Second Civil Society Forum of the UK-EU Trade and Cooperation Agreement, 7 November 2023: conclusions
Published 15 January 2024
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The second meeting of the Civil Society Forum (CSF) of the Trade and Cooperation Agreement (TCA) between the European Union and the United Kingdom of Great Britain and Northern Ireland took place in London in a hybrid format on 7 November 2023.
The meeting was co-chaired by Dunstan Hadley (Head of Strategic Communications and Engagement, EU Directorate, Foreign, Commonwealth and Development Office) for the UK and Ignacio Iruarrízaga-Diez (Head of Unit, Europe and Eastern Neighbourhood, Directorate General Trade, European Commission) for the EU.
Between 100 and 150 (online and in person) UK and EU representatives from business, trade unions and other non-governmental organisations followed and participated in the CSF.
The agenda included: trade in goods, level playing field and regulatory cooperation, energy and climate change, and trade in services.
1. Introduction
The EU and UK co-chairs welcomed the participants and thanked the team of officials for organising the Forum. They noted that progress has been made in the relationship between the UK and EU since the last CSF and reiterated their commitment to maximising the opportunities provided by the TCA. The Parties also recalled the importance of the role of the CSF and Domestic Advisory Groups (DAGs) in the implementation of the Agreement.
2. Trade in goods
Participants raised a range of issues relating to customs, rules of origin, technical barriers to trade, and sanitary and phytosanitary measures.
As a general point, participants stressed the importance of increased communication, consultation, and guidance to support businesses and end consumers. Specific policy issues included were rules of origin, particularly the 2024 rules for electric vehicles; the UK’s Border Target Operating Model; regulatory divergence on product safety rules, continued UK recognition of CE product labelling, seed potatoes, and class B live bivalve molluscs. Participants also discussed supply chain initiatives the EU’s Carbon Border Adjustment Mechanism and UK carbon leakage policy. There were additional calls for guidance on customs issues, and DAG members requested a scaling up of customs infrastructure. Stakeholders raised burdens on SMEs from regulatory initiatives, product safety and market surveillance, the EU’s Deforestation Regulation, the UK’s Border Target Operating Model, trade in medicinal products, and various marking and labelling issues.
Participants welcomed the establishment of the Technical Barriers to Trade Working Groups and urged them to pursue ambitious outcomes.
3. Level playing field and regulatory cooperation
Participants welcomed the UK having removed the sunset clause from the Retained EU Law (Revocation and Reform) Act, while still noting their concerns about the potential impact of the Act on the level playing field. Further issues noted were concerns with the UK’s Strikes (Minimum Services Levels) Act, employment regulations following the REUL Act, UK Freeports and Investment Zones, and the EU’s Corporate Sustainability Due Diligence Directive.
Participants noted the importance of regulatory cooperation on areas of mutual interest including batch testing of medicinal products, health and safety standards, financial services, and chemicals regulation. They also noted the importance of engaging with stakeholders ahead of major legislative changes.
4. Energy and climate change
Participants welcomed the North Seas Energy Cooperation (NSEC) Memorandum of Understanding and discussed the importance of UK-EU cooperation on energy and climate, given the interconnected nature of both markets and the renewable potential in the North Seas. Participants recognised the value of the TCA Energy Title in underpinning this cooperation and highlighted areas of particular interest, including continuing engagement through the North Seas Energy Cooperation, developing more efficient electricity trading arrangements. On carbon markets, participants enquired about the possibility of linking the emissions trading systems of both parties, as well as ensuring interoperability between the UK’s and EU’s respective carbon markets.
On the climate agenda, participants noted the importance of the EU and UK achieving their Net Zero commitments. Participants also highlighted areas where the UK and EU should remain engaged within the climate agenda including transport decarbonisation, maritime spatial planning, sustainable agriculture, and animal welfare.
5. Trade in services
Participants welcomed the Memorandum of Understanding on regulatory cooperation in financial services. They also noted the value of trade in services and wider mobility between UK and EU markets. They raised issues including the recognition of professional qualifications, facilitating digital trade and cross border data flows, mobility of people, and simplifying visa requirements, particularly regarding associated costs and processing times. Contributors highlighted the value of youth mobility schemes for supporting young people to travel and work (while recognising that these are not a TCA issue). Several participants also praised the recent progress on UK participation in the Horizon Europe and Copernicus research programmes, noting the value this has across services sectors.
6. Conclusions from DAG chairs and co-chairs
The UK and EU DAG chairs thanked the UK and EU teams of officials for organising the forum and reflecting the participant feedback from last year. They noted that the second CSF felt more interactive and positive.
Both chairs highlighted the genuine appetite to work together, with shared commonalities that should promote further collaboration by maximising the possibilities of the TCA. This was evidenced by the jointly agreed UK/EU DAG statement.
The chairs ended with a call for the UK and EU to use the DAGs and their sectoral knowledge to ensure that implementation of the TCA was a win/win for both parties.
The CSF co-chairs again thanked the participants for their engagement and noted the publication of the joint statement. Both chairs re-stated their aim to maximise the TCA and to see the CSF as one element of a regular, ongoing dialogue between parties.