Starmer makes late fishing concession to seal EU-UK deal

Britian PM Starmer

British and European Union negotiators reached a deal overnight to strengthen their relationship after the UK agreed to extend fishing rights until 2038, according to people familiar with the discussions and documents seen by Bloomberg.

The reciprocal rights give European fishing crews access to UK waters and could be politically risky for Prime Minister Keir Starmer, who faces an electoral threat from Nigel Farage’s Reform party. In return, the UK has unlocked agreements on food and agricultural standards to remove the vast majority of border checks with the EU, as well as on energy cooperation.

Starmer arrived at Lancaster House in London on Monday morning, where he is hosting European Commission President Ursula von der Leyen.

The Labour government has pledged to improve Britain’s anemic levels of growth and sees lower trade barriers with the EU as crucial for exporters. Some economists have calculated that closer alignment on trade could give Chancellor of the Exchequer Rachel Reeves a £10 billion ($13.4 billion) boost at the next budget.

However, fishing is a totemic issue in the UK despite making up just 0.04% of GDP, and Starmer’s deal risks reigniting tensions last seen during Brexit negotiations. “12 years access to British waters is three times longer than the govt wanted,” Conservative leader Kemi Badenoch wrote on X, referring to earlier reports of a four-year extension. “We’re becoming a rule-taker from Brussels once again.”

Farage, meanwhile, told Bloomberg News the fishing deal “will be the end of the industry.” On the other side of the debate, Stuart Rose — a veteran retail industry boss and Conservative peer who campaigned against Brexit — said it was “pathetic” that some Tories were calling the deal a British surrender.

“We shouldn’t be talking about what we’re giving up,” Rose told Times Radio. “We should be talking about opportunity, opportunity, opportunity.”

The negotiating teams settled on a text at around 2 a.m. European time on Monday and while the draft still needs to be approved by political leaders on both sides, no major objections are expected, the people said, asking not to be named discussing private talks.

The agreement includes three texts: a defense and security partnership, a joint statement on working together on geopolitical challenges such as Russia’s war in Ukraine and a “common understanding” on a range of other issues.

Alignment

In exchange for the longer-term fisheries arrangement, the EU dropped its request to time-limit an agreement on food standards. Instead, the two sides will work toward a “Common Sanitary and Phytosanitary Area” known as SPS, as well as an agreement on energy.

The UK will have to dynamically align with many relevant EU rules and accept the role of the European Court of Justice as the ultimate arbiter of the bloc’s laws.

The UK will also work toward joining the EU’s Erasmus+ student exchange program and a time-limited youth visa scheme, which “should provide a dedicated visa path and ensure that the overall number of participants is acceptable to both sides in a win for the EU,” according to one of the documents.

The EU will remove barriers to allow British visitors to use e-gates within the EU and will work to ease travel for artists, the same draft says.

Defense

As part of Monday’s defense and security pact, the EU and UK will establish a platform for the two sides to work together in various areas, including information sharing, maritime and space security. Crucially for Britain, the bloc commits to swiftly explore ways to allow UK access to EU joint procurement defense funds.

“The Security and Defence Partnership will be based on dialogue and consultation mechanisms to facilitate the exchange of information, as well as steering and oversight of its implementation,” the agreement says.

The collaboration will cover both regional and global issues, with the two sides also committed to working together to enhance military mobility, counter cyber threats, make their critical infrastructure more resilient and cooperate on economic security matters such as global steel overcapacity.

A joint statement reached in the early hours of Monday morning stretched to six pages, reiterating support for Ukraine’s war against Russia. It said the UK’s foreign and defense secretaries will hold policy dialogs with the EU High Representative every six months.

“We are committed to ensuring full accountability for war crimes and other serious crimes committed in connection with Russia’s war of aggression,” it said.

On migration, a key concern for Starmer amid the electoral threat of Reform UK, the statement said both sides recognize the need to work “with countries of origin and transit, and to prevent irregular Channel crossings.” Last week, the Prime Minister said his government was in talks with several countries that might receive failed asylum seekers.