UK-EU reset: All you need to know

Written by the Emily Stubbs, head of policy at Greater Birmingham Chambers of Commerce

On 19 May 2025, the UK Government held a summit in London with leaders of the European Union (EU), where they announced a new ‘Strategic Partnership’ between the UK and EU, including agreements on:

• Trade of agri-food products
• Energy security and net zero
• Trade of steel
• Law enforcement and judicial cooperation
• ‘Irregular’ migration, and youth and educational mobility
• Business mobility and recognition of qualifications
• Security and defence
• Fisheries
• Passport e-gates

A joint statement regarding shared global priorities for this strategic partnership was issued by UK and EU Leaders.

What does this mean for Greater Birmingham businesses?

The government has published a detailed explainer of what these mean. Below is a summary of the key agreements concerning Greater Birmingham Businesses:

Trade of Agri-Food products

The EU is the UK’s largest agri-food market, but since Brexit (between 2018-2024), EU exports have decreased by an estimated 21 per cent.

Over the same period, EU imports have decreased by an estimated 7 per cent.

With this in mind, the Government has agreed an agri-food deal (the UK-EU Sanitary and Phytosanitary (SPS) Agreement) with the EU to establish a UK-EU SPS Zone.

This includes the removal of Export Health Certificates, plant health certificates and Certificates of Inspection for organic products, as well as the removal of marketing standards certification requirements.

It is also anticipated that as a result of this deal, routine border checks on agri-food products will stop, certain, previously banned British food products will be able to resume trade to the EU, and moving goods between GB and NI will be easier.

Routine checks on certain food imports from the EU will also be removed.

Where in the UK’s interests, the Government indicates that it may negotiate a limited number of exceptions to these rules.

Energy security and net zero

The Government has also agreed to closer co-operation with the EU on energy, intended to strengthen energy security, support the UK economy and help the UK meet net zero ambitions.

This includes a commitment to put the Trade and Cooperation Agreement’s energy chapter on a permanent footing, explore UK participation in the EU’s electricity trading platforms (potentially streamlining electricity trading and reducing the cost of electricity across the UK and EU), and maximise cooperation on clean energy technologies, including hydrogen, carbon capture use and storage, and decarbonised gases.

Following Brexit, the UK left the EU emissions trading scheme and had to establish a separate market.

This separate market is smaller and less liquid, which the Government states can make prices less stable and feed through to investment.

Having a separate system also means that UK industry stands to be impacted by the EU Carbon Border Adjustment Mechanism on around £7bn of trade.

To avoid this, help to stabilise prices and streamline regulatory barriers, leaders announced plans to link the UK trading scheme with the EU Scheme.

Trade of steel

As part of the new strategic partnership, the EU Commission has confirmed that they will restore the UK’s country-specific steel quota to historic levels and that this will be reflected in a post-2026 regime.

This agreement will protect more tariff-free exports to the EU from being subject to steel tariffs.

Security and defence

UK and EU Leaders have also agreed a new Security and Defence Partnership, complementing existing bilateral partnerships with EU member states, and supporting the Government’s commitment to NATO.

The new partnership will involve increased regular engagement between UK and EU leaders. It is intended to boost cooperation on a broad range of areas, including supporting Ukraine, ensuring resilience of critical infrastructure, and enabling closer institutional cooperation.

The partnership also sets the framework for closer cooperation and joint investment in the UK and EU defence industrial base.

Specifically, the UK and the EU have set out an ambition to explore possibilities for mutually beneficial cooperation created by the EU’s €150bn Security Action for Europe (SAFE) instrument which, once adopted, could lead to a more resilient and competitive UK and EU industrial base.

Further, the UK and EU have agreed to establish a regular dialogue on development issues, to look to enhance cooperation on international disaster and humanitarian responses, and to explore increasing cooperation on health security, including to prevent and better mitigate against future pandemics and health crises.

Youth and educational mobility

The UK and EU have agreed to work towards a ‘youth experience scheme’ creating new opportunities for cultural exchange between the two territories, intended to give young people the opportunity to travel, experience other cultures, as well as work and study abroad.

It has been agreed that any such scheme would be time limited, on terms to be mutually agreed, and that the overall number of participants must be acceptable to both sides.

The UK has also agreed to work towards association to Erasmus+, on mutually agreed financial terms.

The Erasmus+ association would offer a broad range of opportunities for UK learners and staff across our education, training, youth and sport sectors, from school exchanges, work placements, language courses, and semesters abroad, to international youth work projects and training for grassroots sport staff.

Business mobility and recognition of qualifications

Business travel is critical for many Greater Birmingham firms operating in the EU, and with this in mind, UK leaders have agreed with the EU to set up dedicated dialogues on short term business mobility and the recognition of professional qualifications.

This is intended to create a forum to address mobility barriers faced by UK services providers in the EU.

Passport e-gates

Since the UK left the EU, UK nationals have not been able to use eGates in most Schengen countries.

The European Commission has confirmed that there will be no legal barriers to eGates use for UK nationals travelling to and from EU Member States, after the introduction of the EU’s Entry/Exit System.

This means that, where enabled, UK passport holders will be able to use eGates across Europe.

The UK government has said that they will now work with EU Member States to expand access, improving UK citizens’ travel experience and reducing queues at entry points across the EU.

What is the GBCC’s response to the UK-EU Reset?

The new agreements reached 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 seven 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.

Where can I access the latest news and support?

The Greater Birmingham Chamber of Commerce offers a range of events, support and networking opportunities for local businesses that trade internationally.

Whether you're just beginning, building on early successes, or seeking to expand into new markets, our free export support programme, Exporting Starts Here can provide dedicated 1:1 guidance and training to help you grow your business globally.

Meanwhile, our Greater Birmingham Global Chamber of Commerce is also on hand to support businesses looking to meet strategic contacts locally and further afield, network with internationally focused peer businesses, and access events and knowledge-sharing forums such as exclusive roundtables to explore market opportunities.

And the GBCC’s Business Growth Studio provides invaluable resources, actionable insights, and hands-on workshops (exclusively for members) to help businesses survive and thrive in competitive markets.

Whether it is navigating the immediate impact of tariffs, exploring alternative markets, or shaping the future of UK trade policy, the GBCC is here to ensure the voice of Greater Birmingham’s business community is heard. We encourage all members to stay engaged, share their experiences, and make use of the resources and networks available through the Chamber network.

For the latest news on global trade developments, make sure you’re subscribed to our newsletter, Greater Birmingham Business News.