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A New Chapter for UK-EU Relations: What was Agreed and What Does it Mean for the UK


The UK-EU Summit 2025, held yesterday in London, marked a pivotal moment in post-Brexit relations with an agreement that could reshape trade, mobility, and cooperation across key sectors. Prime Minister Sir Keir Starmer called the deal a turning point, emphasising that

"It is time to look forward...to find common sense, practical solutions which get the best for British people"

Here is a breakdown of what was announced:


Food and SPS Checks

One of the biggest talking points was the agreement to work towards an SPS agreement.  Since Brexit, UK exporters have struggled with bans on products like raw sausages and burgers and additional SPS checks and documentation.  

The new deal includes steps towards a joint food safety agreement, which, if fully implemented, will: 

  • Ease checks and paperwork for exporters 

  • Lift bans on products like raw meats 

  • Restore market access for British staples, including sausages and burgers 

  • Potentially reduce food prices for consumers by smoothing import and export processes 

The exact details of how this will be done is yet to be known.  For possible avenue to ease UK imports would be to lower the risk categorisation for some UK imports so only the IPAFFS notification is required and not the Export Health Certificate.   

However, as part of this agreement on SPS goods, the UK must agree to “dynamic alignment” with EU food safety rules and accept oversight by the European Court of Justice in this area.  The negative impact of dynamic alignment is one that is being heavily debated with some saying that it will impact the UK’s ability to sign new trade agreements while others pointing to the fact that it hasn’t impacted talks with Australia, New Zealand, India and the accession to the CPTPP.  


Industry & Energy 

Another positive for UK businesses is the linking of the UK and EU’s Emissions Trading Systems.    This will ensure UK businesses do not fall under the CBAM requirements which are due to come into effect next year.  The Government state that this will save UK businesses a total of £800million.  

Additionally, UK steel will be shielded from upcoming EU tariffs and new rules, a move expected to save the industry £25 million annually  

 

Fishing 

The UK agreed to extend EU fishing access to its waters until 2038.  While Starmer assured that there will be  

“No increase in EU quotas.”  

Although this has received some negative feedback from the industry, this agreement is an extension to what was already in place. 

 

Youth Mobility 

To be clarified in future talks, the EU and the UK have at least agree to work towards a scheme which facilitates young people from the EU and the UK to travel, work, volunteer and study in each other’s territories.   

Generally, these schemes impact individuals below the age of 30 and could represent a significant shift from current arrangements. Reopening doors for the next generation. 

 

eGates 

British travellers to the EU may eventually get to skip passport queues thanks to the potential use of eGates at EU airports. While the UK government announced it as a breakthrough for holidaymakers, the reality is less immediate, implementation will depend completely on the EU’s Entry/Exit System (a new automated border control system being introduced to enhance the management of the EU’s external borders), which will launch in October and will be implemented on a country-by-country basis..  

So, don’t pack your bags expecting shorter lines just yet, but a change is on its way. 

 

Defence Industry 

In a boost for UK defence manufacturers, the EU has opened the door for British firms to participate in its €150bn SAFE fund, meant to support rearmament across the continent. 

This is a big deal for an industry that supports over 160,000 jobs in the UK and is among the world’s top arms exporters. The exact terms are still being negotiated, but access to EU contracts could be lucrative. 

 

What Does This All Mean 

This agreement is the first steps towards mitigating some of the most painful friction points which impact UK-EU trade.  Overall, the agreement is projected to boost the UK economy by £9 billion.   

However, we will need to wait and see a lot of the exact details as negotiations continue over the coming weeks and months.   

 

For more news on the agreements and updates as more details are announced, subscribe to our newsletter: https://teesglobal.createsend.com/h/y/3379CA0D597A74AA/preview/638817884313447861  

 

 

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