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The UK and the EU announce new offers and renew ties, 5 years after Brexit

by Index Investing News
May 19, 2025
in Financial
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Britain’s authorities stated Monday it has struck new agreements with the European Union on boosting protection cooperation, easing meals commerce and border checks.

Prime Minister Keir Starmer stated the offers will slash pink tape, develop the British financial system and reset relations with the 27-nation commerce bloc for the reason that U.Ok. left the EU in 2020.

Starmer hosted European Fee President Ursula von der Leyen and different senior EU officers in London for the primary formal U.Ok.-EU summit since Brexit.

Underneath the offers, a brand new U.Ok.-EU protection and safety partnership will enable the U.Ok. to entry a EU protection mortgage program price 150 billion euros ($170 billion.)

Different agreements embody eradicating some checks on animal and plant merchandise to ease meals commerce throughout borders, and a 12-year extension of an settlement permitting EU fishing vessels in U.Ok. waters.

Dwell Occasions


“It is time to look ahead. To maneuver on from the stale previous debates and political fights to search out frequent sense, sensible options which get the most effective for the British individuals,” Starmer stated. Whereas the EU is the U.Ok.’s largest buying and selling accomplice, the U.Ok. has been hit with a 21% drop in exports since Brexit due to extra onerous border checks, laborious paperwork and different obstacles. Resetting relations Since changing into prime minister in July, Starmer has sought to reset relations with the EU, following years of tensions within the wake of the U.Ok.’s 2016 Brexit referendum.

Submit-Brexit relations have been ruled by a commerce settlement negotiated by then Prime Minister Boris Johnson. Starmer thinks that may be improved in a manner that reinforces commerce and bolsters safety.

“That is about making individuals higher off, about making the nation safer, about ensuring there are extra jobs within the U.Ok.,” Commerce Secretary Jonathan Reynolds informed Instances Radio.

Stronger ties with the EU will convey “extra advantages for the UK” following commerce agreements that the U.Ok. struck in latest weeks with India and the USA, Starmer stated.

Non-tariff obstacles Although no tariffs are slapped on the export of products between either side, an array of non-tariff obstacles have made commerce harder.

Submit-Brexit visa restrictions have additionally hobbled the cross-border actions of execs akin to bankers or legal professionals, in addition to cultural exchanges, together with touring bands and faculty journeys.

Because the Labour Occasion took energy final yr after 14 years of Conservative authorities, a interval that was largely marked by upheavals surrounding the Brexit vote and its aftermath, either side have sought to enhance relations.

That is been most evident within the extra coordinated response to Russia’s full-scale invasion of Ukraine within the wake of a change of method by Washington following the return of U.S. President Donald Trump.

However Starmer has burdened that the U.Ok. will not rejoin the EU’s frictionless single market and customs union, nor comply with the free motion of individuals between the U.Ok. and the EU.

Safety, fishing and youth mobility Talks on strengthening ties have centered largely on safety and protection, and on a youth mobility plan that will enable younger Britons and Europeans to dwell and work quickly in one another’s territory.

That is still a politically sensitive challenge within the U.Ok., seen by some Brexiteers as inching again towards free motion – although the U.Ok. already has youth mobility preparations with nations together with Australia and Canada.

One other challenge that has lengthy been a sticking level in U.Ok.-EU relations is fishing – an economically minor however symbolically vital challenge for the U.Ok. and EU member states akin to France. Disputes over the difficulty practically derailed a Brexit deal again in 2020.

The summit can also be anticipated to cowl aligning requirements on the sale of agricultural merchandise, which might eradicate pricey checks on meals merchandise exported throughout the English Channel.

Thomas-Symonds stated he was assured that commerce may very well be improved for meals imports and exports.

“We all know we have had lorries ready for 16 hours, contemporary meals within the again not in a position to be exported, as a result of frankly it is simply going off, pink tape, all of the certifications which might be required, we completely need to cut back that,” he informed the BBC.

Opposition objects to a ‘give up’ A few of the trade-offs could show tough for Starmer, who faces rising challenges from the pro-Brexit and anti-immigration Reform U.Ok. celebration and can probably see accusations of “betraying Brexit,” regardless of the final result of the talks.

Reform, which lately received massive in native elections, and the opposition Conservative Occasion have already referred to as the deal a “give up” to the EU earlier than any particulars had been confirmed.

Trump, who has backed Brexit, may be a possible headache for Starmer.

“The reset might nonetheless be blown astray by disagreements over find out how to consolidate present areas of cooperation like fisheries and/or exterior elements, akin to a unfavorable response from the U.S. to the U.Ok. looking for nearer ties with the EU,” stated Jannike Wachowiak, analysis affiliate on the UK in a Altering Europe suppose tank.



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