The agreement provides for a transitional period that will last until at least 31 December 2020. During this period, the UK will remain in the EU customs union and internal market, and most of the EU legislation will continue to apply to the UK, but the UK will lose the opportunity to participate in EU legislation and the benefits of free trade agreements with third countries. In order for the UK to continue to benefit from these free trade agreements during the transition period, it will need the agreement of the EU and all third countries. In practice, trade in goods and services between the EU and the UK will therefore remain broadly unchanged during the transitional period. The political statement refers to the autonomy of regulation and decision-making of each bloc and its ability to make equivalency decisions in its own interest. From a British point of view, the latter reference to autonomy is less welcome when it comes to achieving considerable market access in equivalence. If one does not read about the objective of going beyond WTO obligations, there is no explicit reference to an extension of equivalence beyond the existing patch work. In this context, Steven Maijoor, President of the European Financial Markets Authority (ESMA), has already called for a comprehensive and harmonised European regime for trading platforms in third countries. The policy statement also refers to the fact that both parties begin to assess equivalence to each other as soon as possible after the withdrawal, so that they can be completed before the end of the second quarter of 2020. In order to allay the UNITED Kingdom`s concerns about the sudden withdrawal of equivalence, the documents promise “transparency and appropriate consultation in the process of accepting, suspending and withdrawing equivalency decisions.” We can also expect “close and structured cooperation” in regulation and oversight, as well as information exchange and consultation on regulatory initiatives of common interest, both at the political and technical level. It is likely that, in some areas, the ACF may still contribute in one way or another to the European supervisory authorities and their development of post-Brexit policy. The new political declaration sets out the framework for future relations between the European Union and the United Kingdom and reflects the Government`s desire to conclude an ambitious, comprehensive, deep and flexible partnership on trade and economic cooperation with the EU, with a free trade agreement with the EU, in addition to security agreements and other areas of cooperation. In addition, the withdrawal agreement governs the UK`s contributions to the EU budget.
The agreement implies that the UK, as a member, will pay the entire long-term budget until the end of 2020. Both the draft withdrawal agreement and the political declaration have a potentially considerable impact on the British Constitution. Some of the constitutional issues that are likely to arise in each bill on the implementation of the withdrawal agreement are as follows: immediately after the announcement of a revised withdrawal agreement on October 17, 2019, Labour, the Liberal Democrats and the DUP said they could not support the new agreement.  The reception of the agreement in the House of Commons ranged from cold to hostile, and the vote was delayed by more than a month. Prime Minister May has received a motion of no confidence within her own party, but the EU has refused to accept further changes. The NI protocol, known as “backstop,” is supposed to be temporary and applies unless it is replaced by a future relationship agreement that the parties will attempt to reach by December 31, 2020. The protocol provides that the common travel area and North-South cooperation will continue to a large extent as they do today, as well as the internal electricity market (so that some EU legislation on wholesale electricity markets will continue to apply).