Select Committee · Business and Trade Committee

UK trade with the EU

Status: Open Opened: 8 Apr 2026 11 recommendations 14 conclusions 1 report

At a Joint Summit in May 2025, the UK and EU agreed to a Security and Defence Partnership, and published a “Common Understanding”, setting out shared commitments to deepen cooperation. Progress since that initial summit has been limited, with core areas for agreement still to conclude. The Business and Trade Committee therefore wishes to assess … Show more

Reports

1 report
Title HC No. Published Items Response
4th Report - UK-EU relations a decade on HC 126 22 Jun 2026 25 Pending

Recommendations & Conclusions

25 items
1 Conclusion 4th Report - UK-EU relations a decade on

The Common Understanding is a significant positive step to improve UK-EU relations.

The Common Understanding is a significant positive step to improve UK-EU relations. Thirteen months on, however, an underwhelming amount of progress has been made. So far, the Reset has delivered limited meaningful impact. (Conclusion, Paragraph 9)

Department for Business and Trade
2 Recommendation 4th Report - UK-EU relations a decade on

We recommend that Government act quickly to make more progress on the Reset.

We recommend that Government act quickly to make more progress on the Reset. It must also ensure future such agreements are accompanied with clear policy workplans and milestones for delivering outcomes. (Recommendation, Paragraph 10)

Department for Business and Trade
3 Conclusion 4th Report - UK-EU relations a decade on

Failure to secure UK participation in SAFE was a disappointing outcome.

Failure to secure UK participation in SAFE was a disappointing outcome. It should not preclude further defence cooperation between the UK and the EU. The Committee agrees that the cost of UK participation, if reported correctly, was too high. On that basis, we agree with the Government’s decision not to … Read more

Department for Business and Trade
4 Recommendation 4th Report - UK-EU relations a decade on

We recommend that the Government re-open negotiations on UK participation in future rounds of SAFE...

We recommend that the Government re-open negotiations on UK participation in future rounds of SAFE and prioritise inclusion in the EU’s “Loan for Ukraine”. In the interim, it must continue to pursue bilateral defence partnerships with EU Member States, building upon previous successes such as the Trinity House Agreement and … Read more

Department for Business and Trade
5 Conclusion 4th Report - UK-EU relations a decade on

A Sanitary and Phytosanitary (SPS) agreement with the EU is on balance in the UK’s...

A Sanitary and Phytosanitary (SPS) agreement with the EU is on balance in the UK’s interest. It will help support increased trade in agricultural goods. However, greater transparency and guidance is needed on its potential impacts on affected businesses. Clarity is also required on the future implications of EU legislation … Read more

Department for Business and Trade
6 Recommendation 4th Report - UK-EU relations a decade on

We recommend that the Government commit to consult with businesses on SPS throughout the Reset.

We recommend that the Government commit to consult with businesses on SPS throughout the Reset. At the conclusion of its SPS negotiations with the EU, ministers must publish a detailed and comprehensive SPS agreement implementation plan. This plan should set out how it will provide support for businesses to ensure … Read more

Department for Business and Trade
7 Conclusion 4th Report - UK-EU relations a decade on

We welcome the ambition to conclude talks on an Emissions Trading Scheme agreement by the...

We welcome the ambition to conclude talks on an Emissions Trading Scheme agreement by the time of the 2026 UK-EU summit. Linking UK-EU Emissions Trading Schemes will deliver mutual benefits to businesses. Mutual Carbon Border Adjustment Mechanism (CBAM) waivers will also support trade in emission-intensive sectors and support joint progress … Read more

Department for Business and Trade
8 Recommendation 4th Report - UK-EU relations a decade on

We recommend that the Government move as quickly as possible to conclude the ETS linkage...

We recommend that the Government move as quickly as possible to conclude the ETS linkage agreement. Once negotiations have concluded, it should seek provisional application of the agreement before its formal ratification. This would allow industry to feel its benefits, as soon as possible. (Recommendation, Paragraph 26) Read more

Department for Business and Trade
9 Conclusion 4th Report - UK-EU relations a decade on

The current electricity trading arrangements with the EU have caused market inefficiencies and increased UK...

The current electricity trading arrangements with the EU have caused market inefficiencies and increased UK energy costs. Reducing these costs through an agreement with the EU will provide significant benefits to UK businesses and consumers and support the broader UK and EU energy transitions towards renewables. (Conclusion, Paragraph 30) Read more

Department for Business and Trade
10 Conclusion 4th Report - UK-EU relations a decade on

The need for a UK-EU agreement on energy trading is clear.

The need for a UK-EU agreement on energy trading is clear. The current situation in Iran has compounded the need for a rapid agreement to be reached. We note that negotiations have been too slow to start and the timelines for completion are too long. (Conclusion, Paragraph 31) Read more

Department for Business and Trade
13 Recommendation 4th Report - UK-EU relations a decade on

We therefore recommend the Government sets out the UK ambitions for the agreement on a...

We therefore recommend the Government sets out the UK ambitions for the agreement on a Youth Experience Scheme. This should set out the overall numbers of participants allowed, the visa timeframes, visa requirements, and its position on access to home fee rates at UK universities. (Recommendation, Paragraph 36) 53 Read more

Department for Business and Trade
14 Recommendation 4th Report - UK-EU relations a decade on

We welcome the UK re-joining the Erasmus+ scheme.

We welcome the UK re-joining the Erasmus+ scheme. To support transparency, we recommend that the Government set out the underlying data to support the UK’s decision to rejoin, a full cost- benefit analysis of long-term membership of Erasmus+, and its view on continued UK association as part of the 2028–2034 … Read more

Department for Business and Trade
16 Recommendation 4th Report - UK-EU relations a decade on

We recommend that the Government uses the Reset to urgently prioritise improved mobility and visa...

We recommend that the Government uses the Reset to urgently prioritise improved mobility and visa arrangements for touring artists, moving beyond commitments to further dialogue, and delivers practical, measurable outcomes that support the UK’s creative industries. (Recommendation, Paragraph 42) Read more

Department for Business and Trade
17 Conclusion 4th Report - UK-EU relations a decade on

We welcome the commitments made in the Common Understanding to seek improved business mobility arrangements.

We welcome the commitments made in the Common Understanding to seek improved business mobility arrangements. However, we note that progress on this issue is unlikely until after the planned UK-EU dialogues in the second quarter of this year. This is far too slow. (Conclusion, Paragraph 45) Read more

Department for Business and Trade
18 Recommendation 4th Report - UK-EU relations a decade on

Commitments to continued dialogue without defined objectives and timelines are inadequate.

Commitments to continued dialogue without defined objectives and timelines are inadequate. We recommend that the Government clearly identifies the priority services sectors for improved business mobility and sets out, in precise terms, the specific outcomes it is seeking from the EU. The Government should also define clear timelines for their … Read more

Department for Business and Trade
19 Conclusion 4th Report - UK-EU relations a decade on

We welcome the commitments from the Government to seek improved outcomes on the Mutual Recognition...

We welcome the commitments from the Government to seek improved outcomes on the Mutual Recognition of Professional Qualifications (MRPQ) arrangements. The existing Trade and Cooperation Agreement (TCA) framework is clearly unfit for this purpose, having delivered no real benefits since the agreement took effect in 2021. The Summit outcomes however … Read more

Department for Business and Trade
20 Recommendation 4th Report - UK-EU relations a decade on

We recommend that the Government pursue an alternative route, outside the TCA, to secure EU-wide...

We recommend that the Government pursue an alternative route, outside the TCA, to secure EU-wide Mutual Recognition of Professional Qualifications (MRPQ) agreements and prioritise concluding these deals at pace. We ask that the Government set out whether the UK-Switzerland MRPQ Agreement could serve as a practical template for their delivery. … Read more

Department for Business and Trade
21 Conclusion 4th Report - UK-EU relations a decade on

We welcome the concept of a Security and Defence Partnership to establish a bespoke framework...

We welcome the concept of a Security and Defence Partnership to establish a bespoke framework for shared security and defence. The Committee is concerned, however, that it contains no meaningful 54 commitments to specific action or a reporting mechanism through which to judge progress. Significant omissions include a joint defence … Read more

Department for Business and Trade
22 Conclusion 4th Report - UK-EU relations a decade on

The UK and the EU face shared challenges and risks to domestic steel production from...

The UK and the EU face shared challenges and risks to domestic steel production from global steel overcapacity. The Reset presents a clear opportunity for both sides to work together on addressing this issue, building upon the limited progress of the initial May 2025 summit’s steel agreements. (Conclusion, Paragraph 60) Read more

Department for Business and Trade
23 Recommendation 4th Report - UK-EU relations a decade on

We recommend that the Government urgently seek to reach an agreement with the EU on...

We recommend that the Government urgently seek to reach an agreement with the EU on steel tariffs before 1 July 2026 or as soon as possible thereafter, to minimise harm to domestic industries. We urge the Government to ensure UK country-specific import quotas with the EU are not further reduced … Read more

Department for Business and Trade
24 Conclusion 4th Report - UK-EU relations a decade on

We are disappointed by the limited progress the Government has made against several of the...

We are disappointed by the limited progress the Government has made against several of the Committee’s previous recommendations. We ask that the Government, in further discussions with the EU, re- double its efforts to secure meaningful improvements for the UK. (Recommendation, Paragraph 83) Read more

Department for Business and Trade
25 Conclusion 4th Report - UK-EU relations a decade on

The current pace and ambition of the reset is insufficient to address the challenges faced...

The current pace and ambition of the reset is insufficient to address the challenges faced by both sides. Without a firm UK strategy and meaningful commitments, the reset increasingly risks being blown off course by other global events. The 2026 Leader’s Summit should act as a critical moment for both … Read more

Department for Business and Trade

Correspondence

7 letters
DateDirectionTitle
2 Jul 2026 To cttee Letter from the Port of Dover relating to EU Entry Exit System border arrangeme…
26 Jun 2026 From cttee Letter to the Port of Dover relating to border control operations for the forth…
19 May 2026 To cttee Letter from the Minister of State for Trade relating to further information req…
22 Apr 2026 To cttee Letter from the Minister for the Constitution and EU Relations relating to an e…
15 Apr 2026 To cttee Letter from the Minister of State for Trade relating to the Department's respon…
15 Apr 2026 From cttee Letter to the Minister for the Constitution and EU Relations relating to an evi…
15 Apr 2026 To cttee Letter from the Port of Dover relating to the Committee's visit to its faciliti…