BCC: UK-EU Summit 2025: The Deal - British Bulgarian Chamber of Commerce

Information and key issues from the UK-EU Summit

UK-EU summit 2025 – Joint Statement

First in series of annual UK-EU summits across the full spectrum of UK-EU relationships at leaders’ level – the first since Brexit.
Joint Statement from summit announces new Strategic Partnership between the UK and EU – an ambitious, dynamic relationship.
Creates a new forum to evaluate the broader bilateral relationship and how the Trade and Cooperation Agreement (TCA) and other UK-EU agreements are operating.
Other high-level contact to take place regularly on foreign affairs and security, the economy and trade, justice and home affairs.

UK-EU summit 2025 – The Deal

Two key elements:

Security and Defence Partnership – facilitates closer co-operation and, through secondary agreements to be negotiated, new common procurement opportunities for defence companies.
Common Understandings document – framework paving the way to a series of agreements on reducing trade barriers, co-operation on food safety, energy co-operation, youth experience, climate, borders and migration, wider co-operation and exploration of further steps.

Common Understandings – Summary

Both parties to proceed swiftly on the undertakings made within the document.
Acknowledges the accompanying political agreement to extend current fisheries access of EU boats to UK waters until mid-2038.
TCA to be amended to reflect this change in duration.
Breach of the fisheries terms would be subject to dispute resolution processes within the TCA, which could mean tariffs ultimately levied for breaches of key provisions of the Agreement.
Places Title VIII of the TCA (energy market access and co-operation) on a permanent basis. This was due to expire in mid-2026.
Agreement in principle to move swiftly to negotiate deals in the following areas:
Common sanitary and phytosanitary (SPS) area – removing food and plant product paperwork and checks on vast majority of products moving between GB and EU on a non-time limited basis.
Emissions trading scheme linkage – deal to be reached to ensure carbon border adjustment mechanism obligations, on each side, will fall away for goods in scope moving between both markets.
Youth experience scheme – providing young people with time-limited visas to access a reciprocal, capped scheme offering the opportunity to work, live and study in each other’s territory.
Erasmus+ associate membership – UK to negotiate to rejoin this scheme.
Moving swiftly to improve co-operation in the following key areas:
Competition policy co-operation (agreement due to be signed on co-operation)
Europol co-operation
EU Drugs Agency Co-operation

Common SPS Area:

Negotiate an SPS agreement to apply to UK in respect of Great Britain (GB)
Northern Ireland (NI) will continue under Windsor Framework arrangements for trade in food and plant products.
Swiss-style agreement between UK and EU covering sanitary rules, phytosanitary rules, food safety, pesticides, organics, consumer protection rules applicable to production, distribution and consumption of foods and plant products.
Means removal of requirements for export health certificates, veterinary signatures, border control posts, associated checks, common user and port charges, delays in agri-food and plant product exports in both directions for vast majority of food and plant products.
Same benefits will apply in respect of GB to NI food and plant product movements on full implementation of the UK-EU SPS Agreement.
Will also permit exports of chilled sausages, shellfish and bivalve molluscs from GB to EU.
Dynamic alignment: GB will align on a timely basis with EU food safety legislation, within the common area, through immediate application of relevant new and amended EU rules.
Exceptions: SPS agreement intended to create short list of carve-outs, perhaps encompassing gene editing. This is as long as these do not give rise to lower standards compared with EU rules, nor negatively affect EU goods or animals placed on the market in GB. Any such agreements must also recognise that only compliant products may enter the EU.
Potential issues: what impact would any exception have on the UK internal market given NI will not have a carve-out, and complications around labelling of products.
No direct effect of EU rules in GB: UK Parliament will transpose rules which apply in GB.
Enforcement: arbitration panel to resolve any disputes between both sides, with recourse to European Court of Justice only on legal issues. Such rulings would be binding upon the tribunal. UK to be involved in relevant EU agencies, systems and databases.
Consultation: UK to be involved in consultations at an early stage on new policy and legislative proposals in this area from the European Commission.
Costs: Appropriate financial contribution from UK to costs of policy work done by the European Commission in this area.
BCC position: Clear win for exporters and importers alike. Four years of research, policy and advocacy work from the BCC on this issue. Aston University research indicates UK food and drink exports could increase by more than 20% under such an Agreement.

Emissions Trading Scheme (ETS) Linkage

Commitment to work towards linking the UK and EU ETS as soon as possible through negotiated agreement (likely over coming months).
Still to be determined whether EU CBAM legislation will apply to NI under Windsor Framework or not.
Agreement to cover all areas; to avoid risk of carbon leakage or competitive distortions, including electricity generation sectors, industry, industrial heat generation (excluding in individual heating of houses), domestic and international maritime transport, domestic and international aviation.
Process to be developed to allow for further expansion of sectors covered by linkage agreement.
Dynamic alignment: UK will dynamically align with all EU rules relating to the functioning of the ETS link. Means UK CBAM legislation and scheme will need to align with the EU’s. UK cap to be at least as ambitious as that of the EU. UK reduction pathway to be at least as ambitious as that of the EU – could go higher, but not below EU pathway.

ETS Linkage

Enforcement: arbitration panel to resolve any disputes between both sides, with recourse to European Court of Justice only on legal issues. Such rulings to be binding upon the tribunal. UK to be involved in relevant EU agencies, systems and databases.
Consultation: UK to be involved in consultations at an early stage on new policy and legislative proposals in this area from the European Commission.
Costs: Appropriate financial contribution from UK to costs of policy work done by the European Commission in this area.
BCC position: Clear win for exporters in sectors like steel, aluminium, hydrogen, electricity. CBAM obligations on quarterly reporting and liability for up to £800m in potential charges, from January 2026 between the UK and EU, will fall away under linkage. Consideration of market changes should be evidence based. BCC has advocated linkage for more than 2 years.

Youth Experience Scheme

Both parties to work towards balanced youth experience scheme – terms to be negotiated.
Would cover following activities: work, studies, au-pairing, volunteering, travelling.
Time limited under a dedicated visa path. Numbers capped and agreed by both parties.
BCC position: Support – document echoes BCC language. Want to engage with both sides on specific terms, charges, costs and opportunities.

Erasmus+ Associate Membership

UK and EU to negotiate UK associate membership of Erasmus+ Union policy on reciprocal engagement in exchanges, education, skills, training, youth and sport.
Objectives of Erasmus+:
to promote learning mobility of individuals and groups, as well as cooperation, quality, inclusion and equity, excellence, creativity and innovation at the level of organisations and policies in the field of education and training.
to promote non-formal and informal learning mobility and active participation among young people, as well as cooperation, quality, inclusion, creativity and innovation at the level of organisations and policies in the field of youth.
to promote learning mobility of sport staff, as well as cooperation, quality, inclusion, creativity and innovation at the level of sport organisations and sport policies.
Specific terms, including mutually agreed financial terms and extent of participation, to be negotiated in order to ensure a fair balance on the contributions of and benefits to the UK.

Competition Policy Co-Operation

Agreement on competition policy co-operation to be signed.
Technical negotiations concluded in October 2024 for a competition cooperation agreement, involving dialogue and co-operation between competition regulators in the EU and UK.
Will involve notification of major merger investigations, co-ordination of investigations in both jurisdictions where necessary, and avoiding conflicts.
Council of European Union now has the proposals from the European Commission (as of 20 May 2025) for approval to sign and conclude the agreement.
Deal will come into effect once ratification by both sides is complete.

Europol Co-Operation

Seeking better implementation on police and judicial co-operation in criminal matters and fully using scope of the TCA.
Ensure pending arrangements for greater co-operation between the UK and Europol are finalised swiftly.
Europol and UK National Crime Agency to be encouraged to increase co-operation on framework of analysis projects and operational action plans within the European Multidisciplinary Platform Against Criminal Threats.
Co-operation on mutually beneficial exchange of information related to terrorism and other serious crimes.
Reinforce mutual and reciprocal exchanges of data on fingerprints, DNA, and criminal records of third country nationals.
Explore extending the exchange of data to facial images for the prevention, detection and investigation of criminal offences.
Examine difficulties in obtaining data from electronic communication and other relevant service providers in each other’s jurisdiction and explore potential solutions.

EU Drugs Agency Co-Operation

UK and EU agree desirability of reciprocal exchange of information between the EU Drugs Agency and the UK on drugs risks and threats.
UK/EU propose the EU Drugs Agency and the relevant United Kingdom authorities conclude a working arrangement to meet those objectives.

Additional Areas for Co-Operation

Maritime security and safety – enhanced co-operation on ship and port facility security, maritime safety and accident reporting, maritime cyber security, security aspects of maritime autonomous surface ships, International Maritime Organisation security initiatives.
Development and Disaster co-operation – deepen development and humanitarian response co-operation.
Health – exchanges and co-operation – on emerging health threats, to prevent and mitigate against future pandemics and health crises, health security, chemical and biological security.
Cultural and Linguistic exchanges – continue to support but no confirmation of agreement on touring artists and ability to enter without a visa. This could be linked with other areas for subsequent negotiation.
Borders and eGates – continue co-operation, including potential use of eGates where appropriate. No legal barrier on UK nationals using EU member states eGates but will need follow up discussions on implementation and timing of changes at airports and ports.
New energy technology regulation – continued technical regulatory exchanges on new energy technologies such as hydrogen, carbon capture, utilisation and storage and biomethane.
Recognition of professional qualifications – establish dedicated dialogues on entry and temporary stay of natural persons for business purposes, including the sponsorship scheme, and recognition of professional qualifications.
Mutual Legal Assistance – intensify technical work, in the relevant Specialised Committee, to further streamline co-operation on mutual legal assistance.
Migration co-operation (including Agencies) – further action to tackle people smuggling and to deepen information sharing to control and manage migration at external borders. Increased mutual sharing of information, country expertise and analysis, to enable better coordination. Joint working in international fora. Enhanced UK cooperation with Europol and the European Migrant Smuggling Centre.

Explore Possibilities for Further Agreements

UK participation in Security Action For Europe (SAFE) – swift exploration of potential for UK participation in the enhanced €150bn co-operation on defence procurement fund, under the forthcoming SAFE instrument. Scale of UK access would have to be negotiated in any secondary agreement between both sides. Likely this will involve financial contribution from the UK.
UK participation in EU internal energy market – explore scope for UK participation in the EU internal electricity trading market, including the EU’s trading platforms. Any agreement would need to cover the new relationship, state aid, renewables, and environmental protection. The agreement would involve dynamic alignment, and consultation in relevant policy areas.
Security and judicial co-operation – agency co-operation and information exchange
Visa abuse exchanges – exchanging analysis on visa abuse by third country nationals.

Security and Defence Partnership

Agreement recalls common responsibilities of the UK and EU for European security.
Agenda also includes cyber and hybrid security threats, space, and resilience of critical infrastructure.
Cyber and counter-terrorism dialogues between UK and EU established under the TCA.
New Partnership facilitated by dialogue and consultation to facilitate information exchange, steering and oversight.
6 monthly meetings (and potential invitations to other high-level meetings including the Council of the European Union) between UK Foreign and Defence Secretaries and the EU High Representative for strategic discussions on Russia and Ukraine, Western Balkans, Indo-Pacific region and hybrid threats.
Dedicated annual Defence and Security Dialogue.
Exchanges and close co-operation on regional security issues, peace building and crisis management, maritime security, space, cyber and counter-terrorism.
Both sides seek to build upon the Partnership agreement to quickly explore possibilities for mutually beneficial enhanced cooperation created by the SAFE EU instrument on defence.
SAFE legislative framework is expected by be in place by mid-June 2025.
Secondary legally binding agreement will be required to provide UK access to SAFE.
€150bn of loans and guarantees for EU rearmament.
Secondary agreement could provide access to consortia arrangements for procurement between EU member states and third countries with defence and security agreements with the EU.
Scale of any UK access would have to be determined by negotiations.

BCC Insights Unit Research – 2024

Two fifths (41%) of UK exporters disagree the Brexit deal is helping them grow sales. Conversely, only 14% of UK exporters think the deal is helping.
Companies say the biggest barriers to exporting to the EU are customs procedures and documentation (45%), export documentation (39%), regulations and standards (35%) and tariffs (33%).
Awareness of upcoming changes in trade rules and regulations being made by either the UK or the EU are also alarmingly low, with more than three quarters of firms knowing no details of much of the legislation.

BCC Priorities for UK-EU Reset

BCC TCA Four Years On: A Manifesto to Reset UK-EU Trade (December 2024)
14 recommendations tailored for the 2025 reset of UK relations with the EU including trade and economic partnerships.
Cover areas such as SPS, VAT, safety and security declarations, PEM Convention, business and youth mobility, regulatory co-operation.
Underpinned by Insights Unit research from 1,300 business responders.
Shared with DBT, HMT, Cabinet Office.
Read by Ministers, advisers and officials across Government. Gave evidence to EU27 Ambassadors on report in February 2025.
Paymaster-General Rt Hon Nick Thomas-Symonds MP and EU Ambassador Pedro Serrano attended BCC Business Council meeting on 15 May 2025.

BCC Key Messages from Summit

Welcome the successful summit – marks a turning point in UK/EU relations and business supports that in terms of trade, plus co-operation on energy, defence, and security. A win-win outcome benefitting businesses and economic growth for both sides.
Support the Security and Defence Partnership and the new opportunities for co-operation. Now we need to build upon this to ensure UK defence companies can provide the hardware to meet European defence procurement needs going forward. This can be done through involvement in mechanisms like the €150bn SAFE venture – a win-win on defence.
Deal meets key priorities the Chamber Network has called for over the last four years. A reduction in red tape for exporting goods, easier business travel, a balanced youth mobility scheme, and linkage of our Emission Trading Schemes to ensure stronger energy co-operation and no new barriers to trade.
Now both sides need to negotiate the final agreements and implement them.

BCC Success from Summit

Top 7 objectives for the UK-EU Leaders’ Summit on May 19 were: 

Negotiate a UK-EU deal which either eliminates or greatly reduces the complexity of exporting food and plant products for SMEs.   
Produce a balanced Youth Mobility scheme between the UK and EU, covering school visits and exchanges, and a time-limited ability to work for young people.  
UK to rejoin the Pan-Euro-Mediterranean (PEM) convention to align rules on raw materials and components that can be used in exports without incurring tariffs.
Establish a supplementary deal, like Norway’s with the EU, that exempts smaller UK firms from the requirement to have a fiscal representative for VAT in the EU.   
Make a deal to allow UK firms to travel and work for longer in the EU and vice versa, and provide mutual recognition of professional qualifications.      
Link the Emissions Trading Schemes of the UK and EU to avoid charges on carbon embedded in exports in both directions.  
Negotiate a formal Defence and Security Pact providing clear lines of co-operation and secondary agreements. Allowing UK companies to bid for defence procurement contracts in the EU, in consortia with EU partner companies on a ‘pay to play’ basis.

We secured or made substantial progress on FIVE out of our SEVEN top objectives.

What’s Next?

BCC Trade Survey (Summer 2025)
BCC TCA at 5: Policy and Insights publication (December 2025)
UK and EU to reach agreements on SPS, ETS linkage, youth experience and associate membership of Erasmus+
Ratify and implement agreement on Competition Co-operation
Finalise timeline for implementation of Entry/Exit Scheme and usage by UK nationals of eGates at EU borders.
Windsor Framework next stage of implementation on food movements (1 July 2025)
Full EU CBAM rollout to be completed by 1 January 2026. UK CBAM due to be introduced in January 2027. EU Deforestation Regulation due to apply from end of 2025 for larger companies.
Next UK-EU summit (mid-2026)