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UK and EU 'reset' relations after Brexit: How will it change work, trade and travel?
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  • UK and EU 'reset' relations after Brexit: How will it change work, trade and travel?

UK and EU 'reset' relations after Brexit: How will it change work, trade and travel?

FP Explainers • May 20, 2025, 11:49:33 IST
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In a historic post-Brexit reset, the UK and European Union have struck a comprehensive new deal spanning trade, security, youth mobility and climate cooperation. From easing food checks to reviving student exchanges and boosting defence ties, the agreement marks the most significant re-alignment between the two sides since Brexit

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UK and EU 'reset' relations after Brexit: How will it change work, trade and travel?
UK Prime Minister Keir Starmer and President of the European Commission, Ursula von der Leyen attend a press conference at the UK-EU summit at Lancaster House on May 19, 2025 in London, England. Reuters

Five years after Britain’s formal exit from the European Union, the United Kingdom and the EU have unveiled a sweeping new agreement aimed at rebuilding their economic, political and security ties.

The deal follows six months of intensive negotiations promised by UK Prime Minister Keir Starmer when he assumed office in July 2024, and marks the most significant reset of relations since Brexit.

The agreement spans a wide range of sectors — including trade, border mobility, defence cooperation, migration, education and digital security — as both sides attempt to navigate a transformed global landscape .

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What changes with the new UK-EU deal?

A central pillar of the agreement is a new trade framework that seeks to dismantle many of the post-Brexit obstacles that have slowed commerce between the UK and the EU.

Food, drink, and agricultural products

Most notably, a new sanitary and phytosanitary (SPS) protocol has been signed to eliminate the majority of routine checks on food, drink and agricultural products moving between the two regions.

This means British exporters will no longer require cumbersome certification processes for animal and plant-based goods.

For consumers, this could translate into lower prices and a broader range of food products returning to supermarket shelves — including items like sausages and burgers that had been restricted under earlier post-Brexit trade rules.

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Further, red tape on cross-border deliveries is expected to ease, which could cut down lorry wait times at ports and reduce overall business costs.

Steel

British steel producers have also gained relief under the agreement, as new EU tariffs will be waived — a move that officials say could save the UK’s steel sector approximately £25 million annually.

Fishing rights

In terms of fishing rights, one of the most sensitive and politically charged issues during Brexit, the deal extends EU access to British waters until June 30, 2038. While it falls short of permanent access — something sought by coastal EU nations — the 14-year extension is far longer than the UK’s initial proposal.

EU vessels will continue to need valid licenses and will participate in annual quota discussions. The UK government has simultaneously pledged £360 million to modernise its fishing industry, aiming to boost equipment, training, seafood exports, and support coastal economies.

“Youth experience scheme” for students

Beyond commerce, the two sides have agreed to open negotiations on an ambitious “youth experience scheme,” which would facilitate greater movement of young people aged 18 to 30 between the UK and EU member states.

The proposed programme — encompassing work, travel, study, volunteering, and au pair roles — stops short of immediate implementation. However, both parties have committed to working toward a framework, with key details still under discussion.

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The program replaces earlier plans for a “youth mobility scheme” but avoids framing it as an immigration initiative. As per an EU fact sheet, “The exact conditions related to this scheme will be decided during the negotiations.”

While British negotiators resisted European pressure to reduce tuition fees for EU students at UK universities, both sides expressed interest in reestablishing educational ties.

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Talks are expected to focus on reviving participation in the Erasmus student exchange programme, which the UK had exited during Brexit. Although the framework is yet to be finalised, both parties described the move as a priority.

So glad that we’ve agreed to have Erasmus+ for our young people.

And to work towards a youth experience scheme.

This will allow the next generation to once again live and study in each other’s countries.

From my own experience, this will build friendships that last a lifetime. pic.twitter.com/sSWtqPcyIw

— Ursula von der Leyen (@vonderleyen) May 19, 2025

On professional mobility, the agreement includes plans to streamline visa issuance and mutually recognise qualifications across industries. There will also be cooperative efforts to curb visa abuse by third-country nationals.

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Travel and policies around pets

For British travellers, the new agreement brings a series of welcome changes. UK passport holders will soon be eligible to use a wider network of electronic passport gates (eGates) at EU borders — a measure intended to alleviate the long lines at passport control that have become common since Brexit.

In addition, pet owners in the UK will no longer need to acquire expensive veterinary certificates for each trip with their animals.

The reintroduction of pet passports will allow cats and dogs to move between the UK and EU with far less bureaucracy — a return to pre-Brexit convenience for thousands of pet owners.

Defence & security

One of the most consequential outcomes of the summit is a robust security and defence agreement designed to reintegrate the UK into European defence frameworks.

With the war in Ukraine showing delayed signs of resolution and US global leadership increasingly uncertain, both sides highlighted the need to strengthen regional stability.

The UK will now be eligible to participate in the EU’s €150 billion Security Action for Europe (SAFE) fund — a major platform for joint defence procurement and innovation. This access allows British defence firms to collaborate in the EU’s rearmament initiatives, which are expected to generate thousands of jobs in the UK.

This is a new chapter in our 🇪🇺🇬🇧 partnership.

Starting with our Security & Defence Partnership.

It’s first step towards the UK’s participation in our defence industrial readiness SAFE ↓ https://t.co/pexS79xQAO

— Ursula von der Leyen (@vonderleyen) May 19, 2025
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“The EU and UK are providers of global stability,” said European Council President Antonio Costa. “We must be guardians of the rules-based global order.”

As part of the agreement, biannual high-level meetings will be held between EU High Representative Kaja Kallas and Britain’s foreign and defence ministers. These consultations will cover joint crisis management drills, classified information exchange and maritime safety cooperation.

Both the UK and EU will also coordinate more closely in the realm of criminal justice. They plan to enhance data-sharing for tracking terrorism and organised crime, and initiate discussions around British access to EU facial recognition systems — a move aimed at bolstering cross-border policing capabilities.

Energy & Climate

The two partners have also agreed to strengthen cooperation on emissions regulation. By linking the UK’s Emissions Trading Scheme with that of the EU, British businesses will avoid a looming carbon levy that could have cost them an estimated £800 million annually.

The UK’s emissions trading regime caps greenhouse gas emissions for major industrial sectors and allows companies to trade emission allowances. Closer alignment with the EU will ensure smoother carbon accounting across borders.

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In energy markets, both sides plan to assess the feasibility of UK participation in the EU’s internal electricity grid and trading platforms — a step that could boost renewable energy integration and cross-border power reliability.

Migration and Channel crossings

On the issue of illegal migration, particularly the dangerous crossings across the English Channel, both governments have committed to working together to address irregular arrivals and enforcement gaps.

Talks will cover the handling of returnees, faster deportation protocols, and technical cooperation on border management.

Starmer’s government faces political pressure from the right-wing Reform UK party, led by Nigel Farage, which has sharply criticised the youth exchange proposals. Some British tabloids have also expressed concern over perceived concessions, especially in the fisheries sector.

Despite the backlash, the Starmer has remained steady, arguing that the deal restores stability and restores Britain’s place as a “cooperative force” in Europe.

Why now?

This renewed partnership unfolds at a time when international alliances are in flux. The resurgence of Donald Trump as US President has made both London and Brussels increasingly aware of the volatility of transatlantic relations .

Within just two weeks, we have secured trade deals with India, the US and now the EU.

Prime Minister @Keir_Starmer is delivering for British people, British businesses, and British jobs. pic.twitter.com/q2cP6LQELx

— UK Prime Minister (@10DowningStreet) May 19, 2025
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Trump’s first term was marked by tariff disputes and pressure on Nato members to increase military spending — a trend that continues in his current presidency.

In recent weeks, UK also concluded a trade pact with the US aimed at offsetting the economic damage from American tariffs — a move that is projected to save the UK economy over £6.5 billion.

For Europe, forging deeper ties with UK — despite Brexit — reinforces its aspirations to act as a more unified global actor, especially when facing security threats on its eastern flank.

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With inputs from agencies

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Europe European Union Keir Starmer United Kingdom
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