4 Jun
A new agreement between the UK and the EU, unveiled on 19 May, seeks to smooth post-Brexit trade by reducing barriers and enhancing cooperation. A central pillar is the long-term sanitary and phytosanitary (SPS) arrangement, which cuts back on routine checks for agricultural and food products. This measure is expected to lower logistics costs, stabilize prices, and create a more efficient flow of goods across borders—benefitting exporters and importers on both sides.
The deal also connects the UK and EU Emissions Trading Systems (ETS), protecting British businesses from the incoming EU carbon border tax and saving an estimated £800 million. Meanwhile, EU firms trading with the UK stand to benefit from predictable carbon pricing and aligned standards. Combined with SPS reforms, the UK projects a total economic gain of £9 billion by 2040. British steel exporters avoid new EU tariffs, preserving competitiveness, while EU partners maintain secure access to UK materials.
Beyond trade, both sides gain from improved digital border procedures, travel facilitation for citizens, a renewed pet passport system, and strengthened cooperation on migration and security. The EU also benefits from UK participation in joint defence projects through access to the €150 billion SAFE fund, enhancing collective resilience amid global tensions. Overall, the agreement marks a balanced step forward for economic and regulatory stability.
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source: ecgassociation.eu
