Other Agreements

1. The CFTA should be supplemented by a range of other international agreements covering, principally, fisheries, law enforcement and judicial cooperation in criminal matters, transport, and energy, as set out below.

Agreement on Fisheries

2. The UK is ready to consider an agreement on fisheries that reflects the fact that the UK will be an independent coastal state at the end of 2020. It should provide a framework for our future relationship on matters relating to fisheries with the EU. This would be in line with precedent for EU fisheries agreements with other independent coastal states. Trade in fisheries products should be covered by the CFTA. Overall, the framework agreement on fisheries should provide a clear basis for an on-going relationship with the EU, akin to the EU’s relationship with other coastal states, one that respects the UK’s status as an independent coastal state and the associated rights and obligations that come with this.

3. Any such framework agreement on fisheries should cover access to fish in UK and EU waters, fishing opportunities and future cooperation on fisheries management, as follows. a. It should set out the scope and process for annual negotiations on access to the parties’ exclusive economic zones and fishing opportunities (total allowable catch and shares). b. Fishing opportunities should be negotiated annually based on the best available science for shared stocks provided by the International Council for Exploration of the Seas (ICES). The UK will no longer accept the ‘relative stability’ mechanism for sharing fishing quotas, which is outdated, based on historical fishing activity from the 1970s. This means that future fishing opportunities should be based on the principle of zonal attachment, which better reflects where the fish live, and is the basis for the EU’s fisheries agreement with Norway. c. Any EU vessels granted access to fish in UK waters in annual negotiations would be required to comply with UK rules and would be subject to licensing requirements including reporting obligations. New fisheries management measures will be notified in good time. d. The UK is committed to acting as a responsible coastal state and to working closely with the EU and its Member States and other coastal states on the sustainable management of shared stocks in line with our international obligations. The UK is, therefore, open to providing, in the agreement on fisheries, for the creation of a forum for cooperation on wider fisheries matters outside of annual negotiations. This could include cooperation on matters to support responsible fisheries management, such as data-sharing, science and control and enforcement. e. It should include provisions for sharing vessel monitoring data and information to deter and eliminate illegal, unreported and unregulated fishing. If annual negotiations provide for access to fish in UK waters, then additional data-sharing would be required for control and enforcement. As part of an agreement on fisheries, the parties could agree to designate additional ports under the rules of the North East Atlantic Fisheries Commission (NEAFC) to ensure each other’s vessels are able to land in those ports. f. It should include arrangements for dispute settlement along the lines common to other fisheries agreements, including provision for the suspension of the agreement on fisheries if necessary.

4. The UK will be negotiating separate fisheries framework agreements with other independent coastal states, notably Norway.

5. The UK Government recognises the interests of the devolved administrations in this area and is committed to working with them in the consideration of any agreement. Agreements on

Aviation

6. The UK and EU should agree a Comprehensive Air Transport Agreement (CATA) to ensure continued connectivity for passengers, and operational and commercial flexibility for industry. The UK and the EU should also agree a Bilateral Aviation Safety Agreement (BASA) to minimise regulatory barriers for the aviation and aerospace industry and maintain high safety outcomes. Comprehensive Air Transport Agreement (CATA)

7. The UK and EU should establish a Comprehensive Air Transport Agreement (CATA) which is consistent with the best international precedents. This should include provisions on liberalised market access for air services on a reciprocal basis, close cooperation to maintain high aviation security standards, and collaboration on air traffic management to ensure interoperability between UK and EU airspace. It should include, but not be limited to, the following areas. a. Traffic rights: the CATA should include, as a minimum, the rights for UK and EU airlines to operate passenger, all-cargo and charter services between points in the UK and points in the EU without restrictions on frequency or capacity. b. Ownership and control: there should be no unnecessary restrictions on the nationality of who can own or effectively control a UK or EU airline making use of the traffic rights in the CATA. c. Modern commercial practices, including code-sharing and wet-leasing: any UK or EU airline should be able to enter into code-sharing arrangements, without restriction, with any airline of the parties, or any airline of a third country, so long as the operating carrier has the necessary traffic rights.

The CATA should also provide for UK and EU airlines to wet-lease from each other, without restriction or time limits, and with minimal administrative burden, on condition of compliance with the relevant safety standards. d. Aviation security: the CATA should provide for the mutual recognition of designations of air carriers transporting cargo on the basis that both sides apply equivalent minimum aviation security standards. It should also include cooperative arrangements between technical experts on the development of aviation security standards, and the right to attend airport inspections. These arrangements should not limit the autonomy of either party to apply more stringent aviation security measures than the baseline where they are deemed necessary and proportionate. e. Air traffic management: the CATA should provide for the mutual recognition of certificates for air navigation service providers and continued cooperation on the functioning of the European Geostationary Navigation Overlay Service (EGNOS).

It should also facilitate cooperation between the UK and EU on the research, development and deployment of new ATM technologies, regulations and network management functions. f. Avoiding trade distortions: Both sides should agree to eliminate all forms of discrimination and unfair practices which would adversely affect the fair and equal opportunity of UK and EU airlines to compete in providing air services, including subsidies. The CATA should also commit the UK and EU to build on current levels of environmental protection to ensure the sustainable development of aviation. Such provisions should not restrict the regulatory autonomy of either side. g. Appropriate governance arrangements. Bilateral Aviation Safety Agreement (BASA)

8. The UK and EU should also establish a Bilateral Aviation Safety Agreement (BASA). This will facilitate the recognition of aviation safety standards and regulatory cooperation between the UK Civil Aviation Authority (CAA) and the European Union Aviation Safety Agency (EASA). The BASA should be in line with existing EU precedent for cooperative aviation safety arrangements with third countries. It should include, but not be limited to, the following areas. a. Minimising regulatory barriers: the BASA should allow for the mutual acceptance of certification processes where possible and limit the duplication of recertification or retesting assessments. b. Scope: both sides should seek to agree a broad range of technical annexes to the BASA, including but not limited to: design certification; product organisation approvals; maintenance organisation approvals; flight simulator qualification; and personnel licensing and training. c. Regulatory cooperation: the BASA should establish measures to facilitate regulatory cooperation, including the provision of information on any significant revisions proposed to aviation safety regulations. The BASA should also provide for the exchange of relevant safety information and data. d. Appropriate governance arrangements.

Energy

9. The UK is open to considering an agreement on energy if it reflects its interests, and as long as it respects the fact that the UK will make independent decisions on its energy policies. An agreement could cover energy trading over the interconnectors between the UK and the EU, carbon pricing, and climate change. Electricity & Gas Trading

10. Electricity is traded over interconnectors that run under the sea between Great Britain and mainland Europe (France, Netherlands, Belgium), and between Great Britain and Northern Ireland and Ireland. Similarly, the UK trades gas over interconnectors with Belgium, the Netherlands and Ireland.

11. The UK has undertaken domestic preparations to enable trade in electricity and gas over the interconnectors to continue from 1 January 2021 without an energy agreement. Existing arrangements, including work carried out with regulators and Transmissions System Operators, will ensure security of energy supply is unaffected. In Northern Ireland, the Ireland/Northern Ireland Protocol to the Withdrawal Agreement provides the basis for the continued operation of the Single Electricity Market.

12. An energy agreement covering electricity and gas trading could improve these baseline arrangements by: a. facilitating efficient cross-border electricity and gas trade; b. facilitating technical cooperation between electricity and gas network operators and organisations in the planning and use of energy infrastructure connecting their systems; and c. supporting the integration of renewable power and investment in decarbonisation projects in the north seas.

Carbon Pricing

13. The UK is committed to carbon pricing as a decarbonisation tool. We will establish a UK system that supports our world leading climate ambition, including net zero greenhouse gas emissions by 2050. This will enable UK energy generators, heavy industry and aviation to decarbonise their operations in an efficient and cost-effective manner.

14. In the context of our approach to carbon pricing, the UK would be open to considering a link between any future UK Emissions Trading System (ETS) and the EU ETS (as Switzerland has done with its ETS), if it suited both sides’ interests. Any such agreement would need to recognise both parties as sovereign equals with our own domestic laws. It could: a. provide for mutual recognition of allowances, enabling use in either system; b. establish processes through which relevant information will be exchanged; and c. set out essential criteria that will ensure that each trading system is suitably compatible with the other to enable the link to operate.

Climate Change

15. The UK is committed to tackling climate change and as COP26 President will work with all partners to deliver on the Paris Agreement.

16. This agreement should reaffirm both sides’ commitments to tackling climate change under the Paris Agreement. It should also recognise both parties’ right to regulate to meet our respective climate goals.

Mobility and Social Security Coordination

17. Social security coordination can remove barriers and support mobility of labour between countries. Arrangements that provide healthcare cover for tourists, short-term business visitors and service providers, that allow workers to rely on contributions made in two or more countries for their state pension access, including uprating principles, and that prevent dual concurrent social security contribution liabilities, could be good for business and support trade. These arrangements could benefit UK nationals and EU citizens travelling or moving between the UK and the EU in future.

18. The UK is ready to work to establish practical, reciprocal provisions on social security coordination. Any agreement should be similar in kind to agreements the UK already has with countries outside the EU and respect the UK’s autonomy to set its own social security rules. These arrangements should support mobility by easing the process for those working across borders, including underpinning the reciprocal arrangements on the temporary entry and stay for business purposes (‘Mode 4’ provisions).

Participation in Union Programmes

19. The UK is ready to consider standard third country participation in certain Union programmes where it is in the UK’s and the EU’s interest that we do so.

20. The UK will consider a relationship in line with non-EU Member State participation with the following programmes: Horizon Europe, Euratom Research and Training, and Copernicus. The UK will consider service access agreements for the following programmes: EU Space Surveillance and Tracking, and the European Geostationary Navigation Overlay Service.

21. The UK will consider options for participation in elements of Erasmus+ on a timelimited basis, provided the terms are in the UK’s interests.

22. Any agreements relating to Union programmes should contain fair terms for UK participation. This should include fair treatment of participants, a fair and appropriate financial contribution, provisions allowing for sound financial management by both parties, and appropriate governance and consultation.

23. The UK also notes its specific ongoing commitment to delivering the PEACE PLUS programme. The UK will deliver the PEACE PLUS programme as part of the UK’s unwavering commitment to uphold the hard-won peace in Northern Ireland. The UK will work with the European Commission and the Irish Government to shape the programme, maintaining the current funding proportions for the future programme.

Nuclear Cooperation Agreement

24. The UK and European Atomic Energy Community (Euratom) should conclude a Nuclear Cooperation Agreement (NCA) for cooperation on civil nuclear matters. The NCA should cover compliance with international nuclear safeguards, safety and security standards, and will facilitate civil nuclear trade. It should also provide for commitments in respect of technical cooperation and information-sharing, and facilitate cooperation in related areas such as nuclear research and the supply of medical radioisotopes.

25. The NCA should facilitate civil nuclear trade while maintaining the parties’ commitments to non-proliferation. As such it should deliver the following. a. On safeguards, a mechanism to enable cooperation between the Office for Nuclear Regulation (ONR) and Euratom regulators, and provisions that give mutual assurances, in line with standard NCA practice, that traded nuclear material will remain subject to safeguards. b. On nuclear transfers, agreement to facilitate civil nuclear trade while maintaining the parties’ commitments to non-proliferation, by providing for a comprehensive framework for transfers of a range of nuclear materials and related items, including procedures for retransfers to third countries.

c. On nuclear research, a long-term legal basis for future cooperation in civil nuclear research and development in both fission and fusion, including advanced nuclear technologies and waste management. d. On the supply of medical radioisotopes, cooperation through the exchange of information. The NCA should facilitate mutual cooperation, information exchange and transparency between the UK and Euratom on the supply of radioisotopes to ensure that the global supply is monitored effectively, to support the development of novel technologies and treatments, and to minimise the risks of shortage of supply. e. On information sharing and technical cooperation, openness and transparency through a commitment to the appropriate and proportionate sharing of information, for example on levels of radioactivity in the environment.

26. The NCA should also contain standard NCA provisions on implementation and dispute resolution, and should provide for the agreement of administrative arrangements that set out in detail the procedures to implement the NCA.

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