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BreakingNews.ie
19-05-2025
- Business
- BreakingNews.ie
Explained: What's in the UK's new deal with the EU?
The UK agreed the most significant reset of relations with the European Union since Brexit on Monday, with both sides hailing deals on everything from trade and migration to security and defence. Below are the main points agreed. Advertisement Defence and security pact Britain's Labour government and the EU clinched a defence and security pact that previous Conservative governments opted not to seek when Brexit was first negotiated. Both sides agree it is imperative for European countries to work more closely together on defence, given Russia's invasion of Ukraine and calls by US president Donald Trump for Nato's European members to shoulder more of the burden of the alliance. As part of the reset, Britain will agree a new security and defence partnership, which it said would "pave the way" for British companies to access a €150 billion programme to rearm Europe. Britain will also consider taking part in EU civilian and military crisis management and be able to participate in joint procurement with the bloc. Advertisement Food standards Outside the defence and security partnership, the rest of the agreement was outlined in a "common understanding" document, which listed areas of agreement and shared intentions while saying some details still needed to be finalised in the coming weeks and months. Central to Labour's plans for an EU reset was a veterinary agreement with the EU aimed at preventing unnecessary border checks on agricultural produce such as meat and dairy. The so-called Sanitary and Phytosanitary agreement will have no time limit, giving British businesses more certainty. The deal would maintain high food standards, which Britain also insisted were not lowered in its discussions with the US to remove tariffs. Advertisement The deal was welcomed by groups in Northern Ireland, including the Ulster Farmers' Union (UFU), which said the agreement was a "major step forward" for the North's agri-food industry. UFU president William Irvine said: "This is a significant breakthrough. A huge amount of work has gone in at UFU level over many years to get to this point. The majority of what we have been lobbying for is now reflected in this agreement. It brings real, long-term certainty for our members and the wider agri-food industry. "An end to burdensome SPS paperwork, removal of checks on goods moving to Northern Ireland, inclusion of second-hand machinery, progress on the movement of live cattle, pesticide regulations and rules on organics – these are all key wins." Mobility A youth mobility scheme to make it easier for under-30s to travel and work between Britain and the EU is a priority for the bloc, and the two sides said they would work towards a youth mobility deal. Advertisement Britain said any scheme would be capped and time-limited. British prime minister Keir Starmer's office reiterated that it would not mark a return to freedom of movement, with controls on how many people would use the scheme, and how long they could stay. The two sides also agreed to work more closely together on tackling irregular migration. Fisheries Britain and the EU will extend full reciprocal access to waters to fish until June 30th, 2038, extending by 12 years provisions that were due to expire in 2026. Britain said the deal would not result in an increase in the amount of fish EU vessels can catch in British waters. Advertisement Britain will also invest £360 million (€ into its fishing industry towards new technology and equipment to modernise the fleet. The post-Brexit trade agreement transferred existing quotas to the bloc for a transition period, after which they would be negotiated on an annual or multi-annual basis. Fishing has long been a source of tension. The EU has taken Britain to court over its ban of fishing for sand eels in UK waters. Electricity Britain left the EU's internal energy market after Brexit, but the UK's energy industry is pushing for more efficient and closer electricity trading arrangements with the bloc. The two sides will now explore Britain's participation in the EU's internal electricity market. Britain imported around 14 per cent of its electricity in 2024, a record high, through power links with Belgium, Denmark, France and Norway. Carbon markets World Starmer strikes post-Brexit reset deal with EU Read More Many EU and British businesses have called for the EU and UK carbon markets to be linked. They already collaborate on charging power plants and other industrial entities for their carbon emissions to reach climate targets. Britain and the EU will now work towards establishing a link between their emission trading systems - which Britain said would improve energy security and help businesses avoid an EU carbon tax due to come into force next year. Industry analysts have said linking the two carbon markets would probably drive up UK prices, which are lower than in the EU, to EU levels. Other areas The mutual recognition of certain professional qualifications, changes to ease travel for touring artists and data-sharing are all areas where Britain and the EU may seek to pursue future agreement.
The Guardian
14-05-2025
- Business
- The Guardian
China issues warning to UK over terms of US trade deal
China has warned the UK over its new trade deal with the US, accusing Britain of aligning with the US in a move that could compel British companies to exclude Chinese products from their supply chains. The UK-US trade deal, signed last week, offers Britain limited relief from US tariffs on car and steel exports, but only if it complies with strict American security requirements. These conditions include scrutinising supply chains and ownership structures – a move widely interpreted as targeting Chinese involvement. Beijing argues the agreement violates the principle that international agreements should not target third countries, noting this is a 'basic principle'. China's foreign ministry criticised the agreement in a statement to the Financial Times. It said: 'Cooperation between states should not be conducted against or to the detriment of the interests of third parties.' Beijing fears these clauses are designed to pressure allies into excluding Chinese products, in effect isolating China economically. China is doubling down on what it calls 'dual circulation' – boosting domestic production and resilience so its economy can thrive. State-backed companies are being pushed to source components locally, and ministries are funnelling support into advanced manufacturing and green technology. Under the the UK-US signed last week the US agreed to reduce tariffs on British car exports from 27.5% to 10%, applicable to a quota of 100,000 vehicles annually. Tariffs on UK steel and aluminium have also been lifted, provided British companies meet strict US security conditions, particularly around supply chain transparency and foreign ownership – measures that implicitly limit Chinese involvement. The deal also includes liberalised quotas for US beef and ethanol exports to the UK, alongside a commitment to explore deeper cooperation in pharmaceuticals and advanced manufacturing, contingent again on UK compliance with US security provisions. The timing of the UK-US trade agreement is sensitive given Keir Starmer's government has been seeking to improve relations with China. Despite the tension, No 10 says the trade deal is intended to secure jobs and protect British businesses. A UK government spokesperson maintained that 'trade and investment with China remain important to the UK', emphasising a pragmatic approach to international relations. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Earlier this year, the chancellor, Rachel Reeves, visited Beijing to restart economic and financial dialogues that had been dormant for six years. Other Chinese officials also criticised the UK's decision to accept the US deal's terms, viewing it as a departure from their efforts to rebuild bilateral ties. Zhang Yansheng, a senior researcher at the China Academy of Macroeconomic Research, said the UK's actions were 'not fair to China'. He described the deal's clauses as 'poison pills' that were worse than tariffs.
