Regulation (EU) 2023/657 of the European Parliament and of the Council of 15 March 2023 laying down rules for the exercise of the Union’s rights in the implementation and enforcement of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community and of the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part

• CELEX: Regulation (EU) 2023/657
• Articles: 7

Article 1 Subject matter and scope

1.   This Regulation lays down rules and procedures to ensure an effective and timely exercise of the Union’s rights in implementing and enforcing the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (the ‘Withdrawal Agreement’), the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part (the ‘Trade and Cooperation Agreement’) and supplementing agreements to the Trade and Cooperation Agreement.

2.   This Regulation applies to the following measures adopted by the Union:

(a)

the temporary suspension of the relevant preferential treatment of the product or products concerned as set out in Article 34 of the Trade and Cooperation Agreement;

(b)

remedial measures and the suspension of obligations as set out in Article 374 of the Trade and Cooperation Agreement;

(c)

rebalancing measures and countermeasures as set out in Article 411 of the Trade and Cooperation Agreement;

(d)

the refusal, revocation, suspension, limitation of and the imposition of conditions on the operating authorisations or technical permissions of air carriers of the United Kingdom, as well as the refusal, revocation, suspension, limitation of and the imposition of conditions on the operation of those air carriers, as set out in Articles 434(4) and 435(12) of the Trade and Cooperation Agreement;

(e)

the suspension of acceptance obligations as set out in Article 457 of the Trade and Cooperation Agreement;

(f)

remedial measures as set out in Article 469 of the Trade and Cooperation Agreement;

(g)

compensatory measures, in particular the suspension of obligations as set out in Article 501 of the Trade and Cooperation Agreement;

(h)

remedial measures and the suspension of obligations as set out in Article 506 of the Trade and Cooperation Agreement;

(i)

the suspension or termination of the application of Protocol I to the Trade and Cooperation Agreement in relation to one or more Union programmes or activities adopted on the basis of the TFEU, or parts thereof, as set out in Articles 718 and 719 of the Trade and Cooperation Agreement;

(j)

an offer or acceptance of temporary compensation or the suspension of obligations in the context of compliance following an arbitration or panel of experts procedure under Article 749 of the Trade and Cooperation Agreement;

(k)

safeguard measures and rebalancing measures as set out in Article 773 of the Trade and Cooperation Agreement;

(l)

measures restricting trade, investment or other activities within the scope of the Trade and Cooperation Agreement, if adjudication is not possible because the United Kingdom is not taking the steps that are necessary for a dispute settlement procedure under that Agreement or the Withdrawal Agreement to function, including unduly delaying the proceedings amounting to non-cooperation in the process;

(m)

the suspension of obligations under Article 178 of the Withdrawal Agreement in the context of compliance with an arbitration panel ruling;

(n)

remedial measures as set out in Article 13 of the Protocol on Ireland/Northern Ireland to the Withdrawal Agreement;

(o)

safeguard measures and rebalancing measures as set out in Article 16 of the Protocol on Ireland/Northern Ireland to the Withdrawal Agreement.

Article 2 Exercise of the Union’s rights

1.   The Commission shall be empowered, by means of implementing acts,

(a)

to adopt the measures referred to in Article 1(2) of this Regulation, with the exception of the suspension, in whole or in part, of access to Union waters under the Trade and Cooperation Agreement by vessels of the United Kingdom for fisheries; and

(b)

where the measure consists of the suspension of an obligation under any of the Agreements referred to in Article 1(1), to impose restrictions on trade, investment or other activities within the scope of the agreement concerned which would otherwise be precluded by the suspended obligation.

Where appropriate, those implementing acts shall specify the duration of the adopted measures.

2.   Measures adopted pursuant to this Regulation shall be proportionate to the objectives pursued and effective in inducing compliance of the United Kingdom with the Agreements referred to in Article 1(1). They shall comply with the specific criteria established in those Agreements.

3.   The Commission shall be empowered to amend, suspend or repeal the measures referred to in Article 1(2) by means of implementing acts. Where appropriate, those implementing acts shall specify the duration of the suspension.

4.   Where there is a particular concern of one or more Member States, that or those Member States may request the Commission to adopt the measures referred to in Article 1(2). If the Commission does not respond positively to such a request, it shall inform the Council in a timely manner of its reasons.

5.   If, due to persisting significant divergences, the rebalancing measures referred to in Article 1(2), point (c), of this Regulation last for more than a year, one or more Member States may request the Commission to activate the review clause provided for in Article 411 of the Trade and Cooperation Agreement. The Commission shall examine that request in a timely manner and shall consider seizing as appropriate the Partnership Council of that matter, in accordance with the provisions set out in the Trade and Cooperation Agreement. If the Commission does not respond positively to such a request, it shall inform the Council in a timely manner of its reasons.

6.   The implementing acts referred to in paragraphs 1 and 3 of this Article shall be adopted in accordance with the examination procedure referred to in Article 3(2).

7.   On duly justified imperative grounds of urgency, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 3(3).

8.   When the Council decides pursuant to Article 43(3) TFEU to suspend, in whole or in part, access to Union waters under the Trade and Cooperation Agreement by vessels of the United Kingdom for fisheries, it shall apply the criteria set out in paragraph 2 of this Article.

Article 3 Committee procedure

1.   The Commission shall be assisted by the UK Committee. That committee shall be a committee within the meaning of Article 3 of Regulation (EU) No 182/2011. In accordance with Regulation (EU) No 182/2011, the European Parliament and the Council shall be regularly and promptly informed on committee proceedings.

2.   Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

3.   Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 5 thereof, shall apply.

4.   The European Parliament and the Council may at any time exercise their right of scrutiny in accordance with Article 11 of Regulation (EU) No 182/2011.

Article 4 Information

1.   In order to give effect to the powers of the Council under the Treaties, as reflected in Decisions (EU) 2020/135 and (EU) 2021/689, the Council shall be kept continuously informed on a permanent and regular basis of the implementation of the Withdrawal Agreement and the Trade and Cooperation Agreement.

2.   In order to give effect to its powers under the Treaties, the European Parliament shall be kept immediately and fully informed, in accordance with the Treaties, to allow it to exercise its institutional prerogatives.

Article 5 Relation to other provisions of Union law

This Regulation shall apply notwithstanding any provisions of Union law adopted on the basis of the TFEU that govern the same subject matter.

When the Commission submits its annual reports to the European Parliament and to the Council on the implementation and application of the Trade and Cooperation Agreement, it shall also include an overview of any complaints received regarding the Trade and Cooperation Agreement as well as the follow up to such complaints, and of measures adopted pursuant to Article 2 of this Regulation.

Article 6 Review

By 12 April 2026, the Commission shall present a report to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the application of this Regulation, accompanied where appropriate by relevant legislative proposals.

Article 7 Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union .