21.05.2025

Amid the political optics and choreography during Monday’s Summit in London, we were provided evidence of a firmer foundation for future relations between the UK and EU. The term ‘reset’ had a ‘use by’ date which was nearing its end of life before May.

The outcome was more detailed than expected so the ‘term’ has successfully reached its useful life.

What's noticeable....

The ‘red lines’ of the UK Government prior to the 2024 General Election have (broadly) been met. The EU can continue to ensure that the Trade & Cooperation Agreement (TCA) remains broadly unaltered, except where the EU see opportunities to ‘flex’ TCA commitments for mutual advantage.

The announcements on agri-food and electricity markets ‘flex’ single market access for the UK as a non-EU member. In the case of the electricity market, there were scheduled talks in 2026 to renew a time-limited provision in the TCA. Both will come with an anticipation that of a ‘level of rule taking’ and EU jurisdictional oversight.

The observations come coated with the phrase ‘nothing is agreed until legally agreed’.

The Summit's announcement was ‘agreement in principle’ only - there is still a lot of detail to be negotiated, to be confirmed in legal text and bi-laterally agreed treaties. It will mean that some of the provisions ultimately will need primary UK legislation. 

Key announcements....

  • Agri-food: A future agreement should help with agri-food imports and exports between GB-EU and GB-NI.
  • Energy: A future alignment on respective energy trading schemes can lead to linkage in Carbon Border Adjustment Mechanisms.
  • EU e-gate use: For any reason to travel to the EU, gaining access through e-gates will reduce border controls. It will depend on each Member State to introduce, and probably after the introduction of scheduled changes to wider EU border access arrangements later this year.
  • Defence and security pact: The principle of UK accessing EU procurement arrangements is important, if as again the mechanics are to be agreed. The UK’s inherent capability in defence/ security solutions, current collaboration on pan-Europe platforms and NATO leadership, will give weight to any future partnership.

In other news…

The UK and EU have agreed an extension to EU fishing rights in UK waters. This was scheduled for talks in 2026, but an extension to 2038 rather than an annual renegotiation favours the EU. 

A youth mobility/access scheme has been long cherished by the EU. Though beneficial for both UK and EU youth citizens, the UK didn’t accept the idea in 2020. It’s now on the table but requires more detailed talks and resolution.

The Summit was not going to address the frictions and challenges in the UK-EU TCA.  That was always for another time. 

Perhaps as a start to that is when both sides ‘take stock’ of the TCA agreement next May. The next UK-EU Summit could coincide with this and therefore allows a conclusion that more can be done to relieve trade frictions that currently exist.

In summary, progress ‘in principle’ has been achieved but there is a lot of negotiations and conclusions reached. A process that is the hallmark of classic negotiations in London and Brussels.

Both sides will need to show endeavour, spirit, commitment and focus. The balance on gaining progress in the next year or so rests with the UK. 

It is though, excellent foundations to start from….