Select committee: Business, Innovation, Science and Trade Committee

5th Report – How to strengthen UK-EU relations

HC – 814 Published 4 April 2025

At a glance10 recommendations and 11 conclusions · No government response linked yet: deadline 4 June 2025, 515 days ago

The government's response

No government response linked yet: deadline 4 June 2025, 515 days ago.

Sources

Recommendations and conclusions 21

  1. 1
    The UK Government should undertake to ensure a new UK-EU Security Pact is agreed, including... Conclusion Conclusion (the committee's words)
    The UK Government should undertake to ensure a new UK-EU Security Pact is agreed, including a shared defence industrial strategy to ensure that Euro- NATO allies are procuring the best equipment and most potent capabilities– without regard to country of origin within our pool of allies–in the most efficient and rapid way. (Recommendation, Paragraph 14)
  2. 2
    Any new UK-EU security arrangements include an explicit recognition that it would be mutually beneficial... Conclusion Conclusion (the committee's words)
    Any new UK-EU security arrangements 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 16)
  3. 3
    The UK should work closely with the EU to strengthen coordinated action against non-market economies... Conclusion Conclusion (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 abuse 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 18)
  4. 4
    To support the fight against economic crime, we urge the Government to explore with the... Recommendation Recommendation (the committee's words)
    To support the fight against economic crime, we urge the Government to explore with the EU where there are further opportunities for deepening law enforcement cooperation as part of the ‘reset’ and the upcoming review of the implementation of the TCA, in particular as regards real-time intelligence exchanges. We hope to see the announcement of clear roadmap for further negotiations in this area at the forthcoming UK/EU summit. (Recommendation, Paragraph 21)
  5. 5
    The UK and EU both support a stable free trading system. Conclusion Conclusion (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 24) 33 Securing Prosperity
  6. 6
    We support the Government’s intention to negotiate a Sanitary and Phytosanitary (SPS) agreement with the... Conclusion 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. Ensuring smooth movement of these critical resources is essential not only for trade but also for supply chain resilience. A strong SPS agreement would also ease movement of goods between Great Britain and Northern Ireland, strengthening stability and ensuring the reliable flow of essential goods under the Windsor Framework. (Recommendation, Paragraph 30)
  7. 7
    We concur with the recommendation of the EU-UK Parliamentary Partnership Assembly that there would be... Conclusion Conclusion (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 35)
  8. 8
    The Government should seek to maximise cuts to the red tape currently strangling free trade... Recommendation Recommendation (the committee's words)
    The Government should seek to maximise cuts to the red tape currently strangling free trade with the EU, thereby fulfilling the largely unexploited provisions in the TCA relating to customs cooperation. In particular, it should engage with the EU on mutual recognition of the UK and EU Authorised Economic Operator schemes for customs simplification, an agreement to waive safety and security declarations for imports and exports and cooperation on roll-on, roll-off cargo traffic. (Recommendation, Paragraph 42)
  9. 9
    The Government should re-join the Pan-Euro-Mediterranean (PEM) Convention alongside the Trade and Cooperation Agreement (TCA). Recommendation Recommendation (the committee's words)
    The Government should re-join the Pan-Euro-Mediterranean (PEM) Convention alongside the Trade and Cooperation Agreement (TCA). As part of this step, we urge the Government to encourage PEM members to replicate the TCA’s specific Rules of Origin for electric vehicles that encourage onshoring in both the UK and the EU. (Recommendation, Paragraph 45) Securing Prosperity
  10. 10
    We recommend that the Government consults with the business community, unions, workers and consumer groups... Recommendation 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 will 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, the Gulf Cooperation Council and India. Where there is significant mutual gain from compatible regulation with the EU, the Government should commit to a regulatory roadmap that maintains 34 compatible regulation with the EU and seek, where beneficial for both parties, mutual recognition of conformity assessments. (Recommendation, Paragraph 50)
  11. 11
    Energy trade represents a major opportunity for enhanced UK-EU trade and cooperation. Conclusion 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 59)
  12. 12
    To achieve the shared strategic objectives of reducing carbon emissions, improving energy security, and expanding... Recommendation 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 60)
  13. 13
    To prevent the UK and EU’s respective Carbon Border Adjustment Mechanism schemes from becoming barriers... Recommendation 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, the Government should seek to link, and keep aligned, the UK Emissions Trading Scheme with the EU Emissions Trading Scheme. (Recommendation, Paragraph 61) Prosperity in Services
  14. 14
    We note the extensive cooperation between the Government and the European Commission on the Data... Recommendation 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 continues and takes monitoring the EU’s Data Union Strategy upon its publication and assess any relevant implications for UK policy, and take whatever steps are required to ensure a permanent data adequacy agreement is secured. (Recommendation, Paragraph 66)
  15. 15
    The Government should prioritise financial services in EU relations by using the EU-UK Financial Regulatory... Recommendation 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 70)
  16. 16
    UK participation in the EU’s research programmes is mutually beneficial: enabling the best researchers to... Conclusion Conclusion (the committee's words)
    UK participation in the EU’s research programmes is mutually beneficial: enabling the best researchers to work together across borders contributes to research excellence, which in a competitive global environment is essential for generating innovation and growth, and advancing our security interests. If we cooperate less in research, we will both be less competitive, less secure, and generate less growth. (Conclusion, Paragraph 73) 35
  17. 17
    Research cooperation also ensures a deep mutual understanding of our approaches to emerging technologies at... Conclusion Conclusion (the committee's words)
    Research cooperation also ensures a deep mutual understanding of our approaches to emerging technologies at an upstream stage, which helps to maintain an overall compatibility of approaches including regulation. (Conclusion, Paragraph 74)
  18. 18
    To achieve the best outcomes in terms of innovation and in turn growth, we urge... Recommendation Recommendation (the committee's words)
    To achieve the best outcomes in terms of innovation and in turn growth, we urge that all elements of FP10 should be open to third-country participation, and urge the Government to engage with UK research communities to maximise UK participation. (Recommendation, Paragraph 75)
  19. 19
    We recommend that the Government draws lessons from the slow pace of mutual professional qualification... Recommendation Recommendation (the committee's words)
    We recommend that the Government draws lessons from the slow pace of mutual professional qualification recognition negotiations to date, re- assesses 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 79)
  20. 20
    We recognise the importance of reintroducing mutual recognition of professional qualifications between the UK and... Conclusion Conclusion (the committee's words)
    We recognise the importance of reintroducing mutual recognition of professional qualifications between the UK and the EU and 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 82)
  21. 21
    The UK and the EU should consider the development of an ambitious, visa- based youth... Conclusion Conclusion (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 86) 36