The Agreement on the Withdrawal of the UK from the EU and Euratom and its impact on the future application of state aid rules in the UK

The Agreement on the Withdrawal of the UK from the EU provides that EU state aid rules will apply to the UK until the end of the transition period and to the trade of Northern Ireland at least until 31 December 2024 and from that date for as long as the agreed arrangements receive ‘democratic consent’. This article considers whether the Agreement may incentivize the UK to apply EU state aid rules in the rest of the UK. It concludes that the UK is likely to align itself to the EU’s regime.