UK, EU establish new post-Brexit relationship

(VOVWORLD) - The leaders of the UK and the European Union on Monday signed agreements on defense and security, energy, and food trade, reshaping a closer relationship after a period of tension following Brexit at a time when Europe is facing major geopolitical challenges.

The deals were signed during the UK-EU Summit in London, the first major meeting between the two sides in the UK since the referendum in 2016 that led to Britain’s exit from the EU, commonly referred to as “Brexit”.

A new chapter in UK-EU relations

UK Prime Minister Keir Starmer said the three agreements will significantly benefit the UK. Economically, they are expected to reverse the post-Brexit decline in UK exports to the EU, down 21%, and generate around 12 billion USD for the country.

Speaking in front of the Parliament on Tuesday, Starmer said the negotiations were based on three main criteria: reducing household costs for British families, generating jobs, and enhancing border security. He emphasized that the new agreements with the EU, along with recent trade pacts signed with India and the US, will help restore the UK’s position on the global stage.

One of the most controversial points was a 12-year fishing agreement, under which the UK will allow EU fishing vessels to continue operating in British waters. In return, the EU will simplify administrative procedures for British farmers and fishermen exporting goods to the EU. Some opposition parties criticized the deal, expressing concern about its potential impact on fishermen. However, analysts said it was a necessary concession from the UK that reflects a shift in leadership attitudes after years of post-Brexit challenges.

“It's really significant in the Brexit context. This shows the UK moving away from the idea of setting entirely its own rules and accepting the EU as a close market with which the UK does about 50% of its trade. It’s the one in which the UK has to align its rules with,” said David Henig, a UK trade policy expert at the European Centre for International Political Economy.

Achieving agreements with the UK is considered a significant win for the EU. The UK's acceptance of many EU regulations puts the bloc in a dominant position in the new relationship.

“We're opening a new chapter in our unique relationship. This is the story of historical and natural partners standing side by side on the global stage, facing most of the same challenges, pursuing the same objectives like-minded, sharing the same values. And thus we are looking for solutions that are beneficial for both our people,” EC President Ursula von der Leyen said.

Handling security challenges together

Observers say the agreements don’t reverse Brexit, that the two sides have drawn clear red lines in their relationship. PM Starmer said the UK will not return to the EU single market or customs union, nor accept free movement between the UK and the EU, and will not loosen regulations in financial and other services. And the EU remains cautious about granting special privileges to the UK without reciprocal financial obligations.

Nonetheless, the agreements give the UK access to the EU single market not enjoyed by any other non-EU country or by EFTA members, namely Norway, Switzerland, Iceland, and Liechtenstein.

A significant point of the UK-EU defense agreement is that the UK can access the EU's 141-billion-USD defense fund, along with corresponding financial contributions. In the long term, the UK may also participate more deeply in the “European Re-armament” program, worth up to 800 billion euros, a strategic initiative announced by von der Leyen in early March. This is a strategic response to growing geopolitical instability in Europe due to the Russia-Ukraine conflict and shifting US foreign policy.

Olivia O’Sullivan, Director of the UK in the World Program at Chatham House, said the US’s reduced security commitments to Europe are pushing the UK and EU to tighten defense cooperation. “That is a significant change in the US's security posture. That requires a response from Europeans not necessarily just spending more on defense but spending together, planning together, thinking about the type of shared military capabilities that are needed to defend the continent.”

Recently the UK has strengthened bilateral security ties with key EU countries, for example signing a long-range missile development deal with Germany and partnering with France to lead a “coalition of the willing” to maintain peace in Ukraine if a long-term ceasefire is achieved.

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