Announced following six months of negotiations, a landmark agreement between the European Union and the United Kingdom marks a fresh chapter in EU-UK relations. This deal will bring several benefits for cross-border business and a framework for closer cooperation in key sectors. This is a major step towards stabilising and deepening the economic and strategic partnership between the UK and the EU.
Below, we break down the key areas of the agreement and what they mean for your business:
Food, plant and animal imports and exports
For food and agricultural businesses, particularly those importing from or exporting to the UK, this marks a major step toward smoother trade flows, lower costs, and revived product availability, however, continued alignment will require ongoing attention.
- Most routine border checks on animal and plant shipments to and from the EU will be eliminated.
- The new sanitary and phytosanitary (SPS) agreement means the UK can sell raw burgers and sausages back into the EU for the first time since Brexit.
Carbon and energy
This offers real advantages for EU businesses trading energy-intensive products or investing in carbon-sensitive sectors, helping ensure market stability and environmental consistency across borders.
- The UK and EU have agreed to link their carbon markets, preventing additional taxes on carbon-heavy products such as steel and cement from moving between the two markets.
- This arrangement is expected to save the UK around £800 million in taxes and protect British steel from EU tariffs, supported by a UK-specific deal valued at £25 million annually.
- The UK will also begin discussions on buying and selling directly into the EU’s shared electricity market, but the UK would have to follow EU rules to seal a deal.
Defence and security
This renewed cooperation creates fresh opportunities for defence, aerospace, and tech firms across the EU, opening cross-border partnerships and funding avenues that had been uncertain post-Brexit.
- The UK and the EU have established a formal defence and security partnership.
- Officials from both sides will hold biannual meetings to discuss defence and foreign policy matters.
- Both sides will coordinate on sanctions, share more information and develop a space-related security policy
- The UK will participate in the EU’s PESCO military mobility programme, designed to facilitate faster movement of troops and equipment across Europe.
- This agreement opens opportunities for UK defence manufacturers to access the EU’s Security Action for Europe (SAFE) fund, a £150 billion initiative supporting defence projects.
Fishing
This agreement brings long-term certainty for EU fishing operators and seafood supply chains that rely on UK waters, protecting valuable market access and reducing the risk of abrupt regulatory shifts.
- EU boats will maintain access to UK waters under the current arrangement until 2038.
- The post-Brexit agreement from 2020, which saw the UK regain 25% of EU fishing quotas, was set to expire in 2026.
- The UK will continue to agree yearly quotas with the EU and Norway, with licences still required for access.
- The UK is introducing a £360m “fishing and coastal growth fund” to invest in new technology and equipment.
Youth experience scheme
Such developments could significantly benefit companies that rely on international interns, graduate talent, or short-term placements, enhancing access to a more flexible and skilled young workforce.
- The UK and the EU have agreed to co-operate further on a “youth experience scheme”, with the government saying such a scheme “could see young people able to work and travel freely in Europe again”.
- It would be like existing agreements the UK holds with countries like Australia and New Zealand, where a set number of visas are available annually for people aged 18 to 35 to live and work for up to three years.
- The UK is also negotiating to rejoin the Erasmus+ programme, which allows students to study or do an internship abroad.
Passport e-gates
These changes are expected to reinvigorate UK travel to and between the EU, helping tourism, retail, and international events by removing friction from short-stay visits.
- British holidaymakers will be able to use e-gates at more European airports
- The EU Commission confirms no legal obstacles will remain following the introduction of a new digital border system expected this October.
- Each EU country will still decide whether to allow UK citizens to use their e-gates, with the UK government being committed to working with them to expand this access promptly.
- A new passport system will make it easier for UK pets to travel, ending the need for repeat vet certificates.
For the full details of the UK-EU agreement, you can read the official government publication here.