Opening the first EU–UK summit since Brexit, prime minister Keir Starmer described the agreement as "a new era in our relationship" and "a new strategic partnership fit for our times."
President of the European Commission, Ursula von der Leyen, Keir Starmer, and president of the European Council, Antonio Costa arrive to attend the UK-EU Summit at Lancaster House on May 19, 2025 in London. (Photo: Getty Images)
Vivek Mishra works as an Assistant Editor with Eastern Eye and has over 13 years of experience in journalism. His areas of interest include politics, international affairs, current events, and sports. With a background in newsroom operations and editorial planning, he has reported and edited stories on major national and global developments.
THE UK and the European Union on Monday reached a landmark agreement to strengthen cooperation on defence and trade, signalling a new chapter in relations following the UK's departure from the bloc in January 2020.
Opening the first EU–UK summit since Brexit, prime minister Keir Starmer described the agreement as "a new era in our relationship" and "a new strategic partnership fit for our times."
At a joint press conference with European Commission President Ursula von der Leyen and European Council President Antonio Costa, Starmer called the deal a "win-win" and said it was "good for both sides."
Following months of negotiations, the two parties agreed to hold more regular security discussions as part of a new defence arrangement.
The UK and the EU have agreed to a new security and defence partnership. This comes at a time when European countries are increasing their military readiness in response to threats from Russia and concerns over the policies of US President Donald Trump.
Under the agreement, British representatives will be allowed to attend certain EU ministerial meetings and take part in European military missions and exercises.
The partnership also aims to integrate the UK’s defence industry more closely with European efforts to build a domestic industrial base.
It opens the possibility for British firms to access a 150-billion-euro EU fund, which is currently under negotiation among the 27 EU member states. A separate agreement and financial contribution from the UK will be required to enable this.
Companies such as BAE Systems and Rolls-Royce are expected to benefit from this arrangement.
Burgers and pets
The agreement includes a commitment to reduce checks on food and plant products in future trade, which had been a key demand from London.
"This would result in the vast majority of movements of animals, animal products, plants, and plant products between Great Britain and the European Union being undertaken without the certificates or controls that are currently required by the rules," the agreement text states.
The EU remains the UK's largest trading partner. However, UK exports to the EU have fallen by 21 per cent since Brexit, and imports are down seven per cent.
Prime minister Starmer said that British products such as burgers, sausages, shellfish and others will now be able to return to EU markets. He also said that Britons will find it easier to travel with their pets.
The UK has agreed to a form of dynamic alignment with EU sanitary and phytosanitary rules, with the ability to adjust over time. Some exceptions may apply.
A new independent dispute resolution mechanism will be created, but the European Court of Justice will remain the final authority.
Other economic aspects of the agreement include closer cooperation on emissions quotas. This will allow UK businesses to avoid paying the EU’s carbon border tax.
According to Downing Street, these measures could add "nearly £9 billion (10.7 billion euros) to the British economy by 2040".
Fisheries
The fisheries section of the agreement was of particular concern to France and was considered essential for broader UK–EU cooperation.
The UK has agreed to extend an existing arrangement allowing European vessels to fish in British waters and vice versa until June 2038. The current deal was due to end in 2026.
Downing Street said this extension would provide stability for fishing crews while maintaining current catch levels for EU vessels in British waters.
The deal drew criticism in Scotland. Scottish First Minister John Swinney said the fishing sector "seems to have been abandoned" by London. The Scottish Fishermen’s Federation described the agreement as a "horror film".
French fisheries minister Agnès Pannier-Runacher welcomed the deal, saying it "will provide economic and political visibility for French fishing".
Youth mobility
The EU has pushed for a youth mobility scheme to allow young people to study and work temporarily across borders. The UK has not made a firm commitment on this and remains cautious of any move resembling free movement.
The agreement text does not mention "mobility" but expresses a shared interest in developing a "balanced programme" to let young people work, study, volunteer or travel across the UK and EU under future conditions.
Discussions also included the possibility of the UK rejoining the Erasmus+ student exchange programme.
The number of EU students studying in the UK has fallen from 148,000 in 2019–2020 to 75,500 in 2023–2024.
Border crossings
To make travel smoother, both sides agreed to "continue discussions" to allow UK nationals more access to "eGates" at EU borders.
Downing Street said this would help British holidaymakers avoid long queues at European airports.
Britain’s food retailers have said that higher employer taxes and regulatory costs as well as increased staff wages are adding to inflationary pressure
British grocery inflation nudged down to stand at five per cent over the four weeks to 10 August, data from market researcher Worldpanel by Numerator showed on Tuesday (19), providing a little relief for consumers.
The figure, the most up-to-date snapshot of UK food inflation, compared with 5.2 per cent in last month’s report.
“We’ve seen a marginal drop in grocery price inflation this month, but we’re still well past the point at which price rises really start to bite and consumers are continuing to adapt their behaviour to make ends meet,” Fraser McKevitt, head of retail and consumer insight at Worldpanel, said.
The researcher said prices were rising fastest in markets such as chocolate, fresh meat and coffee and falling fastest in champagne and sparkling wine, dog food and sugar confectionery.
Britain’s food retailers have said that higher employer taxes and regulatory costs as well as increased staff wages are adding to inflationary pressure from higher prices for commodities.
Trade body the British Retail Consortium, which represents Britain’s biggest retailers, predicts that food inflation will hit 6 per cent by the end of the year, putting more pressure on household budgets in the run-up to Christmas.
The Bank of England has forecast it will hit 5.5 per cent before Christmas and then fall back as global wholesale factors fade.
Official UK inflation data for July will be published on Wednesday. (Reuters)
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In his Independence Day address, Modi said the goods and services tax (GST) would be reformed and rates lowered by Diwali, which falls in October. (Photo: Getty Images)
INDIA’s government will reduce consumption tax rates by October, a top official said on Friday, hours after prime minister Narendra Modi announced reforms to support the economy amid trade tensions with the United States.
The federal government is planning a two-rate structure of 5 per cent and 18 per cent, removing the existing 12 per cent and 28 per cent slabs, the official told Reuters, requesting anonymity as the plans are still under discussion.
According to the official, 99 per cent of items currently taxed at 12 per cent, including butter, fruit juices, and dry fruits, will be shifted to 5 per cent. The move could affect companies such as Nestle, Hindustan Unilever, and Procter & Gamble.
The announcement follows rising trade tensions between New Delhi and Washington over US tariffs on Indian goods. Modi on Friday urged people to promote domestic products, with some of his supporters calling for a boycott of American goods.
In his Independence Day address, Modi said the goods and services tax (GST) would be reformed and rates lowered by Diwali, which falls in October.
"This Diwali, I am going to make it a double Diwali for you. Over the past eight years, we have undertaken a major reform in goods and services tax. We are bringing next-generation GST reforms that will reduce the tax burden across the country," Modi said.
The final decision will be taken by the GST Council, chaired by the finance minister and comprising state finance ministers, the official said. The council is expected to meet by October.
Brokerage Citi estimates that about 20 per cent of items, including packaged food, beverages, apparel and hotel accommodation, are in the 12 per cent slab. These account for 5-10 per cent of consumption and 5-6 per cent of GST revenue.
If most of these are moved to the 5 per cent slab and some to 18 per cent, the government could see a revenue loss of about 500 billion rupees, or 0.15 per cent of GDP, Citi said. This could take the total policy stimulus for households in the 2025-26 financial year to 0.6-0.7 per cent of GDP, it added.
(With inputs from agencies)
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CEO of Morrisons Rami Baitiéh (centre) takes on the Heera Foods Gol Gappay challenge
Morrisons chief executive Rami Baitiéh took part in a lively “Gol Gappay Challenge” at the supermarket’s Bradford headquarters on Tuesday, as part of celebrations for South Asian Heritage Month.
The event, hosted in the company’s central atrium, was led by Bradford-based Heera Foods, which served up its popular Gol Gappay – crispy puris filled with spiced chickpeas and tangy water – to staff and visitors.
The highlight was a 60-second eating contest where colleagues competed to finish as many Gol Gappay as possible before the clock ran down. To cheers from the crowd, Baitiéh joined in and managed four in a minute.
“It was fantastic to see the CEO of one of the UK’s biggest supermarkets join in with such enthusiasm,” said Noor Ali, senior commercial manager at Heera Foods. “Gol Gappay, also known as pani puri, are all about fun, flavour and bringing people together, and Rami certainly embraced that spirit.”
The open day formed part of Morrisons’ program of events showcasing South Asian food and culture. For Heera Foods, one of Bradford’s longest-standing South Asian brands, it was an opportunity to highlight a snack loved across the subcontinent.
Heera Foods, part of P&B Foods Ltd, has been based in Bradford since the 1960s and produces a wide range of South Asian staples and ready-to-eat products from its UK facility.
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When Mounjaro was launched in Britain, Lilly set a list price 'significantly below' that in its other three European markets to avoid delays in NHS availability. (Photo: Reuters)
ELI LILLY said on Thursday it will increase the UK list price of its weight-loss drug Mounjaro by up to 170 per cent. The price change comes as the White House urges drugmakers to raise prices in Europe to enable price cuts in the United States.
The new price, which also applies to Lilly's type 2 diabetes medicine sold under the same name, will take effect in September. A month's supply of the highest dose will rise from £122 to £330, the company said.
The increase will apply to those paying for Mounjaro privately but will not affect patients receiving it through the National Health Service (NHS), which has a separate pricing agreement, a Lilly spokesperson said.
When Mounjaro was launched in Britain, Lilly set a list price “significantly below” that in its other three European markets to avoid delays in NHS availability. “We are now aligning the list price more consistently,” the company said.
The change comes as drugmakers adjust to policy shifts in the United States, their largest market, where president Donald Trump is seeking lower domestic drug prices while encouraging increases overseas.
Last week, Lilly CEO David Ricks told investors that price parity between the US and Europe was desirable over time, but said European governments “are not signing up to pay more for drugs.”
The US pays more for prescription drugs than any other country, often nearly three times more than other developed nations. Trump says he wants to narrow this gap to prevent Americans from being “ripped off.”
Reuters reported last week that the Trump administration has been in talks with drugmakers about ways to equalise prices across markets.
A list price is the amount set by a drug manufacturer before any discounts or rebates.
Lilly said it is working with private UK healthcare providers, including online pharmacies, which can set their own prices, to maintain access to the medicines.
Lilly launched Mounjaro in the UK in February 2023, while rival Novo Nordisk’s Wegovy became available in the country in September 2023.