Locations affected: United Kingdom, European Union
On 19 May, the European Union (EU) and the United Kingdom (UK) held their first formal summit since the UK left the EU bloc in 2020 (Brexit). In a move highlighting growing ties, the EU and UK signed multiple agreements on defence cooperation and easing trade flows. The trade agreements with the EU are the third set of trade deals struck by UK Prime Minister Keir Starmer, following deals with the United States and India.
Drop in Exports After Brexit
Since Brexit, the UK has witnessed a 21 percent drop in exports to the EU, its largest trading partner. Goods exported from the UK to the EU have faced lengthy post-Brexit certifications and other non-tariff barriers, impacting fresh food export.
Key Points of the Agreements
- Easing Border Checks: Officials are set to remove some routine border checks on animal and plant products and align with EU regulations, which are expected to reduce the cost of food imports and exports and increase the flow of goods across borders. The changes will allow the UK to resume selling products like raw British burgers, sausages, and seafood to the EU.
- Fishing Agreement: The deals during the summit also included a 12-year extension of an agreement to allow EU fishing vessels to operate in UK waters till 2038. The deal will also allow sale of fish caught in UK waters to be sold in the EU without veterinary checks, bypassing a costly post-Brexit barrier. Starner has also announced a EUR 360 million fund to support fishing communities and modernize the British fishing fleet.
- Strengthening of Defence Partnership: The new security and defence agreement will grant the British defence industry access to a new EU loan program worth EUR 150 billion, allowing the UK to secure cheap loans to buy military equipment. UK and EU officials will also meet every six months to discuss defence and foreign policy as well as establish increased coordination regarding sanctions, sharing information and developing a space-related security policy.
- Easing Movement Across Borders: The EU and UK have agreed on a youth mobility plan to allow students and young professionals (18–30-year-old) to live and work temporarily in each other’s territory. Details on the plan have not been released. British passport users will also be able to use automated gates at more European airports, helping avoid long queues at border control.
Outlook on the Situation
The agreements between the EU and the UK mark a significant shift in their relations after years of tensions regarding Brexit. The heightened security threat due to the Russia-Ukraine war and the uncertainty of the US being a reliable trading partner amid President Donald Trump’s policies has increased the importance of closer ties between European countries. Starmer’s government expects the eased custom checks to add nearly EUR 10.7 billion to the British economy by 2040. The agreements may face some backlash from the opposition, especially regarding the youth mobility plan and the fishing deal. Protests by fishermen, who have largely criticized the deal, can also be anticipated. Since immigration remains a key issue for the UK, further negotiations regarding the mobility plan may be expected.
