The United Kingdom and the European Union have reached a new agreement aimed at easing trade friction, improving data sharing, and enhancing cooperation on defence and migration. The deal, announced on 19 May, includes a series of sector-specific arrangements but maintains the UK’s position outside the EU’s single market, customs union, and freedom of movement framework.
A key element of the agreement is a new sanitary and phytosanitary (SPS) arrangement designed to reduce red tape for food and drink exports and imports. The deal removes some routine checks on animal and plant products, with the government stating this could help lower food prices and improve supply chain efficiency. The SPS agreement will apply indefinitely, offering long-term regulatory certainty to businesses.
In a related move, the UK and EU will link their respective Emissions Trading Systems (ETS), a step that will prevent UK businesses from incurring the EU’s incoming carbon border tax. According to government estimates, avoiding the tax will save British firms approximately £800 million. The combined impact of the SPS and ETS measures is projected to contribute nearly £9 billion to the UK economy by 2040.
British steel exporters will also benefit from a bespoke exemption from new EU tariffs and regulatory requirements, saving the sector an estimated £25 million annually.
The agreement introduces expanded law enforcement cooperation, including plans to negotiate UK access to the EU’s facial image databases. This builds on existing arrangements covering DNA, fingerprint, and vehicle registration data.
Travel arrangements for British citizens will be affected as well. The EU has agreed to allow wider access to automated border control eGates for UK passport holders. In addition, a revised pet travel system will reintroduce ‘pet passports’, eliminating the need for animal health certificates for each journey.
A new Security and Defence Partnership will allow UK defence firms to participate in the EU’s proposed €150 billion Security Action for Europe (SAFE) fund. The agreement is intended to facilitate joint defence initiatives amid ongoing geopolitical instability.
The deal also outlines the UK and EU’s intention to cooperate on a youth mobility scheme. While details are yet to be finalised, the proposed scheme would allow young people to work and travel more freely between the two regions under capped and time-limited conditions, similar to existing UK agreements with countries such as Australia and New Zealand.
On migration, the agreement includes a renewed commitment to address illegal crossings and strengthen returns processes, though specific mechanisms have not been detailed.
A new 12-year fisheries agreement has also been secured. The UK retains its current fishing access, rights, and territorial waters, with no increase in quotas for EU vessels. The government has pledged £360 million in support for the domestic fishing industry, to be allocated towards modernising fleets, workforce training, and boosting seafood exports.
Trade bodies call for clarity on Windsor Framework and haulier rules
Trade and logistics industry bodies have broadly welcomed the SPS arrangement, while also calling for further progress on unresolved regulatory and customs issues.
The Road Haulage Association (RHA) stated that the new SPS area “promises to ease food import and export processes between the UK and EU by reducing costs and delays.” RHA Managing Director Richard Smith said the changes, if implemented as described, “will potentially reduce friction and enable smoother trade between GB and NI and within the UK internal market.” However, the RHA also urged ministers to address “significant ongoing impact on the Northern Ireland supply chain” and raised concerns about the continuing lack of clarity over aspects of the Windsor Framework, such as the definition of ‘at risk’ goods.
The RHA also called for renewed talks on the so-called 90/180-day rule, which currently limits the number of days UK hauliers can operate within the EU. Smith noted that this restriction is particularly problematic for international hauliers, coach operators and live event logistics firms.
Logistics UK also welcomed the potential of the deal to reduce bureaucracy, costs and border delays for agrifood products moving between Great Britain, Northern Ireland and the EU. Head of Trade and Devolved Policy Nichola Mallon said the deal could “drive growth throughout the UK,” but stressed that “technical discussions and implementation, shaped by the input of businesses,” need to proceed quickly.
Mallon added that the current SPS-related requirements are especially difficult for small and medium-sized operators, as “they must pay fees on each of the smaller shipments that they combine together.” She also pointed to continuing challenges related to customs and the 90-day Schengen Area rule, and called for a more ambitious approach in the upcoming review of the Trade and Cooperation Agreement.
The government confirmed that talks will continue with the EU to implement the measures outlined and resolve remaining technical details.
