Building Bridges on Defence, Trade, Energy and Mobility revitalise EU-UK relationship

At the EU–UK Summit held on Monday, 19 May 2025, in London, Prime Minister Keir Starmer and European Commission President Ursula von der Leyen unveiled a comprehensive agreement aimed at revitalizing post-Brexit relations. This "reset" encompasses significant developments in trade, defence, mobility, and energy cooperation.

Key Agreements from the Summit

1. Defence and Security Partnership

The UK and EU established a new defence and security pact, granting British defence firms access to the EU’s €150 billion SAFE program for joint military procurement. This agreement enables UK companies to participate in EU-funded defence projects, enhancing collaborative efforts in European security. 

2. Trade and Border Reforms

To streamline commerce, the agreement removes checks on British food exports to the EU, including products like sausages and burgers, and simplifies border procedures. Additionally, a 12-year extension of reciprocal fishing access rights was agreed upon, allowing EU fleets to operate in UK waters until 2038. 

3. Youth Mobility and Cultural Exchange

Both parties committed to initiating negotiations for a youth mobility scheme, facilitating opportunities for young people to live, work, and study across the UK and EU. Discussions also included the UK's potential rejoining of the Erasmus+ program, aiming to restore educational and cultural exchanges. 

4. Energy and Environmental Cooperation

The UK and EU agreed to link their carbon trading systems, aiming to reduce costs for UK exporters and strengthen joint climate initiatives. This collaboration is expected to enhance energy efficiency and support the transition to renewable energy sources. 

5. Travel and Border Facilitation

The agreement includes provisions for UK travelers to use EU eGates, expediting border crossings. Simplified pet travel rules were also introduced, easing restrictions for pet owners traveling between the UK and EU. 

6. Economic Impact

The UK government projects that these measures could contribute up to £9 billion annually to the UK economy by 2040, through enhanced trade, reduced bureaucracy, and increased market access. 

Greater Manchester Chamber of Commerce has welcomed the deal agreed at a summit between EU and UK leaders yesterday.  Commenting on the UK-EU Leaders Summit, Policy Director at Greater Manchester Chamber, Chris Fletcher, said: “Anything that helps trade with the EU has got to be welcomed and this feels like a significant first step in creating a new relationship with the EU. For too long since Brexit businesses have had to contend with damaging delays, excessive paperwork and extra costs dealing with our largest overseas market. Now it seems that there is some shift towards making that easier.

"Coming off the back of the Indian Trade Deal and the deal with the US this does feel like the UK getting its act together, recognising the reality of how the world is now and trying to carve a path through.

"There will no doubt be more announcements made as the details become clearer and we call on government to back this up with recognition that many businesses will need help and support to take advantage of what has been agreed. Businesses need access to good international advice and expertise, the type available through Chambers of Commerce and we look forward to helping our members grow and develop their trade opportunities.”

Susana Córdoba, Head of International Trade at Greater Manchester Chamber also added : "This is good news for traders, especially for those trading food products, as this is one of the sectors that has seen a sharp decline in exports since new regulatory framework & checks came in place, and for companies operating in the defence sector, opening the opportunity to link with EU Funded programmes seeking to strengthen security in the continent. We also welcome the positive discussions around Youth Mobility and easier travel and cross-border facilitation- these can really benefit the UK accessing young talent across Europe. Many of the above were asks that the British Chamber of Commerce Network put forward, so we are pleased to see the government listen and has taken action to improve and strengthen the relationship with our largest trading partner"

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Seven asks from the British Chambers of Commerce

The British Chambers of Commerce are urging the UK Government to look at trade, and the 7 top asks include:

• Negotiate a UK-EU deal which either eliminates or greatly reduces the complexity of exporting food and plant products for SMEs.   

•  Produce a balanced Youth Mobility scheme between the UK and EU, covering school visits and exchanges, and a time-limited ability to work for young people.    

• For the UK to rejoin the Pan-Euro-Mediterranean (PEM) convention to align rules on raw materials and components that can be used in exports without incurring tariffs.     

• Establish a supplementary deal, like Norway’s with the EU, that exempts smaller UK firms from the requirement to have a fiscal representative for VAT in the EU.     

• Make a deal to allow UK firms to travel and work for longer in Europe and vice versa, and provide mutual recognition of professional qualifications.      

• Link the Emissions Trading Schemes of the UK and EU to avoid charges on carbon embedded in exports in both directions.  

• Negotiate a formal Defence and Security Pact providing clear lines of co-operation and secondary agreements. Allowing UK companies to bid for defence procurement contracts in the EU, in consortia with EU partner companies on a ‘pay to play’ basis. 

  
  

  Research by the BCC has shown that two fifths (41%) of UK exporters disagree the Brexit deal is helping them grow sales. Conversely, only 14% of UK exporters think the deal is helping them.  

  Companies say the biggest barriers to exporting to the EU are customs procedures and documentation (45%), export documentation (39%), regulations and standards (35%) and tariffs (33%).    Awareness of upcoming changes in trade rules and regulations being made by either the UK or the EU are also alarmingly low, with more than three quarters of firms knowing no details of much of the legislation.    

Sources: The Guardian, British Chambers of Commerce, House of Commons Library - Resetting the UK's Relationship with the European Union, The Times,