UK–EU Reset: New Trade and Defence Deal

On May 19, 2025, the United Kingdom and the European Union agreed to a new trade and defence deal that resets their post-Brexit relationship. The agreement, led by UK Prime Minister Keir Starmer, signals a shift towards pragmatic cooperation while maintaining the UK’s status outside the EU’s single market and customs union. Central to the deal are efforts to reduce trade friction, particularly around food and animal welfare standards, as well as energy cooperation. While the UK will align more closely with EU regulations in certain areas, it will not regain a direct voice in EU policy making, an aspect that has sparked debate over national sovereignty.

In the realm of defence and security, the agreement opens the door for UK companies to access the EU’s €150 billion defence fund, supporting joint military technology and procurement initiatives. A long-term fisheries deal extends EU access to UK waters until 2038, a move likely to provoke criticism from the British fishing sector. Additionally, the UK and EU have enhanced intelligence and law enforcement cooperation, allowing for better coordination on issues like illegal immigration and organized crime. While not fully restoring previous security arrangements, the deal marks a notable improvement in collaboration.

The agreement also touches on youth and educational exchanges, with talks underway for the UK to rejoin the Erasmus+ program, though no immigration reforms have yet been confirmed. While the deal has been praised by some as a realistic and forward-looking approach to UK–EU relations, others, particularly Brexit hardliners, see it as a potential erosion of the UK’s independence. Still, the agreement is widely viewed as a significant step in rebuilding trust and cooperation between Britain and its European Neighbours, setting the stage for more stable and constructive ties in the years ahead.