As of 1 January 2021, trade and cooperation between the European Union (EU) and the United Kingdom of Great Britain and Northern Ireland (United Kingdom) are governed by the Trade and Cooperation Agreement (TCA) signed on 30 December 2020.1 The TCA covers a wide range of areas including trade, transport, fisheries, energy, social security coordination, law enforcement and judicial cooperation in criminal matters, providing a comprehensive basis for the relationship between the parties and ensuring a level playing field for fair competition and sustainable development, as well as respect for fundamental rights.This is the Commission’s second report on the TCA‘s implementation and application, as required by Article 2(4) of Council Decision (EU) 2021/689 of 29 April 2021.2 It provides an overview of the main developments in the functioning of the institutional framework (section 2), as well as in a range of areas that fall within its purview (section 3), including an overview of complaints received in 2022 (section 4). The report also addresses regulatory developments in the United Kingdom taking place in 2022 (section 5). Finally, two years after the end of the transition period, the report looks at the effects for the EU of the United Kingdom leaving the internal market, the Customs Union and the various Union policies (section 6).