A constructive turn as the UK and EU begin a new chapter of cooperation and shared priorities

20 May 2025, 11:08

The newly announced UK-EU trade agreement marks a significant and much-needed turning point in post-Brexit relations.

The deal includes improved market access for British food and agricultural products, a 12-year extension for EU fishing access to UK waters and a new defence and security pact.

On the surface, it signals a pragmatic shift - one that acknowledges the reality that cooperation, not confrontation, is the only viable path forward for two deeply connected trading blocs.

For businesses, particularly SMEs, this agreement could remove some of the friction that has plagued cross-border commerce since Brexit.

A reduction in red tape and smoother customs processes will be welcome news to firms that have struggled with delays, increased compliance burdens and higher costs to trade with the EU.

These are the practical gains that, over time, could help rebuild confidence and reduce the post-Brexit trade challenges many exporters have felt since 2021.

The inclusion of defence and security cooperation also signals a wider realignment of priorities – a recognition that shared geopolitical threats require more integrated responses.

In that sense, this isn’t just about trade; it’s about repairing and future-proofing a relationship that must be multifaceted to be sustainable.

But any agreement comes with trade-offs. The 12-year EU fishing access arrangement will likely spark debate on both sides of the Channel.

Domestically, some may see this as a concession that undermines sovereignty - while in Europe, the duration could be viewed as a diplomatic win. In reality, this was a likely price to pay for progress elsewhere.

There are also unresolved issues, from youth mobility to broader regulatory alignment. While the agreement marks progress, many operational and trade-related frictions remain, particularly for sectors still navigating complex post-Brexit rules.

These will continue to challenge businesses unless addressed in future negotiations.

What businesses must now consider is how to align their procurement, logistics and inventory strategies with the evolving rules of trade.

This is an opportunity to reset not just politically, but operationally. For many, that will mean reassessing supply chain resilience, cost structures and EU market strategies.

Ultimately, this deal is not a full resolution, but it is an important recalibration. It shows that there is a willingness on both sides to engage more constructively.

Whether this marks the beginning of a meaningful reset will depend not just on policy, but on how the UK and EU choose to act on this renewed momentum.

Simon Geale is the Executive Vice President at Proxima

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