In a landmark development this week, the United Kingdom and the European Union have reached a new agreement aimed at streamlining trade, supporting jobs, and enhancing economic cooperation, without re-entering the Single Market or Customs Union. This is the third major trade breakthrough for the UK in recent weeks, following deals with the United States and India.
Key Elements of the Agreement UK-EU
Sanitary and Phytosanitary (SPS) Deal
A cornerstone of the agreement is the permanent SPS roadmap, which slashes red tape on food and drink trade between the UK and EU.
What changes?
Routine checks on many animal and plant products will be removed, reducing border delays and bureaucracy.
Why it matters:
Faster flow of goods and clearer compliance requirements will benefit not only GB-EU trade but also movements to and from Northern Ireland, a historical friction point.
Emissions Trading Alignment
The UK and EU have agreed to link their Emissions Trading Systems, ensuring UK exporters avoid a looming €800 million EU carbon tax.
This not only supports the green agenda but also preserves the competitiveness of British industries.
Market Access Gains
Key British products like sausages and burgers, which faced post-Brexit export restrictions, will return to EU shelves, helping revive a sector that saw over 20% decline in exports.
Economic and Sectoral Impact
The UK government estimates that the combined SPS and emissions measures alone will add £9 billion to the UK economy by 2040.
Other industry-specific wins include:
- Steel: A bespoke arrangement protects UK steel from EU tariffs, saving £25 million/year.
- Fishing: A 12-year deal secures existing fishing rights, backed by a £360 million investment into UK coastal communities.
- Holiday & Pet Travel: More access to eGates for UK travellers and simplified pet passports remove additional costs and time.
Security and Youth Mobility
The deal introduces a new Security and Defence Partnership, enabling UK participation in the proposed €150 billion SAFE fund and expanding law enforcement data-sharing (including facial recognition data).
In a nod to cultural and labour mobility, both parties have agreed to explore a youth mobility scheme, similar to those with Australia and New Zealand. This could pave the way for temporary work and travel opportunities for young UK and EU citizens.
CATTS’ Perspective
From the viewpoint of customs and trade professionals, this deal marks a return to predictability, clarity, and trust-based cooperation. It shows that even post-Brexit, the UK and EU can pursue pragmatic frameworks that reduce friction and encourage business investment.
At CATTS, we see this as a sign that long-term stability is returning to UK-EU trade relations, something our clients have been struggling with since 2020.
We will continue to monitor how these commitments are implemented at the border and across regulatory regimes, and ensure that our clients are equipped to benefit from reduced compliance burdens and expanded trade access.
Need help adjusting to the new UK-EU agreement or preparing for SPS and emissions changes? Let’s talk about how CATTS can help you stay compliant, competitive, and ready for what’s next.
Source: https://www.gov.uk/government/news/pm-secures-new-agreement-with-eu-to-benefit-british-people