Source · Select Committees · Business and Trade Committee
6th Report – How to strengthen UK-EU relations: Policy Priorities for the Summit
Business and Trade Committee
HC 908
Published 15 May 2025
Recommendations
2
Accepted
Mandate UK-EU security arrangements include explicit recognition of mutually beneficial critical infrastructure protection.
Recommendation
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. …
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Government Response Summary
The government accepts the recommendation, stating that the new UK-EU Security & Defence Partnership will enhance cooperation on critical infrastructure resilience, including underwater infrastructure. It confirms the partnership reflects shared interests and will enable working together to tackle risks and build collective resilience.
Department for Business and Trade
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3
Acknowledged
Enhance UK-EU cooperation against unfair trade practices, including forced labour and industrial subsidies.
Recommendation
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 …
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Government Response Summary
The government notes existing UK-EU cooperation on economic stability and supply chain security through regular exchanges and high-level meetings. It states it is exploring ways to exchange views on economic security policies and is reviewing its internal approach to minimise forced labour in supply chains.
Department for Business and Trade
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4
Accepted
Explore opportunities to deepen UK-EU law enforcement cooperation, securing real-time intelligence exchanges.
Recommendation
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 …
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Government Response Summary
The government accepted the recommendation, stating that a package was agreed at the UK-EU Summit to strengthen law enforcement cooperation, including new data exchange capabilities for DNA, facial imagery, criminal records, and biometric data. This will involve increased cooperation with Europol and the EU Drugs Agency.
Department for Business and Trade
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5
Accepted
Join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) to uphold a functioning dispute resolution system.
Recommendation
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. …
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Government Response Summary
The government states that the UK has joined the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) following the publication of the Trade Strategy, reinforcing its commitment to an effective rules-based international trading system.
Department for Business and Trade
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6
Accepted
Prioritise minimisation of Northern Ireland trade burdens, building trust and maintaining clear communication.
Recommendation
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 …
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Government Response Summary
The government states that the Windsor Framework has already removed trade burdens and that UK-EU Summit outcomes will deliver further benefits, particularly on agri-food. It confirms it is keen to progress further discussions on the SPS agreement and will continue to engage with Northern Ireland stakeholders and businesses to implement the Windsor Framework and secure benefits from the new SPS agreement.
Department for Business and Trade
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8
Accepted
Call on Government to enable a multi-year fisheries settlement, signalling a fair deal.
Recommendation
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 …
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Government Response Summary
The government secured a 12-year fishing access arrangement with the EU and announced a new £360 million 'Fishing and Coastal Growth Fund' over 12 years to support the industry.
Department for Business and Trade
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9
Acknowledged
Maximise cuts to EU trade red tape, pursuing AEO recognition and waiving security declarations.
Recommendation
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 …
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Government Response Summary
The government acknowledged the recommendation, stating its commitment to easing trade burdens and its regular engagement with industry through existing forums and with the EU via TCA committees to identify and address issues within the current framework. No specific action was committed regarding mutual recognition of AEO schemes or bilateral waivers.
Department for Business and Trade
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10
Accepted
Consult industry on rejoining the Pan-Euro-Mediterranean Preferential Rules of Origin Convention.
Recommendation
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)
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Government Response Summary
The government accepted the recommendation, stating it will engage with businesses and Pan-Euro-Mediterranean (PEM) members to consider the benefits of the UK joining the PEM convention, as outlined in its Trade Strategy.
Department for Business and Trade
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11
Accepted in Part
Identify sectors for compatible EU regulation and commit to a corresponding regulatory roadmap.
Recommendation
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 …
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Government Response Summary
The government acknowledges the importance of compatible regulation with the EU and states it will continue to engage with industry and consider consistent approaches where beneficial. However, it notes that recent summit outcomes did not include a commitment to negotiate mutual recognition agreements, despite recognizing their value.
Department for Business and Trade
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13
Accepted in Part
Prioritise UK-EU energy cooperation and seek to agree an efficient electricity trading framework.
Recommendation
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 …
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Government Response Summary
The government accepted the recommendation in part, welcoming energy cooperation and stating that at the UK-EU Summit, agreements were made to stabilise the TCA Energy Title and explore UK participation in EU electricity trading platforms. They also agreed to strengthen cooperation on clean energy technologies.
Department for Business and Trade
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14
Accepted
Link and keep aligned the UK and EU Emissions Trading Schemes to prevent trade barriers.
Recommendation
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 …
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Government Response Summary
The government accepted the recommendation, stating that parameters for a new agreement to link the UK and EU Emissions Trading Schemes have been agreed, with technical negotiations to begin shortly. This agreement is expected to facilitate mutual CBAM exemptions and achieve economic benefits. The government is also engaging with businesses to mitigate the impacts of the EU CBAM.
Department for Business and Trade
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15
Acknowledged
Monitor EU’s Data Union Strategy and ensure a permanent data adequacy agreement is secured.
Recommendation
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 …
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Government Response Summary
The government acknowledged the recommendation, stating it will follow the EU Data Union Strategy with interest and noting the 6-month extension to the UK's adequacy decisions. UK officials will continue to support the ongoing adequacy review process.
Department for Business and Trade
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16
Accepted
Prioritise financial services in EU relations and advance regulatory cooperation via the Forum.
Recommendation
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)
Government Response Summary
The government accepted the recommendation, affirming its commitment to working with the EU on financial services and stating it will continue to use the UK-EU Financial Regulatory Forum to deepen regulatory cooperation, build trust, and support cross-border financial services trade.
Department for Business and Trade
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17
Accepted
Make the case for European Research Programmes to be open and maximise UK participation.
Recommendation
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 …
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Government Response Summary
The government accepted the recommendation, noting its strong cooperation in existing EU research programs and stating it has published a position paper on Framework Programme 10 (FP10). The UK is interested in associating with FP10, assuming it is open and provides value, and will engage in its development from the outset.
Department for Business and Trade
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18
Accepted in Part
Publish a new roadmap for negotiating priorities for mutual recognition of qualifications.
Recommendation
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 …
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Government Response Summary
The government acknowledges limited progress on mutual professional qualification recognition and committed to establishing dedicated dialogues with the EU and working more closely with UK regulators to identify priority sectors for economic benefit. However, it does not explicitly commit to publishing a new roadmap of negotiating priorities.
Department for Business and Trade
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20
Accepted
Develop ambitious UK-EU visa-based youth mobility scheme for cultural and educational exchange.
Recommendation
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 …
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Government Response Summary
The government agreed with the EU to work towards establishing a balanced, time-limited, and capped youth experience scheme, in line with existing UK schemes, to provide cultural and educational exchange opportunities. The exact parameters will be subject to negotiation.
Department for Business and Trade
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21
Accepted
Expedite efforts to strengthen UK-EU economic competitiveness and strategic alignment.
Recommendation
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
Government Response Summary
The government stated it has already worked decisively to strengthen cooperation with the EU and will conclude further technical negotiations as swiftly as possible. They also highlighted broader global policy efforts to re-establish UK leadership on the international stage.
Department for Business and Trade
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Conclusions (3)
7
Conclusion
Accepted
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)
Government Response Summary
The government confirmed its manifesto commitment to a Sanitary and Phytosanitary (SPS) agreement with the EU, stating that broad parameters were agreed at the UK-EU Summit. This will eliminate routine SPS border checks and Export Health Certificates, with talks to begin immediately to implement the agreement.
12
Conclusion
Accepted
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
Government Response Summary
The government welcomed the Committee's conclusion on energy cooperation and stated that the UK and EU agreed to stabilise the TCA's Energy Title, explore UK participation in EU electricity trading platforms, and strengthen cooperation on clean energy technologies.
19
Conclusion
Acknowledged
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
Government Response Summary
The government committed with the EU at the Summit to support travel and cultural exchange for touring artists and will continue to engage with the EU and Member States, including through annual summits and industry stakeholders, to improve touring arrangements.