The UK and the EU are nearing a significant bilateral agreement since Brexit, aiming to enhance cooperation in trade and defense to promote economic growth and strengthen security on the European continent.
On Monday, UK Prime Minister Keir Starmer will hold a summit with EU leaders in London, marking the first bilateral summit since the UK’s Brexit in 2020. The agreement is expected to cover simplifying food exports, restoring youth exchange programs, expanding defense participation, and more. This negotiation is widely seen as a “major reset” of UK-EU relations, potentially setting a new tone for the post-Brexit era in the UK.
In 2016, the UK held a Brexit referendum which revealed deep societal divisions on trade, immigration policy, sovereignty, and cultural identity. This led to a turbulent period with five consecutive changes in prime ministers.
Since taking office in July last year, Starmer has been trying to move away from the shadows of Brexit political battles and rebuild cooperation with the EU. Following Russia’s full-scale invasion of Ukraine and Trump reshaping the global order, nations are reassessing their trade and security frameworks. The UK is seeking a path that maintains autonomy while pursuing mutually beneficial relations.
Starmer, who supports remaining in the EU, believes that reaching a closer agreement with the EU during the London summit, to secure tangible benefits for the UK, could help counter criticisms of “betraying Brexit” from figures like Nigel Farage, leader of the Reform UK party.
According to Reuters, one core aspect of this agreement will be a defense and security pact that could open the door for UK defense enterprises to participate in a €150 billion (approximately $167 billion) European defense restructuring program.
The UK also hopes to significantly reduce border checks and paperwork through this negotiation to streamline trade processes for food and agricultural products with the EU.
Allowing UK travelers to use fast e-gate clearance channels at European airports is considered a popular initiative. As part of the exchange, the UK is expected to agree to a limited youth mobility agreement and could potentially rejoin the EU’s Erasmus+ student exchange program.
France is looking to push for a long-term fisheries rights agreement through this negotiation. Fisheries rights were a highly contentious issue during Brexit and have once again become a focal point.
Ursula von der Leyen, President of the EU Commission, and Antonio Costa, President of the European Council, are expected to arrive in London on Monday. An EU diplomat cautioned, “Until everything is agreed upon, nothing is agreed upon.”
Despite a potential agreement between the UK and the EU, there are still multiple technical and political challenges to be overcome. Starmer has made it clear that the UK will not rejoin the EU’s single market and customs union, limiting the economic benefits of the agreement, but he is seeking better market access in specific sectors.
The EU has consistently opposed selective benefit arrangements, known as “cherry-picking,” making negotiations challenging.
For simplifying food trade processes, the UK may have to accept EU oversight on standards. However, Starmer may argue that this move could help reduce food prices and revitalize the UK’s weakened economy.
A trade expert told Reuters that starting from farmers and small businesses, if the UK government “breaks political taboos” and moderately complies with EU rules, it would be a prudent move.
Another trade expert believes that the UK stands to benefit from including a defense dimension in the agreement, making the overall negotiation more balanced. Given the increasing instability in the world, improving UK-EU relations is a reasonable choice.
“In a time when trade disruptions are so evident and severe, reducing friction with our largest trading partner is a sensible move,” said Allie Renison, former UK government trade official and current advisor at consultancy firm SEC Newgate.
(This article references relevant reports from Reuters)