Brexit is recognized as one of the most publicized political events in contemporary history. It newly defined the relationship between the United Kingdom (UK) and the European Union (EU). The Brexit Withdrawal Agreement occupies a central role in the transformation that Brexit represents. The Withdrawal Agreement attached rules to the manner in which the UK was to leave the EU and what rules were applicable afterward.
Introduction to the Brexit Withdrawal Agreement
The Brexit Withdrawal Agreement is the legal agreement that outlines the terms for the UK’s exit from the EU. It was signed in January 2020 and came into effect on 31 January 2020. The agreement allowed for an orderly exit from the EU, helping to avoid a disorderly exit. The agreement covered issues relating to citizens’ rights, financial arrangements, and trading arrangements, and the arrangements relating to Northern Ireland were included, which were appropriate under the Brexit Withdrawal Agreement and a potential ‘no-deal Brexit.’ If there had not been a Withdrawal Agreement, a potential ‘no-trade deal’ would have been agreed to with significant consequences.
Why Was the Brexit Withdrawal Agreement Needed?
The UK voted to exit the EU in the 2016 referendum. However, leaving such a large union is not as straightforward as saying goodbye. There were a number of components that had to be worked out. The Withdrawal Agreement was necessary to:
- Protect EU citizens living in the UK and UK citizens living in the EU.
- Establish rules relating to trade and borders.
- Determine how much money the UK was still required to pay to the EU.
- Prevent a hard border between Northern Ireland (part of the UK) and the Republic of Ireland (which is a member of the EU).
The Withdrawal Agreement alleviated uncertainty and gave both sides a clear guide forward.
Key Components of the Withdrawal Agreement
The Brexit Withdrawal Agreement has a number of key components. Let’s examine them one by one.
1. Citizens’ Rights
The UK and the EU both wanted to ensure that people would not suddenly be left or rightless.
- EU citizens living in the UK would be able to continue to live, work, and study in the UK.
- UK citizens in EU countries were granted protections of a similar nature.
- These rights were protected in law so people could have a degree of certainty about their future.
2. The Financial Settlement (The “Divorce Bill”)
British obligations to the European Union budget. The agreement stated that the UK would still make the payments it owed. This was termed the “divorce bill.”
- The bill was estimated to be in the region of £30-39 billion.
- The money would cover obligations such as EU projects, pensions, and loans.
3. The Northern Ireland Protocol
On the most sensitive issue, Northern Ireland, the potential tension of a hard border with checks between Northern Ireland (part of the UK) and the Republic of Ireland (an EU member) could have created political turbulence.
- The protocol established trade rules for Northern Ireland aligned to EU rules.
- Goods crossing from the remainder of the UK into Northern Ireland needed to be checked.
- This avoided a hard border on the island of Ireland but created trade checks in the Irish Sea.
4. Transition Period
The agreement established a transition period from 1st February until 31st December 2020.
During this period, the UK was no longer a member of the EU but was still required to follow EU rules and regulations. This transitionary period gave time for businesses and people to become accustomed to changes.
5. Governance and Legal Oversight
The agreement also gave details of how disputes would be managed. A joint committee was established to supervise the deal. The European Court of Justice (ECJ) retained a measure of power, especially in relation to EU citizens’ rights.
How Was the Withdrawal Agreement Approved?
The Withdrawal Agreement had a long political journey. The withdrawal agreement was negotiated by Theresa May’s government but rejected by parliament several times. Boris Johnson withdrew renegotiated parts, particularly the Northern Ireland Protocol. In January 2020, the UK Parliament approved the deal. 31 January 2020, the UK formally left the EU with this deal.
Difference Between the Withdrawal Agreement and Trade Deal
There is a huge confusion with the Trade Deal or UK-EU Trade and Cooperation Agreement (TCA). The agreement was not the same. The Withdrawal Agreement was about how the UK left the EU and rules governing that exit. The Trade and Cooperation Agreement was about the future relationship—trade, security, and cooperation.
Put simply:
Withdrawal Agreement = How the UK left
Trade Deal = How the UK and EU will work together after Leaving
Effect of the Withdrawal Agreement
The Brexit withdrawal has a profound influence on politics, trade, and everyday life.
- For Citizens: EU citizens residing in the UK and UK citizens in the EU have more certainty about their rights. They remain able to live and work where they were living before Brexit.
- For Businesses: When the UK and the EU implemented new rules and checks related to trading goods between them, companies faced additional hurdles. Northern Ireland businesses gained access to both UK and EU markets but with an additional layer of bureaucracy.
- For Politics: The Northern Ireland Protocol continues to be politically fraught. Some groups in Northern Ireland feel that it separates them from the rest of the UK. Negotiations are still occurring to address these tensions.
Current Status of the Withdrawal Agreement
As it currently stands, the Withdrawal Agreement remains in place, but changes in and negotiations around the Northern Ireland Protocol are ongoing. In 2023, the UK and the EU adopted the Windsor Framework, which made significant administrative changes to various elements of the Protocol to ensure the flow of trade between Northern Ireland and the rest of the UK is as seamless as possible. This demonstrates that Brexit isn’t a one-off event but an ongoing journey.
Why the Withdrawal Agreement Is Important
The Brexit Withdrawal Agreement is important because it:
- Provided citizens and businesses certainty.
- Avoided a no-deal Brexit catastrophe.
- Preserved peace and stability in Northern Ireland.
- Provided the starting point for the future relationship between the UK and the EU.
- Had the Withdrawal Agreement not been reached, the UK’s exit may have been disorderly with potentially massive political and economic consequences.
