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

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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

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)

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