU-UK partnership and fully exploiting the potential of the TCA in areas of mutual interest;

9. Regrets that the TCA does not include cooperation in the fields of foreign policy, security and defence; welcomes therefore the establishment of the biannual Foreign Policy Dialogue and the renewed commitment of the UK to engage with the EU on opportunities for closer and more permanent cooperation on foreign policy and security;

10. Calls for the EU and the UK to establish more structured and institutionalised cooperation on foreign, security and defence matters – aligned with the 2019 Political Declaration – and achieve this by means of a comprehensive partnership to address shared geopolitical security threats;

Institutional framework

11. Notes with satisfaction the effective functioning of the TCA joint bodies; calls for the continued transparency of their work;

12. Highlights the resumption of the EU-UK PPA in March 2025 after the 2024 European and UK elections; stresses its role in providing parliamentary oversight and scrutiny of the TCA implementation; calls on the Partnership Council to consider PPA recommendations; emphasises the importance of the continued participation of Northern Ireland, Scotland and Wales as observers;

13. Welcomes civil society engagement in TCA implementation; highlights the well-balanced representation in the EU Domestic Advisory Group (DAG) and its valuable recommendations; calls on the Partnership Council to continue considering the diverse views of civil society;

Trade in goods

14. Recalls that the TCA provides a comprehensive and ambitious basis for the relationship between the parties, in particular for EU-UK trade, while ensuring a level playing field for fair competition and sustainable development; recalls that the TCA is the most unique free trade agreement in the history of the EU, as it focuses on limiting divergence rather than promoting convergence between trading partners; recalls that the TCA is also unique as it provides for zero tariffs and zero quotas for EU-UK trade;

15. Reiterates that the TCA is the delicate outcome of long and difficult negotiations and that it should therefore be fully implemented in good faith, as should the Withdrawal Agreement, in particular the Windsor Framework, for the mutual benefit of both parties; calls on both parties to make full use of the TCA’s huge potential to facilitate EU-UK trade to the greatest extent possible, while bearing in mind that the advantages of membership in terms of access to the EU single market and to the Customs Union, as well as of participation in other common and flanking policies, cannot, under any circumstances, be replicated through a free trade agreement;

16. Takes note of the Commission’s assessment that overall, the arrangements regarding trade in goods established in the TCA have been effective and functioned smoothly, although certain implementation difficulties have persisted;

17. Reiterates that the EU and the UK should cooperate closely on the subject of customs, including by ensuring an effective exchange of information, constructive dialogue and effective methods of cooperation between customs administrations, with the aim of simplifying clearance processes in order to minimise administrative and financial costs for all stakeholders;

18. Takes note that the UK Government could reduce barriers to trade with the EU by committing to voluntary and dynamic alignment across key sectors; welcomes the UK Government’s commitment to negotiate a comprehensive Sanitary and Phytosanitary (SPS) agreement with the EU, as such an agreement would reduce the administrative and financial burdens on both sides and facilitate EU-UK agri-food trade, including trade between Great Britain and Northern Ireland;

19. Reiterates the need for enhanced cooperation between the EU and the UK to maintain the current, fair and rules-based international trade order; calls, in this regard, for additional joint efforts in working towards an inclusive and comprehensive reform of the WTO, answering current and future challenges in a deeply interlinked world, and actively working against any new danger of divisions in the global political and economic order, as well as unilateral and unjustified trade measures and tariffs that have hit both the EU and the UK recently;

Services, digital trade and investment

20. Takes note of the Commission’s assessment that the implementation of the TCA in the areas of services and investment, digital trade, intellectual property, public procurement and small and medium-sized enterprises has generally proceeded smoothly, with no major issues except for the question of the application of the UK’s sponsorship system for work visas to EU service providers;

Level playing field and competition policy

21. Reiterates that the UK should acknowledge the complications that would stem from any unnecessary systematic regulatory divergence, in particular for the protection of employment and social rights, the environment, personal data, State aid, digital trade and taxation, which would only create additional issues as regards level playing field commitments in the TCA, as well as for EU and UK businesses and EU-UK trade;

22. Calls on the Commission to continue to closely monitor regulatory divergences in the UK that could pose a risk of non-compliance with the TCA, notably in areas relevant to the level playing field such as subsidy control, taxation, labour and social standards, the environment and the climate; calls on the Commission to provide Parliament with access to the data obtained by publishing annual reports; highlights the particular challenge that regulatory divergence poses for Northern Ireland including in the area of trade, and underscores the need to ensure adequate early warning mechanisms;

Financial services

23. [opinion-giving committees];

Intellectual property, public procurement and small and medium-sized enterprises

24. [opinion-giving committees];

Environment and climate

25. [opinion-giving committees];

Food safety

26. [opinion-giving committees];

Public health

27. [opinion-giving committees];

Consumer protection

28. [opinion-giving committees];

Energy

29. [opinion-giving committees];

Transport

30. [opinion-giving committees];

Fisheries

31. [opinion-giving committees];

Social security coordination

32. [opinion-giving committees];

Participation in Union programmes

33. [opinion-giving committees];

Culture, youth and sport

34. [opinion-giving committees];

Affected regions

35. [opinion-giving committees];

Law enforcement and judicial cooperation in criminal matters

36. [opinion-giving committees];

Cooperation on foreign and security policy

37. Welcomes the strong EU-UK cooperation in response to Russia’s war of aggression against Ukraine, including on sanctions, military, financial and diplomatic support, as well as efforts towards a just and lasting peace determined by Ukraine; commends the UK’s vital contribution to European security, to shaping a strong, unified European response to the war in Ukraine and in convening the ‘coalition of the willing’;

38. Highlights the good EU-UK pragmatic coordination on foreign and security matters to bring stability and prosperity to other regions in the world;

39. Urges the EU and the UK to swiftly establish a Security and Defence Partnership through a joint declaration setting out concrete commitments and launching a structured dialogue to address shared security challenges in Europe, using the maximum potential of enhanced cooperation in this field;

Cooperation in other areas

40. [opinion-giving committees];

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41. Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the governments and parliaments of the Member States and the Government and Parliament of the United Kingdom.