UK and EU reset ties with sweeping post-Brexit deal on trade, defence and mobility

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by Finance News Network

The United Kingdom and European Union have struck a wide-ranging new agreement to reset their post-Brexit relationship, promising reduced trade barriers, renewed defence cooperation, and new visa pathways for young people. The deal—finalised at a landmark summit in London on Monday—has been described by UK Prime Minister Keir Starmer as a “win-win,” though it has drawn sharp criticism from right-wing Brexiters and fishing industry bodies.

Trade eased, red tape slashed

 

A centrepiece of the agreement is a long-anticipated sanitary and phytosanitary (SPS) deal to ease the flow of agricultural goods across the Channel. British exporters will now face significantly fewer checks and certifications on plant and animal products, reversing some of the most burdensome Brexit trade effects. Sausages, raw burgers, shellfish, cheese and even pet food can now re-enter the EU market without costly inspections. According to No.10, the reforms are expected to add £9bn (US$11.5bn) to the UK economy by 2040.

Importantly, the agreement extends beyond trade with the EU to include simplified movement of goods between Great Britain and Northern Ireland—potentially defusing tensions related to the post-Brexit Irish Sea border.

In exchange, the UK has accepted dynamic alignment with EU standards in key food sectors, a move that revives longstanding debates about Britain becoming a “rule-taker.” The agreement also subjects disputes to independent arbitration, with the European Court of Justice as the final authority on EU law matters.

12-year fishing concession draws ire

 

One of the most contentious elements of the deal is the UK’s last-minute concession to extend EU fishing access to British waters until 2038—three times longer than originally offered. The move secured the agricultural trade deal but triggered backlash across the political spectrum.

Nigel Farage, leader of the pro-Brexit Reform UK party, called the agreement “an abject surrender,” while the Scottish Fishermen’s Federation labelled it a “horror show.” The UK government has pledged £360m to modernise coastal communities and boost seafood exports, but discontent remains high in the fishing sector.

Defence pact opens access to €150bn EU fund

 

The agreement marks a return to structured defence and security cooperation, including biannual UK-EU meetings on foreign policy and access to the EU’s upcoming €150bn (US$163bn) “Security Action for Europe” fund. British defence firms such as BAE Systems and Babcock are expected to benefit, especially as the EU ramps up rearmament amid geopolitical instability.

The UK will also rejoin the EU’s PESCO military mobility project, enabling faster movement of troops and equipment across Europe—a key NATO priority.

Carbon market link to shield British industry

 

To protect British exporters from looming EU carbon border taxes, the UK and EU have agreed to link their emissions trading systems. This alignment is expected to save UK firms up to £800m in levies and will particularly benefit carbon-intensive sectors like steel and cement. The UK will also re-engage with EU energy market structures, improving integration and lowering costs for electricity users.

Youth mobility, e-gates, and a tentative Erasmus return

 

The deal includes a framework to develop a new “youth experience scheme,” modelled on existing UK arrangements with Australia and New Zealand, allowing capped, time-limited visas for young people to live and work across the EU and UK. Talks are also underway to rejoin the Erasmus+ academic exchange program, potentially reversing one of the most criticised cultural consequences of Brexit.

Meanwhile, UK holidaymakers will gain expanded access to e-gates at EU airports, though implementation depends on national governments and the rollout of the EU’s new Entry-Exit System, set to launch in October. The UK has also secured a new “pet passport” arrangement, ending repeated vet visits for cats and dogs travelling to Europe.

Broader cooperation: security, migration, policing

 

The UK will regain access to several Europol databases, including facial recognition, DNA, and criminal records, enhancing cross-border policing. Both sides also committed to closer cooperation on migration, particularly in managing small boat arrivals and human trafficking.

Negotiations over mutual recognition of professional qualifications and touring arrangements for UK musicians remain ongoing, with no concrete agreements yet reached.

Political risks at home

 

Though lauded by business groups and many European leaders as pragmatic and overdue, the deal has exposed political vulnerabilities for Starmer. With Reform UK rising in the polls and the Conservatives warning of regulatory backsliding, Starmer faces accusations of reviving elements of EU membership without a democratic mandate.

Conservative leader Kemi Badenoch accused Starmer of “secret negotiations” and warned the deal would make it harder to reach a free trade agreement with the US. Meanwhile, former prime minister Boris Johnson issued a colourful condemnation, claiming the deal turned the UK into “a leather-trussed gimp.”

Despite these attacks, Starmer defended the agreement, arguing that rebuilding ties with Britain’s largest trading partner was both economically vital and politically necessary. “This deal puts more money in the pockets of working people,” he said, “and it shows that Britain is back—serious, strategic, and forward-facing on the world stage.”


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