Today's Edition
LONDON/BRUSSELS (REUTERS)
Britain agreed the most significant reset of ties with the European Union since Brexit on Monday, removing some trade barriers and collaborating on defence to help grow its economy and boost security on the continent.
Prime Minister Keir Starmer, who backed remaining in the EU, has bet that securing smoother access to Europe for UK visitors and trade will drown out criticism when he agrees to closer EU alignment at a summit in London.
But the deal contains political risk for Starmer as it touches on sensitive issues including fishing rights, and many of the agreements will require further negotiation.
The reset follows US President Donald Trump's upending of the global order, which has forced governments around the world to rethink ties on trade, defence and security, and brought Starmer closer to France's Emmanuel Macron and other European leaders.
Economists said the reset with the UK's biggest trading partner could have a larger impact on its sluggish economy than recent deals with India and the US, but its refusal to rejoin the EU's single market or customs union will limit that.
"It's time to look forward — to move on from the stale old political fights and to find common sense, practical solutions that improve the lives of British people," Starmer said on X.
At the heart of the reset is a defence and security pact that will let Britain be part of any joint procurement, but further agreement will be needed for British companies including BAE (BAES.L), Rolls Royce (RR.L), and Babcock (BAB.L), to take part in a 150 billion euro ($167 billion) programme to rearm Europe.
On fishing, British and EU vessels will have access to each other's waters for 12 years - removing one of the UK's strongest hands in any future talks - in return for a permanent reduction in paperwork and border checks that has prevented many small food producers from exporting to Europe.
Britain should also get access to faster e-gates for UK travellers at EU airports.
In return, it has agreed to the outline of a limited youth mobility scheme, with the details to be hammered out in the future, and it is discussing participation in the Erasmus+ student exchange programme.
Starmer is due to meet with European Commission President Ursula von der Leyen and European Council President Antonio Costa to sign the deal on Monday morning, after the two sides agreed the final details in the middle of the night.
Britain struck a full trade deal with India earlier this month and secured some tariff relief from the U.S., while the EU is seeking to forge trade deals with India and deepen partnerships with Canada, Australia, Japan, and Singapore.
Rather than seek a full return to a pillar of the EU like the single market, Starmer sought to negotiate better market access in some areas.
Removing red tape on food trade will require Britain to accept EU oversight on standards, but Starmer is likely to argue that it is worth it to help lower the cost of food.
