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Withdrawal Agreement vs. Trade Deal: Understanding the Difference
Brexit has been one of the most controversial political events in recent history. It has been a source of debate not only in the UK but also globally. Since the vote to leave the European Union (EU), the UK government has been trying to devise a plan to exit the EU while preserving its economy and security. This plan is divided into two parts: the withdrawal agreement and the trade deal. While they are both significant aspects of Brexit, they are not the same. Understanding the difference between the two is essential for anyone following Brexit and its aftermath.
Withdrawal Agreement
The withdrawal agreement is a legal document that outlines how the UK will leave the EU. It covers several topics. Firstly, it provides for a transition period during which the UK will continue to have access to the single market and customs union until December 31, 2020. Secondly, it guarantees the rights of EU citizens living in the UK and vice versa. Thirdly, it sets out how the UK will pay its financial obligations to the EU. Finally, it provides for a solution to the issue of the Irish border.
The withdrawal agreement is a legally binding document and has been ratified by both the UK and the EU. This means that if there is no agreement on the trade deal, the UK will still leave the EU on January 1, 2021.
Trade Deal
A trade deal is a comprehensive agreement between two or more countries that outlines the terms of trade between them. It covers several topics such as tariffs, customs duties, trade barriers, and regulations. The aim of a trade deal is to encourage trade between the countries by removing trade barriers and opening up new markets.
The UK will be negotiating a trade deal with the EU after it leaves the EU. The trade deal will determine the terms of trade between the UK and the EU (as well as other countries). It will affect both goods and services. Given that the EU is the UK`s largest trading partner, having a trade deal with the EU is crucial for the UK`s economy.
Difference between the Withdrawal Agreement and Trade Deal
The primary difference between the withdrawal agreement and the trade deal is that the withdrawal agreement ensures that the UK can leave the EU in an orderly manner. It covers issues such as the transition period, citizens` rights, the financial settlement, and the Irish border. The trade deal, on the other hand, covers the future economic relationship between the UK and the EU.
Another significant difference between the two is that the withdrawal agreement has already been ratified, while the trade deal negotiations are ongoing. The withdrawal agreement is legally binding, meaning that the UK will leave the EU on January 1, 2021, whether a trade deal has been agreed or not.
Conclusion
In conclusion, the withdrawal agreement and trade deal are two different things in the Brexit process. While the withdrawal agreement ensures an orderly exit from the EU, the trade deal will determine the future economic relationship between the UK and the EU. The withdrawal agreement has already been ratified and is legally binding, while the trade deal negotiations are ongoing. With Brexit just around the corner, it is essential to understand the difference between these two critical aspects of the process.
