The United Kingdom(UK) has announced a landmark agrifood deal with the European Union, paving the way for closer collaboration between the two entities. This agreement comes nearly nine years after the UK voted to leave the EU. According to Prime Minister Keir Starmer, the deal would reduce red tape for agricultural producers, making food cheaper, and add nearly 9 billion pounds ($12.1 billion) to the economy by 2040. “The deal would also improve energy security,” Starmer said, describing it as a “win-win”.
Terms of the Deal
The agreement includes a new security and defense pact, fewer restrictions on British food exporters and visitors, and a new fishing agreement. Both sides will work more closely on information sharing, maritime issues, and cybersecurity. The EU has committed to exploring ways for the UK to access EU procurement defense funds, allowing British weapons manufacturers to participate in a 150-billion-euro ($169 billion) program to rearm Europe. The UK and EU will also work on a joint agrifood agreement to remove Brexit-era trade barriers.
In exchange, the UK will follow EU food standards and accept the European Court of Justice’s oversight in this area. The deal also allows the UK to return to the Erasmus student exchange program and grants young people access to the EU through work and travel. Britons will be allowed to use border e-gates at most EU airports, reducing queues at passport controls. However, the UK will grant EU fishers access to British waters for an additional 12 years, a concession that has drawn criticism from opposition politicians.
Criticism and Controversy
Critics argue that the deal amounts to backtracking on Brexit, with the Conservative Party saying it would make the UK a “rule-taker” from Brussels. Nigel Farage, head of the hard-right, pro-Brexit Reform UK party, called the deal an “abject surrender”. Conservative leader Kemi Badenoch wrote on X, “Offering 12 years access to British waters is three times longer than the govt wanted. We’re becoming a rule-taker from Brussels once again.” The Scottish Fishermen’s Federation described the fisheries deal as a “horror show”.
Economic Impact
According to the Office for Budget Responsibility, Brexit will shrink trade flows by 15% and lower GDP by 4% over the long term, costing the economy 100 billion pounds ($134 billion) per year. Gaurav Ganguly, head of EMEA Economic Research at Moody’s Analytics, said, “The argument was that doing business at home and abroad would be simplified. And while the UK has signed several trade deals since 2020, Brexit has not unleashed the potential that was talked about [by its advocates].” The new agreement is expected to boost Britain’s GDP by between 0.3% and 0.7%, but Ganguly expects modest GDP growth of around 1-2% between now and the next election cycle.
Public Perception
Public support for Brexit has fallen since the 2016 referendum, with 55% of Britons now saying it was wrong for the UK to vote to leave the EU. Roughly 60% of people believe Brexit has gone badly, including one-third of leave voters. A majority also believes that leaving the EU has damaged Britain’s economy. Despite this, Starmer remains committed to his election promise of not re-joining the European single market or the customs union.