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UK and EU reset ties with new deals on trade, security, and mobility post-Brexit.

News in Detail

Five years after the United Kingdom (UK) formally exited the European Union (EU) on January 31, 2020, the two sides announced a "reset" deal on May 19, 2025, to strengthen ties.

The agreement aims to normalize economic relations, strengthen security cooperation, and address post-Brexit challenges.

The deal responds to a rapidly shifting geopolitical landscape and aims to undo some of the frictions caused by Brexit.  

Why Are the UK and EU Seeking a Reset Now?

Geopolitical Shifts => The Russia-Ukraine war (since 2022) has reshaped the European security landscape. The UK has led efforts to support Ukraine, including sanctions on Russia and military aid. The EU, too, has imposed sanctions and aimed to strengthen its defense capabilities.

• With US President Donald Trump’s return in 2025 and his “America First” policy, the US has pushed the EU to reduce dependence on American defense support. This has prompted the EU to propose a $200 billion Security Action for Europe (SAFE) fund.
• The UK, with its strong defense industry, sees an opportunity to collaborate and access the fund, to strengthen Europe’s collective security.

Economic Pressures => Brexit created trade barriers, which increased costs for UK businesses exporting to the EU. The UK government estimates that aligning with EU food standards could boost the economy by $12 billion by 2040. Trump’s tariffs threaten global trade. The UK secured a deal with the US to save $8.69 billion from tariffs, but aligning with the EU on carbon taxes and trade rules offers additional economic stability.

Domestic Political Goals => Labour Party, elected in 2024, promised to “reset” UK-EU relations without rejoining the single market, customs union, or restoring free movement. They aim to reduce trade frictions, lower food prices, and create jobs. The reset deal aligns with their manifesto to boost economic growth and address Brexit’s fallout, such as labor shortages and reduced investment.

Highlights of the UK-EU Reset Deal

Fishing Agreement => Extends EU fishing access to UK waters until June 2038, a 12-year extension from the 2026 expiry. This maintains the status quo, with yearly quotas set with the EU and Norway. In return, the UK gains easier access to EU markets for its fish, benefiting coastal communities. 

Agrifood (Sanitary and Phytosanitary) Agreement => The sanitary and phytosanitary agreement (SPS) agreement reduces border checks on UK food exports, like meat, dairy, and vegetables, to the EU. This eliminates health and veterinary certifications, helping small businesses like cheese and sausage makers.

Security and Defense Pact => The deal formalizes cooperation on hybrid warfare, cybersecurity, and maritime safety. It allows UK firms, like BAE Systems, to bid for the EU’s €150 billion SAFE fund, supporting jobs and defense innovation. The UK and EU will share intelligence to combat cross-border crime.

Youth Mobility Scheme => Labeled a “youth experience scheme”, it will allow 18- to 30-year-olds to work, study, or travel between the UK and EU for a limited period, likely two to three years. 

Passport and Travel Measures => UK travelers can use e-gates at EU airports, reducing passport queues. A “pet passport” system will simplify travel for cats and dogs, removing the need for repeated vet certificates.

Carbon Tax and Emissions Trading =>The UK will link its carbon trading system with the EU’s Carbon Border Adjustment Mechanism (CBAM), saving $1.07 billion in taxes on goods like steel and cement. This protects UK industries from EU tariffs and supports climate goals.  

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INDIAN EXPRESS

PRACTICE QUESTION Q.Arrange the following peninsula of Europe in Left to Right direction? 1. Crimean Peninsula  2. Italian Peninsula  3. Balkan Peninsula 4. Iberian Peninsula  Select the correct answer using the codes given below: A) 1-2-3-4 B) 4-2-3-1 C) 1-2-4-3 D) 1-3-2-4 Ans: B Explanation The correct order from Left to Right (West to East) is Iberian Peninsula (4)-Italian Peninsula (2)-Balkan Peninsula (3)-Crimean Peninsula (1).