Mon, 19 May 2025

Mon, 19 May 2025 What will 'reset' deal mean for UK economic growth?

The deal paves the way for more common ground with the EU, but only dismantles a fraction of the trade barriers erected post-Brexit.

* The UK and EU have agreed a new post-Brexit deal, which will reduce trade barriers and increase exports.
* The agreement focuses on plant and animal health (SPS) standards, reducing red tape for foodstuffs and allowing over 1,500 products to cross borders more easily.
* Exports of agricultural products from the UK to the EU have dropped by a third since 2019 due to extra certification and checks.
* The government claims the deal will be worth £8.9bn to the UK by 2040, but this is equivalent to only 0.3% of GDP.
* The agreement also extends the fisheries agreement by 12 years, which may disappoint some fishing communities.
* More trade deals are in the pipeline, including a youth mobility scheme and mutual recognition of professional qualifications.
* However, economists say that even these agreements will not fully compensate for the damage to growth caused by Brexit, which is estimated to be equivalent to £100bn per year.
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