UK's post-Brexit hopes for easier EU trade face setback amid new talks

UK Prime Minister Keir Starmer.

Britain’s effort to ease trade with the European Union by securing a mutual recognition agreement on product standards has been rejected by Brussels, dashing Prime Minister Keir Starmer’s hopes of cutting red tape for UK businesses. EU diplomats said France led the opposition to the proposal, arguing such privileges were reserved for countries like Switzerland that contribute to the EU budget and accept free movement, the Financial Times reported.

Tough negotiations ahead of London summit

The disagreement marks the beginning of a new round of negotiations between Britain and the EU, with both sides aiming to finalise broader agreements by the end of the year. Starmer and European Commission President Ursula von der Leyen are preparing to announce a security and defence pact at a London summit on May 19, potentially granting Britain access to the EU’s new €150bn defence fund. To facilitate this deal, Britain is expected to agree to extend EU fishing rights in UK waters for several more years, deferring more contentious discussions until after the next general election.

Further areas of negotiation

Beyond defence and fishing, a separate summit communique is expected to outline a “common understanding” on broader cooperation covering youth mobility, energy security, and improved movement for Britons across Europe. The UK has made three key requests to Brussels: an agreement to combat illegal migration, better access for touring artists, and mutual recognition of industrial goods certification. However, EU diplomats have been cool to all three proposals.

Limits to UK's bargaining power

Brussels has made it clear that without the UK rejoining the single market or customs union, many trade barriers will remain. A returns agreement on illegal migration also appears unlikely due to political sensitivities in member states. Although Britain has discussed a potential migrant returns pact with France, EU officials are sceptical it could be expanded into a wider deal.

Meanwhile, while the UK seeks improved access for touring musicians, Brussels has previously warned that significant concessions would require levels of single market access that the UK has ruled out. Some modest measures, such as easier visa arrangements for artists and access to automated e-gates for British travellers, remain possible.

Cautious progress expected

Starmer’s envoy Michael Ellam has asked EU negotiators to delay finalising the summit document until after English local elections to avoid political fallout. Talks are expected to intensify through autumn, but the early rebuff highlights the complex reality Britain faces as it tries to reset relations with the bloc without fundamentally changing its post-Brexit position.