Recent months have seen significant developments in the UK’s trading relationship with the European Union. On 19 May 2025, the UK government announced a new agreement with the EU, designed to ‘reduce friction, support British businesses, and foster economic growth’. 

Let’s have a look at the key changes, their potential impact, and practical steps business owners can take to prepare for the new landscape.

Background and context…

Since the UK left the EU in 2020, UK businesses have faced increased costs, paperwork, and delays at EU borders. The EU remains the UK’s largest trading partner, but exports have declined by 21% and imports by 7% between 2018 and 2024, with many businesses scaling back or stopping trade altogether due to added complexity. 

The Government’s new deal aims to address these challenges and provide greater certainty for businesses.

Key changes in the new agreement

1. Simplified food and drink trade

The deal introduces a new Sanitary and Phytosanitary (SPS) agreement, which will remove many routine border checks and paperwork for food, plants, and animal products. 

This is expected to cut costs, speed up supply chains, and reduce delays, which will be particularly beneficial for businesses involved in agri-food trade. Notably, certain products previously banned from export to the EU, such as fresh burgers and sausages, will once again be eligible for sale in EU markets.

2. Energy and emissions cooperation

The UK and EU have agreed to link their Emissions Trading Systems (ETS), helping UK businesses avoid new EU carbon taxes and providing a more stable market for carbon allowances. This linkage will also support investment in clean energy technologies and could reduce costs for UK industry.

3. Steel industry support

A special arrangement has been made for the UK steel sector, which will avoid new EU charges. The government estimates this will save UK steel exporters around £25 million annually. 

4. Extended fishing rights and coastal support

The deal extends reciprocal fishing rights for EU vessels in UK waters until 2038, aimed at providing stability for the sector. Additionally, a £360 million fund has been announced to support coastal communities, with investment in new equipment and training.

5. Smoother travel and pet movement

UK holidaymakers will benefit from more fast-track eGates at EU airports. Pet travel will also be simplified, with multiuse pet passports replacing the need for animal health certificates for each trip.

What this means for your business…

If your business trades with the EU, whether in food, manufacturing, or logistics, this deal could make cross-border trade easier and less costly. Reduced checks and paperwork should help cut delays and lower expenses, while new opportunities may appear for certain products.

However, while the headline agreements are in place, some details are still being negotiated. For example, full implementation of the new SPS rules is expected to take until the end of 2025, with an implementation period to follow.

Practical steps…

• Review Your Export and Import Procedures: Prepare for reduced paperwork and fewer checks by reviewing your current processes and ensuring your team is aware of upcoming changes.
• Stay Informed: Monitor official updates from the government and industry bodies as the new rules are rolled out.
• Consider New Opportunities: If you previously found it difficult to export certain products to the EU, now may be the time to explore these markets again.
• Invest in Training: Take advantage of funding and support for coastal and rural businesses, particularly if you operate in these areas.

Industry reaction

Industry leaders have welcomed the deal, emphasising its potential to enhance competitiveness and drive growth. The British Retail Consortium noted that the agreement will ‘reduce friction across borders and increase trade,’ while Government officials have highlighted the benefits for jobs, bills, and business certainty.

Looking ahead…

While this deal does not reverse all the changes brought by Brexit or rejoin the UK to the EU’s single market, it offers significant relief for businesses struggling with post-Brexit rules. As always, staying agile and informed will help your business

If you’d like to do so you can click to see the official announcement.