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The UK government has secured a new agreement with the European Union, aiming to support British businesses, lower costs for consumers and add nearly £9 billion to the UK economy by 2040.

Over the last six months, extensive negotiations have led to the third major deal struck by the UK government in as many weeks, following the US and India, which the Prime Minister says will be “good for jobs, good for bills and good for our borders”.

Prime Minister Keir Starmer met European Commission President Ursula von der Leyen and other senior officials in London for talks, which aim to grow the British economy and reset relations with the EU following Brexit.

Von der Leyen called the talks a “historic moment” that benefits both sides. More broadly, she said it sends a message at a time of global upheaval that the UK and EU are “natural partners standing side-by-side on the global stage".

Cutting red tape for food exports

As part of the deal, a new Sanitary and Phytosanitary (SPS) agreement promises to 'reduce the red tape' currently impacting F&B businesses, making it easier for food and drink to be imported and exported and cutting down long lorry queues at the border. The agreement will have no time limit, providing certainty to businesses.

Speaking to BBC News, minister for European Union relations and lead government negotiator, Nick Thomas-Symonds, said: “We know we’ve had lorries waiting for 16 hours, fresh food in the back not able to be exported because frankly it’s just going off, red tape, all the certifications that are required, we absolutely want to reduce that.”

Some routine checks on animal and plant products will be removed completely, allowing goods to flow more freely, including between Great Britain and Northern Ireland. The government said this could result in lower food prices for consumers and increased choice on supermarket shelves.

The EU remains the UK’s largest trading partner; however, since Brexit, there has been a 21% drop in exports and 7% in imports. The SPS agreement will enable the UK to once again sell products, such as burgers and sausages, back into the EU.

Karen Betts, chief executive of the Food and Drink Federation (FDF), said: “Trade with the EU is incredibly important to UK food and drink manufacturers. Europe is our single biggest customer, and most of the food and drink we import – from ingredients to finished products – comes from Europe too. However, trade in both directions has become complex and challenging. UK food and drink exports to Europe have fallen by a third since 2019 and businesses continue to face challenges and delays with imports."

Betts added that while a high-quality agreement will have clear benefits for consumers and businesses, the government should continue to work closely with industry on the detail and ensure the UK can influence EU decision making where it impacts British businesses and competitiveness, particularly where the UK aligns with EU rules.

Fishing remains contentious

The UK and EU have also reached a new 12-year agreement to 'protect Britain’s fishing access, fishing rights and fishing areas,' with no increase in the amount of fish EU vessels can catch in British waters. The government said this aims to provide stability and certainty in the sector.

It has also revealed plans to invest £360 million into the country's fishing industry, supporting a shift toward new technology and equipment to modernise the fleet, training to help upskill the workforce, and funding to support tourism and boost seafood exports. The British fleet will also benefit from the SPS agreement, which slashes costs and red tape to help exports.

While the deal includes no increase in the EU's quota, the Scottish Fishermen’s Federation (SFF) has expressed disappointment in response to the agreement. Chief executive Elspeth Macdonald described it as a "betrayal" of the sector, commenting: "This deal is a horror show for Scottish fishermen, far worse than Boris Johnson’s botched Brexit agreement".

"It is clear that Sir Keir Starmer made the whole deal on the backs of our fishermen and coastal communities, granting EU vessels 12 years of continuous access to UK waters at the last minute in order secure other objectives."

Earlier this year, the SFF addressed the Prime Minister in a letter urging him to "avoid gambling with the future of Scottish fishing businesses by using the industry as a bargaining chip in negotiations to improve relations with the EU".

Macdonald said: "This is why the EU catches around seven times more fish by value in UK waters than the UK catches in EU waters every year. Its fishing fleet is highly dependent on access to UK waters; in contrast, over 85% of UK catches are taken from our own waters. Reciprocal access is heavily loaded in the EU’s favour."

She stated that the Prime Minister should be insisting on payment for any long-term access for the EU fleet to UK waters, adding that the UK and its devolved administrations should have complete discretion over the management of fisheries within the UK's Exclusive Economic Zone.

"Any attempt by either the UK or EU to portray the new deal as a continuation of existing arrangements would be a lie, because in fact the Trade and Co-operation Agreement paved the way for annual access negotiations from 2026," Macdonald said in her recent statement shared on 19 May.

Daniel Voces, managing director of EU fishing industry association Europêche, described the deal as a "positive step for both sides," commenting: "This is a forward-looking agreement that ensures long-term sustainability and mutual benefit. The extension of fishing access until 2038 provides vital stability for our fleet and coastal communities, while the reduction in trade barriers supports both EU market access and food affordability in the UK. This is a clear example of what pragmatic and constructive cooperation can achieve."

Europêche said it hopes the new agreement will open a 'new chapter in EU–UK fisheries relations,' enabling both parties to work towards renewed access to sandeel fisheries and fostering constructive management of mutual access to territorial waters.