{"id":131836,"date":"2025-05-25T23:17:39","date_gmt":"2025-05-25T23:17:39","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/131836\/"},"modified":"2025-05-25T23:17:39","modified_gmt":"2025-05-25T23:17:39","slug":"what-the-post-brexit-reset-deal-means-for-the-uk","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/131836\/","title":{"rendered":"What the post-Brexit reset deal means for the UK"},"content":{"rendered":"<p>The EU and UK have announced a \u201creset\u201d of their relationship some four years after the original post-Brexit Trade and Cooperation Agreement between the two sides came into force.\u00a0<\/p>\n<p>The three-part deal includes commitments to work together on a new security and defence partnership and measures to improve trade in agrifoods and electricity.\u00a0<\/p>\n<p>Overall economic impact<\/p>\n<p>Sir Keir Starmer said the reset deal would boost the economy by \u00a39bn a year by 2040, but analysts said this would only recoup a tiny fraction of the costs of Brexit.<\/p>\n<p>The Office for Budget Responsibility continues to forecast that Brexit will have a 4 per cent long-run hit to GDP, and will shrink UK imports and exports by 15 per cent.\u00a0<\/p>\n<p>The government estimated the GDP uplift from the reset deal at 0.3 per cent in 2040 \u2014 an increase that Paul Dales, UK economist at Capital Economics, said was not a \u201cgame-changer\u201d for the economy.<\/p>\n<p>He added the deal was only \u201cchipping away\u201d at the costs of leaving the EU single market. \u201cYou are not reversing Brexit in terms of the economic changes.\u201d<\/p>\n<p>Benefits have been limited by government\u2019s self-imposed red lines that prevent the UK from rejoining the single market or a customs union, added Andrew Goodwin of Oxford Economics. <\/p>\n<p>Others have been more optimistic. Research group Frontier Economics suggested \u201cdeep\u201d regulatory alignment on goods trade could increase GDP by 1-1.5 per cent \u2014 though such an expansive realignment appears a long way off.<\/p>\n<p>Easing food and plant exports<\/p>\n<p>A veterinary agreement between the two sides \u2014 the most significant element of the deal \u2014 will reduce the need for costly checks and certificates on animal and plant products, reducing red tape for exporters and lowering prices for consumers.<\/p>\n<p>Food and drink exports to the EU have fallen by more than a third since 2019 as businesses struggled to meet the bloc\u2019s requirements, <a href=\"https:\/\/www.fdf.org.uk\/globalassets\/resources\/publications\/reports\/trade-reports\/fdf-2024-trade-snapshot.pdf\" data-trackable=\"link\" target=\"_blank\" rel=\"noopener\">according to<\/a> the Food and Drink Federation lobby group\u00a0<\/p>\n<p>However, an Aston University study estimated that <a href=\"https:\/\/www.ft.com\/content\/9ae49430-8ac5-49e2-97f3-17eb58acc293\" data-trackable=\"link\" target=\"_blank\" rel=\"noopener\">UK agrifood exports<\/a> to the EU could be boosted by more than 20 per cent as a result of a high-alignment veterinary agreement.<\/p>\n<p>UK producers and retailers that continued to export to the EU complained that conforming to the post-Brexit rules added thousands of pounds in costs to each load they shipped.<\/p>\n<p>Supermarkets hope that a deal can be completed early next year, according to one retail executive, allowing them to shut down post-Brexit trade compliance departments that cost millions of pounds a year. <\/p>\n<p>The UK will need to align with the EU\u2019s rules on animal and plant health, prompting opposition parties to accuse Starmer\u2019s Labour government of once again making the UK a \u201crule taker\u201d from Brussels.<\/p>\n<p>But Peter Hardwick, trade policy adviser at the British Meat Processors Association, said this was a \u201ccommon misunderstanding\u201d because the UK already has to abide by EU standards to export to the bloc.\u00a0<\/p>\n<p><a href=\"#23283951\"><\/p>\n<p class=\"o-message__content-main\">Some content could not load. Check your internet connection or browser settings.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/05\/https:\/\/public.flourish.studio\/visualisation\/23283951\/thumbnail\" alt=\"\"\/><\/a>Concessions on fishing<\/p>\n<p>The chief concession has seen the UK extend EU fishing access to British waters for 12 years, a decision the Scottish Fishermen\u2019s Federation labelled as \u201cdisastrous\u201d.<\/p>\n<p>The deal cements the existing agreement, which has seen EU catches in UK waters drop a quarter in five years. <\/p>\n<p>UK negotiators initially offered access for only four years, but agreed to 12 years after late-night talks to win the larger economic prize of the veterinary agreement.<\/p>\n<p>UK food and drink exports to the EU were \u00a314bn in 2024. In contrast, fishing accounted for just 0.04 per cent of economic output. The UK is even a net importer of fish, its fleet having almost halved over the past 30 years. <\/p>\n<p>Starmer argued that the concession was worth it to secure the vet deal that would allow UK salmon and shellfish producers to export more easily to the EU.\u00a0<\/p>\n<p>The UK exported around \u00a31.2bn in fish and shellfish to the EU in 2023, <a href=\"https:\/\/www.gov.uk\/government\/news\/fishing-industry-in-2023-statistics-published#:~:text=Since%202005%2C%20fishing%20effort%20(kW,1%25%20between%202022%20and%202023.&amp;text=The%20UK%20is%20a%20net,an%20overall%20(UK)%20level.\" data-trackable=\"link\" target=\"_blank\" rel=\"noopener\">according<\/a> to UK government statistics \u2014 a figure that industry body Salmon Scotland said would be boosted by the deal. <\/p>\n<p>Relinking to the EU energy market\u00a0<\/p>\n<p>In a concession to London, Brussels committed to work towards reintegrating the UK into the <a href=\"https:\/\/www.ft.com\/eu-energy\" data-trackable=\"link\" target=\"_blank\" rel=\"noopener\">EU\u2019s<\/a> internal energy market, enabling the smooth trading of electricity between member states.<\/p>\n<p>Requiring separate power auctions after Brexit has cost the UK about \u00a3400mn. Having a single internal market would cut costs and boost the investment case for renewable energy projects in the North Sea. <\/p>\n<p>Consultancy Baringa estimated that total savings for consumers from an integrated market could reach \u20ac44bn a year. <\/p>\n<p>In a surprise to the industry, the two sides agreed to work out \u201cin detail the necessary parameters\u201d for the UK to rejoin. <\/p>\n<p>\u201cIt\u2019s a real coup,\u201d said Adam Berman, deputy director of the industry lobby group Energy UK, that would give an \u201cimmediate sense that the UK and EU are willing to take barriers away from [renewable energy] projects\u201d.<\/p>\n<p>There are also talks on linking the UK and EU\u2019s emissions trading systems, though it is unclear whether these will be completed in time for the UK to avoid a new carbon border tax called CBAM that comes into force next January. <\/p>\n<p>Security and defence partnership\u00a0<\/p>\n<p>A new security and defence partnership \u2014 which was not part of the original post-Brexit deal \u2014 is another step forward in rebuilding the EU-UK relationship.<\/p>\n<p>The wide-ranging deal is similar to those the EU has signed with six other countries including Japan, South Korea, and North Macedonia, and opens the door to restoring the institutional co-operation that was ruptured by Brexit.<\/p>\n<p>The UK foreign secretary and EU high representative for foreign affairs will have twice-yearly meetings and regular invites to top-level EU meetings, including quarterly European Council summits.<\/p>\n<p>The document sets out a long list of aspirations for the relationship, including dialogue on cyber security. The pact also opens the door for the UK to negotiate participation in the EU\u2019s \u20ac150bn <a href=\"https:\/\/www.ft.com\/content\/b5c95e3d-74e2-4eb5-a88b-9e650cb93ce2\" data-trackable=\"link\" target=\"_blank\" rel=\"noopener\">loans-for-arms fund<\/a>, which would be a win for UK defence industries that create \u00a310bn in annual exports, according to lobby group ADS.\u00a0<\/p>\n<p>However, the terms of the deal are still to be determined, leading ADS chief executive Kevin Craven to describe the pact as \u201csomewhat underwhelming in the lack of detail\u201d.<\/p>\n<p>But Lord Peter Ricketts, former UK national security adviser, said there was significant value to restoring institutional ties with the EU. \u201cWe have lost countless opportunities to influence their thinking and planning on issues which matter to us. The host of new dialogues agreed today will give us back a role in decision shaping.\u201d<\/p>\n<p>Youth and professional mobility <\/p>\n<p>The political challenges of the reset are clear in Labour\u2019s reluctance to embrace Brussels\u2019 request for a <a href=\"https:\/\/www.ft.com\/content\/d2d9afed-9fb1-4b21-90a4-fbfd5391c528\" data-trackable=\"link\" target=\"_blank\" rel=\"noopener\">youth mobility scheme <\/a>to enable 18-30 year olds to live and work more freely across the EU and UK.<\/p>\n<p>The document leaves open the question of how large any such scheme will be, saying only that the number of participants must be \u201cacceptable to both sides\u201d, setting up a difficult negotiation to come.<\/p>\n<p>There is no offer of a deal for touring artists, a Labour manifesto pledge. On business mobility, there is only a vague commitment to \u201cset up dedicated dialogues\u201d on business visas and the recognition of professional qualifications, another manifesto promise.<\/p>\n","protected":false},"excerpt":{"rendered":"The EU and UK have announced a \u201creset\u201d of their relationship some four years after the original post-Brexit&hellip;\n","protected":false},"author":2,"featured_media":131837,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5226],"tags":[802,748,2000,299,5187,1699,4884,16,15],"class_list":{"0":"post-131836","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-brexit","8":"tag-brexit","9":"tag-britain","10":"tag-eu","11":"tag-europe","12":"tag-european","13":"tag-european-union","14":"tag-great-britain","15":"tag-uk","16":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114571027684878795","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/131836","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=131836"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/131836\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/131837"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=131836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=131836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=131836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}