UK and EU Forge New Agreements: What This Means for Trade and Defence
Gyanhigyan english May 20, 2025 02:39 AM
New Era of Cooperation

London: On Monday, the UK government announced it has reached new agreements with the European Union aimed at enhancing defence collaboration, streamlining food trade, and reducing border checks. This marks the first formal summit between the two parties since Brexit.


Prime Minister Keir Starmer, who held discussions with European Commission President Ursula von der Leyen and other high-ranking EU officials in London, emphasized that these agreements will minimize bureaucratic hurdles, stimulate the UK economy, and improve relations with the 27-member trade bloc since the UK's exit in 2020.


The agreements include the establishment of a UK-EU defence and security partnership, granting the UK access to a €150 billion ($170 billion) EU defence loan program.


Additionally, the deals will eliminate certain checks on animal and plant products to facilitate smoother food trade across borders, along with a 12-year extension of an agreement permitting EU fishing vessels to operate in UK waters.


"It’s time to look forward. To move on from the stale old debates and political fights to find common sense, practical solutions which get the best for the British people," Starmer stated.


Despite the EU being the UK's largest trading partner, the UK has experienced a 21% decline in exports since Brexit, attributed to stricter border checks, cumbersome paperwork, and other non-tariff barriers.


Post-Brexit visa restrictions have also hindered the cross-border activities of professionals, including bankers and lawyers, as well as cultural exchanges like touring bands and school trips.


Rebuilding Ties


Since taking office in July, Starmer has aimed to mend relations with the EU, which have been strained since the UK's 2016 Brexit referendum.


Current post-Brexit relations are governed by a trade agreement established by former Prime Minister Boris Johnson. Starmer believes improvements can be made to enhance trade and security.


He praised Monday’s agreements as the third trade deal his government has secured in recent weeks, following agreements with the US and India, stating they are "good for jobs, good for bills and good for our borders."


Food, Fishing, and Youth Mobility


The defence agreement will enable the UK’s defence sector to access affordable loans from a new EU program for military equipment, partly to assist Ukraine in its defense efforts.


In terms of trade, officials plan to reduce routine border checks and costs on certain food imports and exports, facilitating smoother goods movement. This means the UK can once again export products like British burgers and sausages to the EU.


"We know we’ve had lorries waiting for 16 hours, fresh food in the back not able to be exported, because frankly it’s just going off, red tape, all the certifications that are required, we absolutely want to reduce that," said Cabinet Office minister Thomas-Symonds, who led the negotiations.


The fisheries agreement allows European fishing boats access to UK waters until 2038. While economically minor, fishing has been a contentious issue and symbolically significant for both the UK and EU member states like France. Disputes over this matter nearly derailed the Brexit deal in 2020.


The discussions also included a youth mobility plan, enabling young Britons and Europeans to live and work temporarily in each other's territories. This remains a politically sensitive topic in the UK, viewed by some Brexiteers as a step back towards free movement, although the UK already has youth mobility agreements with countries like Australia and Canada.


Starmer has reiterated that the UK will not rejoin the EU’s frictionless single market and customs union, nor will it agree to free movement of people between the UK and the EU.


Challenges Ahead


Some of the compromises may prove challenging for Starmer, who faces increasing pressure from the pro-Brexit and anti-immigration Reform UK party, and will likely encounter accusations of "betraying Brexit," regardless of the talks' outcomes.


Reform, which recently achieved significant victories in local elections, along with the opposition Conservative Party, have already labeled the deal a "surrender" to the EU before any specifics were confirmed.


U.S. President Donald Trump, a supporter of Brexit, could also pose a challenge for Starmer.


"The reset could still be derailed by disagreements over consolidating existing cooperation areas like fisheries and/or external factors, such as a negative response from the US to the UK seeking closer ties with the EU," noted Jannike Wachowiak, a research associate at the UK in a Changing Europe think tank.


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