London, May 20 (IANS) Britain and the European Union (EU) reached a wide-ranging agreement, which is expected to generate nearly 9 billion pounds (about $12.02 billion) for the British economy by 2040, Downing Street announced.
The deal was unveiled ahead of the first-ever UK-EU summit held in London, a meeting hailed by both sides as a “historic moment.” European Commission President Ursula von der Leyen called the agreement a “new chapter” in the relationship, as the two sides seek to reset ties after years of post-Brexit friction.
Hosted by British Prime Minister Keir Starmer, the summit brought together von der Leyen and European Council President Antonio Costa. All three praised the deal as a major step forward during a joint press conference, Xinhua news agency reported.
One major highlight is a youth mobility scheme, described by Downing Street as “capped and time-limited,” and modeled on similar agreements with countries like Australia and New Zealand. The UK and EU will also work toward restoring British participation in the Erasmus+ academic exchange program, from which the UK withdrew during the current 2021-2027 cycle.
Von der Leyen stressed that the mobility initiative will help rebuild long-term academic and cultural connections between European and British youth.
The agreement also includes a sanitary and phytosanitary (SPS) deal aimed at easing trade in food and agricultural goods. It will eliminate many routine checks on animal and plant products, cutting costs, reducing red tape, and reopening EU markets to British exports such as burgers and shellfish. It will also streamline goods movement between Britain and Northern Ireland under the Windsor Framework.
“This deal slashes red tape for exporters and will bring down food prices in British supermarkets,” Starmer said. “It directly impacts working people across the country.”
In the fisheries sector, Britain and the EU agreed to a 12-year framework that preserves British access to EU waters and maintains current quotas for EU vessels. The British government will invest 360 million pounds to modernise its fleet and upgrade technology.
“Under the old arrangement, we moved to year-by-year negotiations, which brought instability,” Starmer said. “This new deal offers predictability. Over 70 per cent of our seafood is sold to the EU, so reducing red tape makes a material difference.”
The agreement also lays the groundwork for defence and security cooperation, including a framework for UK participation in the EU’s SAFE defence program, which supports joint military procurement. Further negotiations will address financial contributions and supply chain arrangements.
British holidaymakers also stand to benefit. The deal will expand access to Europol data and enhance cooperation on biometric and vehicle information. British travelers will once again be able to use eGates at EU border controls, streamlining passport checks.
Despite broad support, the agreement has also faced criticism. Opposition Conservative Party leader Kemi Badenoch pledged to reverse it if her party returns to power, while Reform UK’s Nigel Farage called the move a “surrender” to Brussels.
Fisheries groups also voiced discontent. The National Federation of Fishermen’s Organisations said the deal “gives away the best card we still had,” benefiting large exporters and supermarkets more than independent fishers.
Still, analysts viewed the agreement as a pragmatic step forward.
“Fishing is a tiny part of the British economy, but critics will latch onto it as symbolic,” said Iain Begg, a European politics expert at the London School of Economics and Political Science. “However, reducing barriers to UK exports carries much greater economic weight — especially for defence contractors who could benefit from EU military procurement.”
On the mobility deal, Begg noted that relaxed passport controls will be welcomed by many Brits, especially as the holiday season approaches.
While some critics view the deal as a British retreat, others argue it signals a more mature phase in UK-EU relations.
“If you frame this as winners and losers, you miss the bigger picture,” said Steve Nolan, senior economics lecturer at Liverpool John Moores University, who sees the move as a mutual recognition that “we are close neighbors and strategic partners.” In a fragmented world, this is a sign that “grown-up negotiation is back on the table,” he added.
No timeline has been set for the agreement’s full implementation, but Starmer said remaining negotiations would continue “with the same pace and intensity.” (1 British pound = $1.34)
–IANS
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