(qlmbusinessnews.com . Tues 20th May, 2025) London, UK —
How the New Brexit “Reset” Agreement Will Ease Trade Barriers and Boost GDP
Last week’s “reset” accord between the UK and the EU has been hailed as a “huge” growth opportunity by ministers. Yet, while it represents a welcome easing of post‑Brexit friction, its direct economic impact is likely to be modest.
The agreement chiefly scrappages much of the paperwork and inspections on British and EU food exports under the sanitary and phytosanitary (SPS) regime. For over four years, UK farmers and food exporters have navigated hefty certification requirements—forms running to dozens of pages—that saw some perishable goods spoil en route and exports slump by around one third since 2019. By aligning with EU rules on plant and animal health, the government estimates up to £8.9 billion could be added to GDP by 2040—equivalent to roughly 0.3% of annual output.
Despite the fanfare—including a Thames‑side reception and working lunch—other barriers remain intact. Customs checks, rules of origin paperwork and VAT complexities endure across the Channel. And some critics warn that retailers and wholesalers, rather than consumers, are most likely to pocket any cost savings, limiting the deal’s effect on shop prices.
A further concession extended the post‑Brexit fisheries agreement by 12 years—a point of contention for many UK fishing communities, given that seafood exports now account for just 0.04% of GDP. The reset also lays the groundwork for future enhancements, including potential youth‑mobility schemes and mutual recognition of professional qualifications, but these require fresh negotiations.
While far from reversing the 4% GDP hit attributed to Brexit by the Office for Budget Responsibility, the deal signals a pragmatic step toward restoring closer economic ties with the EU, even as the UK pursues trade with the US, India and beyond.
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