LONDON: The U.K. agreed on the most significant reset of ties with the European Union since Brexit on Monday, removing some trade barriers, extending a fishing agreement and collaborating on defense to help grow its economy and boost security on the continent.
The deal was a central point at a landmark U.K.-EU summit and is opening a new chapter in ties after Britain’s acrimonious exit from the bloc five years ago.
Under the deals, a new U.K.-EU defense and security partnership will allow the U.K. to access an EU defense loan program worth 150 billion euros ($170 billion).
Other agreements include removing some checks on animal and plant products to ease food trade across borders, and a 12-year extension of an agreement allowing EU fishing vessels in U.K. waters.
British Prime Minister Keir Starmer said the deals will slash red tape, grow the British economy and reset relations with the 27-nation trade bloc since the U.K. left the EU in 2020.
He hosted European Commission President Ursula von der Leyen and other senior EU officials in London for the first formal U.K.-EU summit since Brexit.
Starmer, who backed remaining in the EU in the Brexit referendum, bets that offering tangible benefits to Britons, such as the use of faster e-gates at EU airports, will drown out the cries of “betrayal” from Brexit campaigner Nigel Farage.
The government said the reset with its biggest trading partner would reduce red tape for food and agricultural producers, making food cheaper, improve energy security and add nearly 9 billion pounds ($12.1 billion) to the economy by 2040.
But the deal contains political risk for Starmer as it touches on sensitive issues, including fishing rights, and many of the agreements will require further negotiation.
The reset follows U.S. President Donald Trump’s upending of the post-war global order, which has forced governments around the world to rethink ties on trade, defense and security, and brought Starmer closer to France’s Emmanuel Macron and other European leaders.
Starmer said it “marks a new era in our relationship … We are agreeing a new strategic partnership fit for our times.”
He said “real, tangible benefits” for the U.K. would be seen in “security, irregular migration, energy prices, agri food, trade” as well as “bringing down bills, creating jobs and protecting our borders.”
While the EU is the U.K.’s largest trading partner, the U.K. has been hit with a 21% drop in exports since Brexit because of more onerous border checks, laborious paperwork and other barriers.
Since becoming prime minister last July, Starmer has sought to reset relations with the EU, following years of tensions in the wake of the U.K.’s 2016 Brexit referendum.
Von der Leyen said it was “a big day because we are now turning the page and opening a new chapter.”
“That is so important in these times, because we see the rise of geopolitical tensions, but we are like-minded. We share values,” she added.
“This is about making people better off, about making the country more secure, about making sure there are more jobs in the U.K.,” Trade Secretary Jonathan Reynolds told Times Radio.
Stronger ties with the EU will bring “more benefits for the United Kingdom” following trade agreements that the U.K. struck in recent weeks with India and the United States, Starmer said.
Though no tariffs are slapped on the export of goods between both sides, an array of non-tariff barriers have made trade more difficult.
Post-Brexit visa restrictions have also hobbled the cross-border activities of professionals such as bankers or lawyers, as well as cultural exchanges, including touring bands and school trips.
Since the Labour Party took power last year after 14 years of Conservative government, a period that was largely marked by upheavals surrounding the Brexit vote and its aftermath, both sides have sought to improve relations.
That’s been most evident in the more coordinated response to Russia’s full-scale invasion of Ukraine in the wake of a change of approach by Washington following the return of Trump to the White House.
Deal reached after late-night talks
EU diplomats said a deal had been reached on resetting ties with the U.K. after late-night talks to resolve differences on key sticking points.
EU member states have approved a trio of texts to be signed at the summit, particularly on defense, and, after a last-minute breakthrough, the thorny issue of fishing rights.
Economists said the reset with the U.K.’s biggest trading partner could have a larger impact on its sluggish economy than recent deals with India and the U.S., but its refusal to rejoin the EU’s single market or customs union will limit that.
“It’s time to look forward – to move on from the stale old political fights and to find common sense, practical solutions that improve the lives of British people,” Starmer said on X.
At the heart of the reset is a defense and security pact that will let Britain be part of any joint procurement, but further agreement will be needed for British companies, including BAE, Rolls-Royce and Babcock, to take part in a 150 billion euro program to rearm Europe.
On fishing, British and EU vessels will have access to each other’s waters for 12 years – removing one of the U.K.’s strongest hands in any future talks – in return for a permanent reduction in paperwork and border checks that have prevented many small food producers from exporting to Europe.
Britain should also get access to faster e-gates for U.K. travelers at EU airports.
In return, it has agreed to the outline of a limited youth mobility scheme, with the details to be hammered out in the future, and it is discussing participation in the Erasmus+ student exchange program.
Historic referendum
Britain’s vote to leave the EU in a historic referendum in 2016 revealed a country that was badly divided over everything from migration and sovereignty of power to culture and trade.
It helped trigger one of the most tumultuous periods in British political history, with five prime ministers in office before Starmer arrived last July, and poisoned relations with Brussels.
Polls show a majority of Britons now regret the vote, although they do not want to rejoin. Farage, who campaigned for Brexit for decades, leads opinion polls in Britain, giving Starmer limited room for manoeuvre.
But the prime minister and France’s Macron have struck up a solid relationship over their support for Ukraine, and Starmer was not tainted with the Brexit rows that went before, helping to improve sentiment.
Trump’s unpredictable tariff program has also prompted governments to try to strike new trade deals to seek new export economies.
Britain struck a full trade deal with India earlier this month and secured some tariff relief from the U.S., while the EU is seeking to forge trade deals with India and deepen partnerships with Canada, Australia, Japan and Singapore.
Rather than seek a full return to a pillar of the EU like the single market, Starmer sought to negotiate better market access in some areas, a move that is often rejected by the EU as “cherry picking” of EU benefits without the obligations of membership.
Removing red tape on food trade required Britain to accept EU oversight on standards, but Starmer will argue that it is worth it to grow the economy and cut food prices. Trade experts said breaking the taboo of EU oversight for something that would benefit small companies and farmers was good politics.
Despite the agreement, Britain’s economy will remain significantly different from before it left the bloc. Brexit cost London’s financial center thousands of jobs, has weighed on the sector’s output and reduced its tax contributions.
Trump, who has backed Brexit, could also be a potential headache for Starmer.
“The reset could still be blown off course by disagreements over how to consolidate existing areas of cooperation like fisheries and/or external factors, such as a negative reaction from the U.S. to the U.K. seeking closer ties with the EU,” said Jannike Wachowiak, research associate at the U.K. in a Changing Europe think tank.
Courtesy: Dailysabah
