Britain agreed the most significant reset of relations with the European Union since Brexit on Monday, with both sides hailing deals on everything from trade and migration to security and defence.
Below are the main points agreed:
DEFENCE AND SECURITY PACT
Britain’s Labour government and the EU clinched a defence and security pact that previous Conservative governments opted not to seek when Brexit was first negotiated.
Both sides agree it is imperative for European countries to work more closely together on defence, given Russia’s invasion of Ukraine and calls by U.S. President Donald Trump for NATO’s European members to shoulder more of the burden of the alliance.
As part of the reset, Britain will agree a new security and defence partnership, which it said would “pave the way” for British companies to access a 150 billion euro ($167 billion) programme to rearm Europe.
Britain will also consider taking part in EU civilian and military crisis management and be able to participate in joint procurement with the bloc.
FOOD STANDARDS
Outside the defence and security partnership, the rest of the agreement was outlined in a “common understanding” document, which listed areas of agreement and shared intentions while saying some details still needed to be finalised in the coming weeks and months.
Central to Labour’s plans for an EU reset was a veterinary agreement with the EU aimed at preventing unnecessary border checks on agricultural produce such as meat and dairy.
The so-called Sanitary and Phytosanitary agreement will have no time limit, giving British businesses more certainty.
The deal would maintain high food standards, which Britain also insisted were not lowered in its discussions with the U.S. to remove tariffs.
MOBILITY
A youth mobility scheme to make it easier for under-30s to travel and work between Britain and the EU is a priority for the bloc, and the two sides said they would work towards a youth mobility deal.
Britain said any scheme would be capped and time-limited. British Prime Minister Keir Starmer’s office reiterated that it would not mark a return to freedom of movement, with controls on how many people would use the scheme, and how long they could stay.
The two sides also agreed to work more closely together on tackling irregular migration.
FISHERIES
Britain and the EU will extend full reciprocal access to waters to fish until June 30, 2038, extending by 12 years provisions that were due to expire in 2026.
Britain said the deal would not result in an increase in the amount of fish EU vessels can catch in British waters.
Britain will also invest 360 million pounds into its fishing industry towards new technology and equipment to modernise the fleet.
The post-Brexit trade agreement transferred existing quotas to the bloc for a transition period, after which they would be negotiated on an annual or multi-annual basis.
Fishing has long been a source of tension. The EU has taken Britain to court over its ban of fishing for sand eels in UK waters.
ELECTRICITY
Britain left the EU’s internal energy market after Brexit, but the UK’s energy industry is pushing for more efficient and closer electricity trading arrangements with the bloc.
The two sides will now explore Britain’s participation in the EU’s internal electricity market.
Britain imported around 14% of its electricity in 2024, a record high, through power links with Belgium, Denmark, France and Norway.
CARBON MARKETS
Many EU and British businesses have called for the EU and UK carbon markets to be linked. They already collaborate on charging power plants and other industrial entities for their carbon emissions to reach climate targets.
Britain and the EU will now work towards establishing a link between their emission trading systems – which Britain said would improve energy security and help businesses avoid an EU carbon tax due to come into force next year.
Industry analysts have said linking the two carbon markets would probably drive up UK prices, which are lower than in the EU, to EU levels.
OTHER AREAS
The mutual recognition of certain professional qualifications, changes to ease travel for touring artists and data-sharing are all areas where Britain and the EU may seek to pursue future agreement.
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Source: Reuters