UK EU TCA Implementation

12 Oct 2022 | Committee report linked

The regulators are struggling to recruit and retain the skills they need to regulate effectively after EU Exit. Having left the EU, the regulators need additional staff to deliver their new and expanded responsibilities. CMA is competing with the private sector to recruit and retain competition lawyers and economists, while both FSA and HSE are struggling to recruit experienced toxicologists in sufficient numbers. A shortage of veterinarians to assure food safety and animal welfare in abattoi...

The regulators are struggling to recruit and retain the skills they need to regulate effectively after EU Exit. Having left the EU, the regulators need additional staff to deliver their new and expanded responsibilities. CMA is competing with the private …

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12 Oct 2022 | Committee report linked

The loss of access to EU systems and lack of progress in taking forward the regulatory cooperation provisions set out in the Trade and Cooperation Agreement increase regulatory risks and costs. On leaving the EU, the regulators lost access to EU data sharing and cooperation arrangements. CMA can no longer share confidential information with the European Commission or member states in merger, competition or consumer enforcement cases, impacting its ability to effectively enforce competition la...

The loss of access to EU systems and lack of progress in taking forward the regulatory cooperation provisions set out in the Trade and Cooperation Agreement increase regulatory risks and costs. On leaving the EU, the regulators lost access to …

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12 Oct 2022 | Committee report linked

Having left the EU, the regulators need additional staff to deliver their new and expanded responsibilities. CMA told us that it has always been in competition with the private sector for skilled competition lawyers and economists, and the expansion of its role after EU Exit means the scale of this challenge has increased.15 FSA and HSE are both struggling to recruit skilled toxicologists to carry out toxicological assessments in the chemicals and food regulatory regimes.16 Difficulties recru...

Having left the EU, the regulators need additional staff to deliver their new and expanded responsibilities. CMA told us that it has always been in competition with the private sector for skilled competition lawyers and economists, and the expansion of …

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12 Oct 2022 | Committee report linked

On leaving the EU, the regulators lost access to EU data sharing and cooperation arrangements. CMA can no longer share confidential information with the European Commission or member states in merger, competition or consumer enforcement cases.28 FSA has also lost full access to the EU’s Rapid Alert System on Food and Feed (RASFF) which provides member states with information on food safety incidents. It no longer has access to ‘real time’ data on all incidents, receiving information only on U...

On leaving the EU, the regulators lost access to EU data sharing and cooperation arrangements. CMA can no longer share confidential information with the European Commission or member states in merger, competition or consumer enforcement cases.28 FSA has also lost …

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12 Oct 2022 | Committee report linked

The regulators told us they are taking action to mitigate issues around access to data. For example, in competition and consumer law enforcement, CMA can investigate itself and use its own powers to gather information.31 Despite no longer being able to share confidential data, it also told us that it has good working relationships with the European Commission and has launched three cases in parallel.32 To monitor food safety, FSA has developed a horizon-scanning data application that extracts...

The regulators told us they are taking action to mitigate issues around access to data. For example, in competition and consumer law enforcement, CMA can investigate itself and use its own powers to gather information.31 Despite no longer being able …

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12 Oct 2022 | Committee report linked

The EU-UK Trade and Cooperation Agreement (TCA) includes a provision to establish a separate agreement on competition enforcement cooperation (including the 28 Q 52, 29 Q 52, C&AG’s Report, para 2.17 30 Q 57–58 31 Q 56 32 Q 65 33 Q 54 34 Q 52 35 Qq 57–58 36 REE0002 12 Regulating after EU Exit sharing of confidential data). CMA told us this agreement has not yet been agreed, and progress on this would be welcome as it would remove a significant barrier to effective competition enforcement.37 T...

The EU-UK Trade and Cooperation Agreement (TCA) includes a provision to establish a separate agreement on competition enforcement cooperation (including the 28 Q 52, 29 Q 52, C&AG’s Report, para 2.17 30 Q 57–58 31 Q 56 32 Q 65 …

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12 Oct 2022 | Committee report linked

Following EU Exit there is already some divergence in regulatory approach between the UK and EU. The regulators gave us examples where divergence was happening or could happen due to differences in opinion on what the evidence said or how this related to the UK. For example, the CMA told us that it had taken the decision to block a global merger of companies that sell equipment for container shipping which has been conditionally cleared by the European Commission, and that its decision had be...

Following EU Exit there is already some divergence in regulatory approach between the UK and EU. The regulators gave us examples where divergence was happening or could happen due to differences in opinion on what the evidence said or how …

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9 Feb 2022 | Committee report linked

Government intends to introduce full import controls in phases from January 2022, but much work remains to be done. The UK originally intended to introduce import controls on goods entering Great Britain from the EU when the transition period ended in January 2021. The government has delayed introducing these controls three times and now intends to introduce them in phases between January 2022 and November 2022. Departments have made progress towards introducing the systems, infrastructure an...

Government intends to introduce full import controls in phases from January 2022, but much work remains to be done. The UK originally intended to introduce import controls on goods entering Great Britain from the EU when the transition period ended …

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9 Feb 2022 | Committee report linked

Government’s arrangements for goods arriving from the EU is untested and could be exploited, increasing regulatory and fiscal risks. Governments operate import controls for several reasons including: to ensure goods meet relevant standards; to prevent smuggling and illicit activity; and to comply with international obligations. Defra is introducing pre-notification in advance of physical checks and may take a pragmatic approach as people learn the system. HMRC accepted that the sooner import ...

Government’s arrangements for goods arriving from the EU is untested and could be exploited, increasing regulatory and fiscal risks. Governments operate import controls for several reasons including: to ensure goods meet relevant standards; to prevent smuggling and illicit activity; and …

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9 Feb 2022 | Committee report linked

In addition to the new customs requirements, some industries can find themselves subject to extra controls depending on the company’s individual supply chain and the industry they are in – some goods will find themselves much more regulated than others.23 Examples include: • Exports to the EU of live animals, fresh meat and fish and plants must, since 1 January 2021, go through sanitary and phyto-sanitary (SPS) checks for diseases, pests and other contaminants.24 Traders in these goods will h...

In addition to the new customs requirements, some industries can find themselves subject to extra controls depending on the company’s individual supply chain and the industry they are in – some goods will find themselves much more regulated than others.23 …

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9 Feb 2022 | Committee report linked

The EU introduced import controls on goods entering the EU from the UK at the end of the transition period from 1 January 2021. The UK government originally planned to introduce full import controls on the same date but has subsequently delayed introducing these controls three times.40 It now intends to introduce full import controls in phases between January 2022 and November 2022, beginning with full customs controls and pre- notification of SPS goods in January 2022.41 We queried whether t...

The EU introduced import controls on goods entering the EU from the UK at the end of the transition period from 1 January 2021. The UK government originally planned to introduce full import controls on the same date but has …

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9 Feb 2022 | Committee report linked

HMRC told us that its main trader concerns related to small businesses. It had a high level of confidence that large traders, which are responsible for about 85% of the value of imports from the EU to the UK, would be ready for January 2022.60 Its focus was therefore on improving the readiness of the remaining 15%, which is around 90,000 smaller traders, 41,000 of which carry out what HMRC consider to be a material level of trade (between £50,000 and £1,500,000). Many traders had already subm...

HMRC told us that its main trader concerns related to small businesses. It had a high level of confidence that large traders, which are responsible for about 85% of the value of imports from the EU to the UK, would …

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9 Feb 2022 | Committee report linked

The NAO report notes that, since the end of the transition period, the UK government has chosen to prioritise the flow of goods over compliance, but that, after the introduction of import controls, departments will no longer be able to prioritise flow to the same extent and will need to put in a new compliance regime to manage the fiscal and regulatory risks of goods crossing the border.69 Dr Jerzewska told us that there were some requirements that were already in place, such as in relation t...

The NAO report notes that, since the end of the transition period, the UK government has chosen to prioritise the flow of goods over compliance, but that, after the introduction of import controls, departments will no longer be able to …

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29 Apr 2021 | Committee report linked

As this Report highlights, the TCA has introduced considerable trade friction for seafood and meat exporters. We welcome the Government’s willingness to engage with the EU to seek an equivalence mechanism on agri-foods. The Government should engage with the EU and adopt a pragmatic stance in the pursuit of a veterinary partnership agreement that reduces the non-tariff measures adversely affecting British seafood and meat exporters. In the meantime, the Government should take steps to ensure t...

As this Report highlights, the TCA has introduced considerable trade friction for seafood and meat exporters. We welcome the Government’s willingness to engage with the EU to seek an equivalence mechanism on agri-foods. The Government should engage with the EU …

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11 Dec 2020 | Committee report linked

We call on the UK government to publish the outstanding guidance required for the logistics industry as a matter of urgency. In light of these delays, the UK Government should also explore what additional measures will be needed to effectively, and at such late notice, communicate this guidance to the sector and what additional financial support the sector may require. (Paragraph 90) Trade with non-EU countries

We call on the UK government to publish the outstanding guidance required for the logistics industry as a matter of urgency. In light of these delays, the UK Government should also explore what additional measures will be needed to effectively, …

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2 Dec 2020 | Committee report linked

In the event of major delays at the short Channel crossings, the Cabinet Office told us that there are plans to prioritise certain goods, such as exports of day-old chicks and fish for human consumption, and that additional freight capacity has been procured for the import of critical goods.73 The Cabinet Office said it is developing a border impact centre to manage disruption but is facing issues in securing access to data held by other government departments. The infrastructure in Kent to h...

In the event of major delays at the short Channel crossings, the Cabinet Office told us that there are plans to prioritise certain goods, such as exports of day-old chicks and fish for human consumption, and that additional freight capacity …

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30 Jul 2020 | Committee report linked

If the UK leaves the transition period provided for by the UK’s withdrawal agreement with the EU at the end of 2020 without a clear trading arrangement with the EU, the relaxation of competition law may again be called for. The Government should explain whether another relaxation of competition law may be required in the event of a disruptive exit from the transition period, based on lessons learned from the COVID-19 pandemic. (Paragraph 118) 52 COVID-19 and food supply

If the UK leaves the transition period provided for by the UK’s withdrawal agreement with the EU at the end of 2020 without a clear trading arrangement with the EU, the relaxation of competition law may again be called for. …

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