Trade, Cooperation, Agreement: Revamping EU-UK Partnership

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In recent times, trade deals have been garnering significant momentum and traction globally. On 9 May 2025, India and the United Kingdom (UK) signed a ‘historic’ Free Trade Agreement (FTA) charting a new era of partnership. Barely two weeks later, on 19 May 2025 the UK and the European Union (EU) secured a new deal— Trade and Cooperation Agreement (TCA) — resetting the relationship after Britain’s exit from the Union in 2020 (Brexit). This agreement covers various areas, including trade, migration, and cooperation in sectors such as fisheries, energy, and transport. Although it offers significantly fewer privileges than those enjoyed by the UK as an EU member state, the deal includes provisions that are beneficial for the UK, thereby enhancing its economic resilience. It is evident that the UK and EU have been working closely on European armaments, the Ukraine war, and the proposed tariffs imposed by the United States of America (USA) since Keir Starmer assumed office as the UK’s Prime Minister (PM). There is an alignment of objectives, and Euroscepticism is on the decline, making the partnership stable and worth pursuing for both partners in an uncertain international environment. As like-minded partners sharing common values influencing their domestic and foreign policies, the EU and UK appear quite ambitious in their joint agendas. Following this deal, the normative power of the EU appears to have increased. Yet, it can also be said that since the Ukraine war, Brussels has intensified its efforts to develop its defence capabilities. In this sense, the EU-UK Security and Defence Partnership is one of the key outcomes of the EU-UK Summit.

As like-minded partners sharing common values influencing their domestic and foreign policies, the EU and UK appear quite ambitious in their joint agendas.

What is the EU-UK Deal?

The first EU-UK Summit held discussions around security and defence, prioritising people, strengthening economies while protecting the planet and its resources, judicial cooperation, irregular migration, and fisheries. It led to the signing of an agreement that has been hailed as a reset in relations. The UK stands to benefit more from the deal than the EU in purely economic terms. Nonetheless, the EU has gained goodwill and increased stability in relations with an important regional partner. The economic security of both countries has also strengthened since the agreement, a critical factor in the face of the tariff wars and the ongoing global conflicts. Within the UK, the main beneficiary of the new deal is the food sector. Amendment of laws concerning food exports and fisheries is especially crucial, considering these sectors were the worst hit by Brexit. Simplification of the control of British food would also allow it to be easily exported to the EU. The UK food sector suffered economic losses due to the red tape introduced by Brexit.

Fisheries have been a contentious sector of cooperation while the UK was part of the EU. According to the new deal, the existing quotas established in 2021 will remain in effect for the next decade. Though this provides stability to the sector, critics observe that UK companies will not be in a position to compete with the EU products. Other impacted sectors include education, where a scheme similar to Erasmus is being negotiated.

Although this deal is generally positive for the UK, some apprehensions remain. The concept of ‘dynamic alignment’ has scared many Eurosceptics in the UK; however, this fear now seems to be fading.. On the other hand, supporters of the deal label this critique a ‘Brexit derangement syndrome’ where anything concerning a more or less equal deal between the EU and the UK is undesirable. Nevertheless, it still strengthens the relationship between the two, considering the challenges faced by Europe and the international system alike.

EU-UK Deal and Brussels

Often described as a normative power, the EU uses normative justification rather than material incentives or physical force. In contrast to military power, its strength lies in the legitimacy of its principles, coherence, and consistency. The significance of the EU in global politics is not merely the result of having military resources. However, it is based on the importance of ideas, norms, and values underlying the project of European integration.

It seems that both the UK and the EU needed this summit to present it as a great success of democracies which support the liberal order in the time of uncertainty during the Trump presidency and Russia’s war against Ukraine.

According to the EU-UK Summit 2025 joint statement, “Reaffirming our [UK and EU] shared values and our commitment to deeper cooperation against the backdrop of an evolving and complex global geopolitical landscape, we agree (to) a new strategic partnership.” A new strategic partnership is presented as a foundation for the future relations. It seems that both the UK and the EU needed this summit to present it as a great success of democracies which support the liberal order in the time of uncertainty during the Trump presidency and Russia’s war against Ukraine.

Both parties involved highlight the need for a shared responsibility towards Europe and strengthening their partnership in security and defence. Furthermore, Britain supported the EU’s stance over the Russia-Ukraine conflict and also expressed support for Moldova’s territorial integrity. The UK and EU also share a common stance on the situation in the Middle East. In this sense, the interests of the EU and UK extend beyond conventional strategic domains. It is crucial from the EU’s perspective, which is interested in developing its potential to defend against hybrid threats and the resilience of critical infrastructure. The EU-UK Security and Defence Partnership may be the next sign of the EU’s willingness to focus more on developing its own defence potential and decrease its military reliance on the US. Under the agreement, the UK gained access to a new EU rearmament financing instrument worth €150 billion, called SAFE, which aims to enhance defence production throughout the bloc, establishing a 65 percent - 35 percent European preference. During the summit, the leaders also underscored that for the UK and EU-member states, which are also the North Atlantic Treaty Organisation (NATO) allies, NATO remains the basis of their collective defence.

TCA emphasises the need to establish common platforms for cooperation, fostering goodwill and trust in the face of growing geopolitical rivalries and unrest.

The Road Ahead

Trade agreements have emerged as a game-changer, gaining immense significance in recent times. Ever since the UK detached itself from the EU, it has been attempting to compensate for the loss of access to the EU marketplace. Examples include UK agreements with Japan, Singapore, Vietnam, and India, as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In this sense, London is yet again keen on collaborating with Brussels by re-establishing cooperative frameworks. Additional discussions on mobility, pharmaceuticals, and chemicals are required for further tuning. The world, at large, is inclined towards diversifying trade relations and supply chain finance via initiating multipronged alliances. Currently, the TCA emphasises the need to establish common platforms for cooperation, fostering goodwill and trust in the face of growing geopolitical rivalries and unrest. Signing the TCA also exhibits the EU’s inclination to enhance its economic and political cooperation with different state and non-state actors. For example, the EU and MERCOSUR (Argentina, Brazil, Paraguay, and Uruguay) announced an agreement on free trade in 2024, which is yet to be ratified by all member countries. The upcoming EU-India FTA also signals the intent of countries to build strategic pathways for a common global good.

Swati Prabhu is a Fellow, Centre for New Economic Diplomacy, Observer Research Foundation.

Aleksandra Jaskólska, PhD, University of Warsaw, Poland. She works on India’s foreign policy and international relations in the Indo-Pacific.

Barbara Kratiuk is an Assistant Professor at Vistula University in Poland, researching Indo-Pacific and Southeast Asia.

• International Trade and Investment
• European Union
• eu india fta
• eu uk deal
• eu uk summit
• eu uk summit 2025
• uk eu bilateral ties
• uk eu relations

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