What is cross-retaliation?

Cross-retaliation refers to the idea that parties to a trade agreement can take retaliatory action, such as implementing tariffs, in areas not directly related to those in which a breach has taken place.

This possibility is contained in the Trade and Cooperation Agreement, despite initial UK objections.

Thus it is possible if the UK reduces EU access on fisheries, the EU could reduce UK access to the EU electricity market, though any retaliation must be “proportionate”.