Cabinet ministers; Credit: © SIP/ Claude Piscitelli

The cabinet of the Luxembourg government met on Sunday 27 December to review the 2,000-page document which forms the post-Brexit trading relationship between the UK and the EU.

Under the chairmanship of Prime Minister Xavier Bettel, the cabinet welcomed the work of the European Commission negotiating team under the leadership of Michel Barnier who has succeeded, after several months of difficult discussions, in concluding what was deemed to be an ambitious and fair agreement with the United Kingdom which is essential to protect the interests of European citizens as well as those of businesses established in the European Union and to pursue cooperation in areas of mutual interest. The cabinet also welcomed the fact that the European Union has been able to maintain its unity with determination throughout the negotiations.

This agreement marks the start of a new economic and social partnership with the United Kingdom which is based on the principles of fair competition and free trade and does not provide for customs duties or quotas and therefore avoids significant trade barriers for goods respecting the appropriate rules of origin. With particular regard to financial services, the parties have agreed to establish structured cooperation, with the objective of establishing a lasting relationship in the interest of financial stability and the protection of consumers and investors, in compliance with the highest international standards.

The cabinet also welcomed the fact that the agreement provides for maintaining high levels of protection, as well as the establishment of a dispute settlement mechanism allowing the application of unilateral rebalancing measures in the event of significant discrepancies which would no longer guarantee the conditions for fair competition.

This agreement will be applied provisionally from 1 January 2021 before being ratified according to the procedures applicable at European Union level.