UK-EU agreement a welcome first step to improving trade relations – Chamber

A ‘reset’ deal between the UK and the European Union is a welcome first step to improving trade terms for businesses, business leaders said today.

Sir Keir Starmer said yesterday that Britain is “back on the world stage” after reaching an agreement with the EU.

The new deal – which comes five years after Brexit kicked in – includes fresh terms on eGates for British passport holders travelling through Europe, red tape on food and drink sales, fishing rights, defence, carbon tax, steel and youth mobility.

A new sanitary and phytosanitary (SPS) deal has been agreed to reduce red tape currently needed to import and export food and drink between the UK and the EU.

There is no time limit to this part of the deal, which the government says will reduce the burden on businesses and reduce lorry queues at the border.

Some British foods that have been prevented from being sold in the EU since Brexit will be allowed back in again, including burgers and sausages.

The UK and the EU have agreed to more negotiations on a youth mobility scheme to allow people aged 18-30 in the UK and the EU to move freely between countries for a limited period.

The scheme would include visas for young people working, studying, volunteering, travelling and working as au pairs.

British steel exports will be protected from new EU rules and tariffs to save UK steel £25m a year.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “The new deals announced so far are good first steps to improving relationships with our closest trading partners, but businesses will be anxiously looking for more measures that meaningfully reduce trading barriers.

“In particular, the British Chambers of Commerce have set out key asks, covering workforce mobility – particularly youth mobility, raw materials and components, fiscal representative requirements, recognition of professional qualifications and linked emissions trading schemes.

“In the lead up to Brexit, and in the years that followed, we delivered an extensive programme of support to help businesses navigate the intricacies of the UK’s leaving the European Union.

"Due to the manufacturing heritage of the West Midlands and our volume of trade with the EU, the region was nevertheless amongst those hit hardest, experiencing a decline in exports and a slower recovery compared to other UK regions.  

"As highlighted by the Business Commission West Midlands, the UK's departure from the European Union has led to additional cost pressures for many firms - particularly those citing skills shortages.

“Many also referenced ongoing supply chain disruption and practical difficulties in moving goods to Europe.

These challenges are not just frustrating - they are actively undermining our competitiveness and slowing growth.

"This is not about re-opening the Brexit debate, it’s about maximising mutually beneficial opportunities on both sides of the Channel."

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