UK-EU Trade Deal announced

The UK and the EU have agreed the terms of a new trade agreement, which has been described as a major reset of the UK-EU relationship.

There is much to be positive about in this deal, which will reduce costs for businesses and ease regulatory burdens on businesses trading across borders.

Some key points in the agreement:
• Fishing: The UK will maintain the current fishing access arrangement with the EU until 2038, while continuing to set annual quotas and invest £360m in coastal communities.
• Farming: In exchange for extending fishing rules, the UK secured reduced border checks on food exports and can now export previously restricted products like raw sausages and burgers to the EU.
• Security: A formal UK-EU defence pact enables deeper cooperation and gives UK arms firms access to the EU’s £150bn defence fund.
• Youth experience scheme: The UK and EU are negotiating a scheme that could allow young people to live and work across both regions, similar to existing deals with Australia and New Zealand.
• Carbon tax: The UK and EU will link carbon markets to avoid cross-border carbon taxes, saving £800m and protecting UK steel exports through a deal worth £25m annually.

Commenting on the UK-EU deal, Dr Liz Cameron CBE, Chief Executive, Scottish Chambers of Commerce, said: “The new UK-EU agreement is a welcome and pragmatic step towards rebuilding a strong trading relationship with our closest economic partner.

“The EU remains Scotland’s top export destination, and this deal will help reduce costs, cut red tape, and make it easier for Scottish businesses to compete and grow across European markets.

“We support all efforts which remove unnecessary barriers to doing business internationally. Simplifying trade processes and aligning standards means more opportunities for investment, job creation, and long-term economic resilience at home.

“This deal comes at an opportune time, ahead of our SCC-led trade mission to Spain next month, in partnership with the UK Government and the Scotland Office. Spain’s booming economy is the fastest-growing in the European Union and Scottish businesses are eager to seize new opportunities.

“We urge the UK and EU to keep up this momentum especially on people and migration. A youth mobility scheme would be a game-changer for attracting high-skilled talent and supporting our global ambitions.”