Key points of the new UK–EU agreement

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.

Here are the key points of the deal between the UK and EU:

Security and defence

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.

(With inputs from AFP)