What does “level playing-field” mean?
The EU is ready to offer a high-ambition trade deal, with zero tariffs and zero quotas on all goods entering our single market of 450 million people. However, because of our high levels of economic inter-connectedness, the volume of trade and geographical proximity, the draft negotiating directives also make clear that this offer is conditional on robust level playing field safeguards to prevent unfair competitive advantages the UK could derive from regulatory divergence (via lowering of standards or a “race to the bottom”) or subsidisation of UK operators.
In the Political Declaration, the EU and the UK already agreed that they would prevent distortions of trade and unfair competitive advantages. We must now agree on effective assurances to guarantee common high standards and corresponding high standards over time on social, environmental, tax, state aid and competition matters. Union standards in these areas will serve as a point of reference to establish these guarantees.
Robust level playing field commitments will entail also the establishment of adequate mechanisms to ensure effective enforcement and monitoring, dispute settlement and the possibility to adopt appropriate remedies, including autonomous measures to react quickly to disruptions of the equal conditions of competition in relevant areas..