UK strikes trade, defence reset in ‘new era’ for ties with EU

Published May 20, 2025
EUROPEAN Council President Antonio Costa (left), Britain’s Prime Minister Keir Starmer and European Commission President Ursula von der Leyen address a joint press conference in London on Monday.—AFP
EUROPEAN Council President Antonio Costa (left), Britain’s Prime Minister Keir Starmer and European Commission President Ursula von der Leyen address a joint press conference in London on Monday.—AFP

LONDON: Britain and the European Union on Monday reached a landmark deal aimed at forging closer ties on defence and trade, launching what officials called a new chapter nearly nine years after the UK voted to leave the bloc and five years after its formal departure.

The wide-ranging agreement includes a security and defence pact, fewer restrictions for British food exporters and visitors to the EU, and a contentious new fishing agreement.

The move comes as global pressures, including former US President Donald Trump’s tariffs and calls for Europe to bolster its own defences, prompted a rethinking of international ties, drawing British Prime Minister Keir Starmer closer to European leaders.

Mr Starmer, who supported remaining in the EU during the 2016 Brexit referendum, is betting that practical benefits for Britons, such as access to faster e-gates at EU airports, will temper criticism from staunch Brexit advocates like Nigel Farage.

Deal draws criticism from Conservatives over accepting EU rules; Brexit advocates call fishing terms a ‘surrender’

Flanked by EU Commission President Ursula von der Leyen and European Council President Antonio Costa at London’s Lancaster House, Mr Starmer declared the deal marked “a new era in our relationship.”

Mr Von der Leyen emphasised European unity, saying, “At a time of global instability, and when our continent faces the greatest threat it has for generations, we in Europe stick together.”

The British government said the reset with its largest trading partner would cut red tape for agricultural producers, potentially making food cheaper, improve energy security, and could add nearly 9 billion pounds ($12.1 bn) to the UK’s approximately 2.6 trillion-pound economy by 2040.

This is the third significant international agreement for Britain this month, following pacts with India and the U.S. While not expected to provide an immediate economic surge, it aims to boost business confidence and attract investment.

Central to the agreement is a defence and security pact allowing Britain to participate in joint EU procurement. This could enable British companies, including BAE Systems, Rolls-Royce, and Babcock, to take part in a 150bn euro ($167bn) European rearmament program.

The fishing agreement grants British and EU vessels mutual access to each other’s waters for 12 years. In exchange, Britain secured a permanent reduction in paperwork and border checks that had hindered small food producers exporting to the EU. This concession, however, limits one of the UK’s leverage points in future negotiations.

Britain has also agreed in principle to a limited scheme for young EU and British citizens to live and work in each other’s territories, with details to be finalised later. Discussions are also underway regarding participation in the Erasmus+ student exchange program.

‘Abject surrender’

The opposition Conservative Party, which oversaw Britain’s EU exit, denounced the deal, claiming Britain will now be forced to accept EU rules.

Nigel Farage, leader of the pro-Brexit Reform UK party, called it an “abject surrender — the end of the fishing industry.” The Scottish Fishermen’s Federation described the fishing terms as a “horror show,” concerned that EU access to British waters will last longer than anticipated.

The Conservatives have dubbed the reset a “surrender summit” and a “sell-out”. “We’re becoming a rule-taker from Brussels once again,” said Tory leader Kemi Badenoch.

Improving relations

Chris Curtis, a Labour member of parliament, supported the deal, saying it would address issues from the Conservatives’ original Brexit agreement. “It is very easy to pretend that there are no tradeoffs, that you can get everything you want, and you don’t have to give anything away, but that is clearly baloney,” he told Reuters.

The 2016 referendum exposed deep divisions in Britain over issues from migration and sovereignty to trade. It ushered in a turbulent political period, with five prime ministers preceding Starmer, who took office last July, and strained relations with Brussels.

Current polls suggest a majority of Britons regret leaving the EU, though there is little appetite to rejoin. Mr Farage’s continued prominence in opinion polls gives Mr Starmer limited political space. However, collaboration between Britain and European nations on issues like Ukraine and managing relations with a Trump-led U.S. has helped rebuild trust.

Mr Starmer has focused on negotiating better market access in specific areas rather than seeking a full return to EU structures like the single market, wary of alienating Brexit voters. This approach is often viewed by the EU as “cherry-picking.”

To reduce red tape on food trade, Britain accepted EU oversight on standards. Mr Starmer argues this is a worthwhile trade-off for economic growth and lower food prices. Trade experts see this acceptance of EU oversight as politically astute for benefiting small businesses and farmers.

Published in Dawn, May 20th, 2025

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