Read the full paper here.

The European Union remains the United Kingdom’s largest trading partner. In 2024, 46% of the UK’s total trade in goods and services was with the European Union, reaffirming Europe’s role as Britain’s largest and most important trading partner — supporting millions of jobs, fuelling investment, and driving economic growth across the country. However, the UK’s economic relationship with the EU is currently limited by barriers that undermine competitiveness, opportunity and growth.

While rebuilding defence and security cooperation is crucial in today’s volatile world, it is equally vital not to lose sight of the broader economic agenda. Without a comprehensive reset in our trading relationship, Britain risks strategic drift — undermining its long-term competitiveness and influence.

Since the Trade and Cooperation Agreement (TCA) came into force, the geopolitical and economic environment has changed dramatically. Global supply chain pressures, Russia’s invasion of Ukraine, rising protectionism, and rapid technological change all underscore the need for a serious reassessment of the Labour Government’s negotiating red lines.

With the UK–EU Summit on 19 May fast approaching, there is an urgent opportunity to reset UK–EU economic relations, focusing on targeted agreements that deliver mutual economic growth and renewed stability.

1. Secure a Sanitary and Phytosanitary (SPS) Agreement

• Negotiate a bespoke UK–EU SPS Agreement, drawing on existing models such as the EU–New Zealand and EU–Switzerland agreements, to reduce border checks and streamline certification.
• Remove or minimise the need for Export Health Certificates (EHCs) and other unnecessary bureaucratic barriers. • Reopen full market access for sensitive exports, including seed potatoes and bivalve molluscs.

2. Negotiate a Mutual Recognition Agreement (MRA) on Conformity Assessment Bodies

• Agree a Mutual Recognition Agreement allowing UK-based bodies to certify goods to EU standards, removing the need for duplicate testing. 
• Support small and medium-sized manufacturers in sectors like medical devices, machinery, and electrical goods.

3. Improve Professional Mobility

• Negotiate a comprehensive UK–EU Mutual Recognition of Professional Qualifications (MPRQ) Agreement to restore widespread recognition of UK professional qualifications across the EU. 
• Base the agreement on historic regulatory alignment and the previous MRPQ Directive, rather than sector-by-sector negotiations.
• Expand the range of short-term business activities permitted without a visa, including client meetings, training, and project delivery. 

Read the full paper here.