The financial services part of the proposed free trade agreement is in Chapter 17 and marks the first time the government has clearly set out its financial services expectations in the UK`s future relationship with the EU. Among the main elements of financial services to be taken into account in the draft free trade agreement is the fact that, in the sectors covered by the mutual adoption of the results of the compliance assessment, the UK proposal would maintain trade in goods between the UK and the EU as if the UK were in the internal market. Manufacturers could still be subject to documents certifying EU standards, but they would not be subject to physical inspections. In addition, British agencies could do business throughout Europe. Mutual recognition is limited to the areas listed in an appendix, but over eight pages, this is a very ambitious requirement. Finally, Appendix 5-A-2 of the United Kingdom project requires each party to recognize the unified country`s compliance certification (compliance assessment) system for motor vehicles, provided that both jurisdictions continue to base their rules on international automotive industry standards established by the EEC-UN, a UN body in Geneva.  All European countries have done so since the 1950s and, in their recent free trade agreements with the EU, Korea and Japan have committed to it. On the other hand, the United States does not follow this system. Part 4 of the draft text deals with the UK`s participation in EU programmes and good financial management. It covers the financial conditions of the UK`s participation in EU programmes, which would include a combined amount of registration fees and an operational contribution. EU institutions have the right to audit and audit individuals and entities in the UK that receive EU funding.
Programmes in which the United Kingdom participates would be identified in a currently empty protocol. While the introductory party may decide on the granting of equivalence, the draft de facto limits its freedom of refusal and must explain its reasons when it does so: the second part of the draft treaty concerns economy and trade. Title III establishes provisions on equal competition (LPF) and sustainability. The EU is working to meet legally binding commitments to meet high standards of state aid, competition, taxation, labour standards, environmental protection, climate change and sustainability. The partnership would include the continued implementation of EU rules (dynamic harmonisation) on state aid. In other areas, the parties agree not to fall below the standards in force at the end of the transition period (non-regression). In addition, the governing body would be able to amend the commitments to reflect changes in standards in most areas of the LPF. Commitments would be subject to robust enforcement mechanisms on national territory. The dispute resolution mechanisms in the agreement, which could be modified, would apply to all areas except competition and taxation.