Select committee: Business, Innovation, Science and Trade Committee

6th Report – How to strengthen UK-EU relations: Policy Priorities for the Summit

HC 908 Published 15 May 2025

At a glance17 recommendations and 3 conclusions · Government response published 5 September 2025 (deadline 15 July 2025)

The government's response

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government's response points to the outcomes of the UK-EU Summit on 19 May as its main answer to the Committee, and states that further technical negotiations are required to implement the commitments.

  • On the SPS agreement, the government says it agreed "the broad parameters" at the Summit, will "start talks straight away", and that implementing the agreement "will require primary legislation".
  • On mutual recognition of conformity assessments, the government "notes" the suggestion and says the Summit outcomes "did not include a commitment to negotiate MRAs", while remaining committed to tackling trade barriers.
  • On the Pan-Euro-Mediterranean Convention, the government says only that the UK "will now engage business and Pan-Euro-Mediterranean (PEM) members to consider the benefits" of joining.
  • On research, the government says the UK "is interested in potentially associating to FP10, assuming it is open, relevant and provides good value" for researchers and taxpayers.

Read the government's response ↗ Report an error

Sources

Recommendations and conclusions 20

  1. 2
    Mandate UK-EU security arrangements include explicit recognition of mutually beneficial critical infrastructure protection. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    Any new UK-EU security arrangements must include an explicit recognition that it would be mutually beneficial to act together to guard the critical national infrastructure on which the UK and EU business community depends, from those who wish it ill. (Recommendation, Paragraph 12)
  2. 3
    Enhance UK-EU cooperation against unfair trade practices, including forced labour and industrial subsidies. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    The UK should work closely with the EU to strengthen coordinated action against non-market economies that undermine the international trading system through unfair practices, including use of forced labour, industrial subsidies, state-owned enterprise advantages, and forced technology transfers. Enhancing cooperation on trade defence instruments—such as anti-subsidy and anti-dumping measures—along with alignment of safeguards against use of forced labour in supply chains will help ensure a more effective and consistent response to market distortions that threaten fair competition. (Recommendation, Paragraph 15)
  3. 4
    Explore opportunities to deepen UK-EU law enforcement cooperation, securing real-time intelligence exchanges. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    To support the fight against economic crime, we urge the Government to explore how to maximise opportunities to deepen law enforcement cooperation with the EU, in particular to secure real-time intelligence exchanges. We hope to see the announcement of a clear roadmap for further negotiations in this area at the forthcoming UK/EU summit. (Recommendation, Paragraph 18)
  4. 5
    Join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) to uphold a functioning dispute resolution system. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    The UK and EU both support a stable free trading system. Like the EU, the UK Government should join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) to help uphold a functioning dispute resolution system while broader WTO reforms are negotiated. (Recommendation, Paragraph 21)
  5. 6
    Prioritise minimisation of Northern Ireland trade burdens, building trust and maintaining clear communication. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    The Committee urges the Government to prioritise the minimisation of trade burdens in Northern Ireland as a fundamental element of any future UK- EU reset. This should be achieved through a strong emphasis on building trust between the Parties, maintaining clear and consistent communication 45 with the Northern Irish business community and civil society, and ensuring Northern Ireland remains central to discussions on trade easements. (Recommendation, Paragraph 26)
  6. 7
    Committee supports Government intention to negotiate a UK-EU Sanitary and Phytosanitary (SPS) agreement. Conclusion · addressed to Department for Business and Trade Conclusion (the committee's words)
    We support the Government’s intention to negotiate a Sanitary and Phytosanitary (SPS) agreement with the EU to reduce the need for regulatory formalities and controls at the border for agri-food products, plants and animals. (Recommendation, Paragraph 31)
  7. 8
    Call on Government to enable a multi-year fisheries settlement, signalling a fair deal. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    We concur with the recommendation of the EU-UK Parliamentary Partnership Assembly that there would be value in “providing a signal at or before the [UK-EU] Summit that a fair deal on fisheries will be reached” and call on the Government to enable a multi-year settlement. (Recommendation, Paragraph 36)
  8. 9
    Maximise cuts to EU trade red tape, pursuing AEO recognition and waiving security declarations. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    The Government should seek to maximise cuts to the red tape currently restricting free trade with the EU, taking full advantage of the customs cooperation provisions in the Trade and Cooperation Agreement. Specifically, it should pursue mutual recognition of UK and EU Authorised Economic Operator schemes for customs simplification, a bilateral waiver of safety and security declarations, and enhanced cooperation to facilitate roll-on, roll-off cargo traffic. In addition, the Government should consult with industry on a regular basis to identify and address further opportunities to streamline border processes. (Recommendation, Paragraph 43)
  9. 10
    Consult industry on rejoining the Pan-Euro-Mediterranean Preferential Rules of Origin Convention. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    The Government should consult with industry on rejoining the Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin as an alternative to the rules of origin arrangements agreed in the Trade and Cooperation Agreement. (Recommendation, Paragraph 49)
  10. 11
    Identify sectors for compatible EU regulation and commit to a corresponding regulatory roadmap. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    We recommend that the Government consults with the business community, unions, workers and consumer groups and identifies sectors of the economy where, over the next ten years, there could be mutual gains from maximising compatible regulation with the EU. This should include an assessment of the flexibilities the UK might need to maintain membership of existing trade deals like CPTPP, and to agree the free trade deals currently under negotiation with Switzerland and the Gulf Cooperation Council. Where there is significant mutual gain from compatible regulation with the EU, the Government should commit to a regulatory roadmap that maintains compatible regulations with the EU. It should also seek, where beneficial for both parties, mutual recognition of conformity assessments. (Recommendation, Paragraph 54)
  11. 12
    Energy trade presents a major opportunity for enhanced UK-EU cooperation. Conclusion · addressed to Department for Business and Trade Conclusion (the committee's words)
    Energy trade represents a major opportunity for enhanced UK-EU trade and cooperation. Given shared strategic objectives—reducing carbon emissions, improving energy security, and expanding renewables—both sides have a mutual interest in strengthening their partnership. (Conclusion, Paragraph 64) 46
  12. 13
    Prioritise UK-EU energy cooperation and seek to agree an efficient electricity trading framework. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    To achieve the shared strategic objectives of reducing carbon emissions, improving energy security, and expanding renewables, the UK and the EU must prioritise energy cooperation in upcoming discussions. There is a clear need to move beyond the current state of implementation of Trade and Cooperation Agreement’s current electricity trading provisions, which industry has deemed unfit for purpose. The Government should review industry proposals for improving market coupling arrangements and seek to agree the most efficient electricity trading framework possible. (Recommendation, Paragraph 65)
  13. 14
    Link and keep aligned the UK and EU Emissions Trading Schemes to prevent trade barriers. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    To prevent the UK and EU’s respective Carbon Border Adjustment Mechanism schemes from becoming barriers to trade in electricity and carbon- intensive goods, when doing so maximises export potential and reduces consumer costs, the Government should seek to link, and keep aligned, the UK Emissions Trading Scheme with the EU Emissions Trading Scheme. The Government should ensure action is in place to mitigate any impacts while the EU’s Carbon Border Adjustment Mechanism is in place and the UK’s is not. (Recommendation, Paragraph 66)
  14. 15
    Monitor EU’s Data Union Strategy and ensure a permanent data adequacy agreement is secured. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    We note the extensive cooperation between the Government and the European Commission on the Data (Use and Access) Bill. We recommend that the Government monitors the EU’s Data Union Strategy upon its publication, assesses implications for UK policy, and take whatever steps are required to ensure a permanent data adequacy agreement is secured. (Recommendation, Paragraph 72)
  15. 16
    Prioritise financial services in EU relations and advance regulatory cooperation via the Forum. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    The Government should prioritise financial services in EU relations by using the EU-UK Financial Regulatory Forum to build on previous best practice and advance regulatory cooperation. (Recommendation, Paragraph 76)
  16. 17
    Make the case for European Research Programmes to be open and maximise UK participation. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    To achieve the best outcomes in terms of innovation and in turn growth, we urge that the Government make the case for all elements of European Research Framework Programmes, including FP10, to be open to third- country participation, and urge the Government to engage with UK research communities to maximise UK participation. (Recommendation, Paragraph 81)
  17. 18
    Publish a new roadmap for negotiating priorities for mutual recognition of qualifications. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    We recommend that the Government draws lessons from the slow pace of mutual professional qualification recognition negotiations to date, reassesses which mutual recognition agreements would contribute most to our mutual economic gain, and publishes a new roadmap of negotiating priorities for mutual recognition of qualifications. (Recommendation, Paragraph 86)
  18. 19
    Continued UK-EU engagement necessary for smoother market access for touring artists. Conclusion · addressed to Department for Business and Trade Conclusion (the committee's words)
    We recognise the importance of reducing barriers to trade for touring artists. Given the economic and cultural significance of these sectors, continued engagement between UK and EU regulatory bodies is necessary to facilitate smoother market access. (Recommendation, Paragraph 89) 47
  19. 20
    Develop ambitious UK-EU visa-based youth mobility scheme for cultural and educational exchange. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    The UK and the EU should consider the development of an ambitious, visa- based youth mobility scheme with a limited number of participants. This initiative would allow young people to spend up to 12 months in the UK or EU for cultural and educational exchange, facilitating language acquisition, fostering a deeper understanding of shared European history and heritage, and enabling work and apprenticeship opportunities. Such an initiative would contribute to the long-term strengthening of trust and cooperation, which are essential foundations for international trade relations and mutual security. (Recommendation, Paragraph 94)
  20. 21
    Expedite efforts to strengthen UK-EU economic competitiveness and strategic alignment. Recommendation · addressed to Department for Business and Trade Recommendation (the committee's words)
    The Committee urges the Government to pursue these opportunities urgently and decisively, ensuring Britain and Europe remain globally competitive and strategically aligned. (Recommendation, Paragraph 100) 48