- The UK and the European Commission agreed to link their carbon markets by aligning the UK ETS with the EU ETS.
- A new Common Sanitary and Phytosanitary (SPS) Area will ease trade in agri-food products, reducing border delays.
- Improved cooperation will strengthen maritime security and safety, including joint work on ship and port security and maritime cybersecurity.
At the UK-EU Summit on 19 May 2025, the United Kingdom and the European Commission agreed to enhance cooperation on maritime security and to link their carbon markets. This initiative aligns the UK Emissions Trading Scheme (UK ETS) with the EU Emissions Trading System (EU ETS), supporting shared carbon pricing while respecting UK sovereignty. It covers key sectors like electricity, industry, and international transport, and enables mutual benefits under each side’s Carbon Border Adjustment Mechanisms, overseen jointly.
Agreement on Common Sanitary and Phytosanitary Area
The UK and the European Commission have agreed to establish a Common Sanitary and Phytosanitary (SPS) Area to facilitate the smoother movement of agri-food products by reducing bureaucratic barriers and eliminating lengthy border delays. This new SPS agreement, without a time limit, will remove some routine checks on animal and plant products, enabling freer flow of goods between Great Britain and Northern Ireland, which could lower food prices and increase consumer choice.
Additionally, linking the UK and EU Emissions Trading Systems will strengthen the UK’s energy security and protect businesses from the EU’s upcoming carbon tax, which would have redirected £800 million to the EU budget. Together, these SPS and emissions trading initiatives are projected to contribute nearly £9 billion to the UK economy by 2040. The agreement also includes a tailored arrangement safeguarding British steel exports from new EU tariffs and regulations, saving the UK steel industry £25 million annually.
Collaboration on Maritime Safety and Security
The UK and the European Commission have committed to enhancing collaboration on various aspects of maritime security, including ship and port facility security in line with the International Ship and Port Facility Security Code, maritime cybersecurity, and the security of autonomous surface vessels. They also plan to work closely on International Maritime Organization (IMO) security initiatives and other relevant maritime topics.
In addition, both parties aim to deepen cooperation on maritime safety by improving accident reporting procedures and sharing investigation reports. This partnership will extend to intensified joint efforts within the IMO framework.
Industry Reactions to the UK-EU Agreement
Steve Parker, Director General of the British International Freight Association (BIFA), welcomed the announcement of closer cooperation on the Emissions Trading Systems but urged the government to adopt the most practical reporting solution for the UK. He described the Summit’s outcome as a significant advancement in the UK-EU trading relationship following a turbulent decade.
Richard Ballantyne, Chief Executive of the British Ports Association (BPA), which represents ports handling the majority of UK-EU trade, expressed support for the creation of a common SPS area that would reduce trade barriers. He acknowledged that while detailed arrangements still need to be agreed upon, the deal could serve as a foundation for a long-term partnership with the EU. Ballantyne also pointed out that many costly border control posts, built at over £120 million to manage checks that never fully materialized, may now become redundant, and called on the government to cover these costs and move past the issue.
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Source: SAFETY4SEA
