European Trade Deal

The UK and European Union announced a trade and security deal yesterday, marking a reset in relations nearly a decade after the UK voted to leave the 27-member bloc. Unveiled by Prime Minister Keir Starmer and European Commission President Ursula von der Leyen, the deal aims to ease trade barriers and address security concerns amid Russia’s war in Ukraine and a shifting US role in Europe. It marks the UK’s third trade deal this month, after agreements with the US and India.

The EU remains the UK’s largest trading partner, but UK exports to the bloc have fallen 21% since Brexit. The agreement, projected to add nearly $12B to the UK economy by 2040, includes reduced border checks on food and agricultural products, expanded e-gate access for British travelers at EU airports, a 12-year extension of EU fishing rights in UK waters, and UK participation in a $170B EU defense procurement initiative.

Separately, President Donald Trump announced that Russia and Ukraine will start ceasefire negotiations following a call with Russian President Vladimir Putin yesterday.