Washington DC [US], May 20: Britain agreed the most significant reset of defence and trade ties with the European Union since Brexit on Monday after U.S. President Donald Trump's upending of the global order pushed the two sides to move on from their acrimonious divorce.
Nearly nine years after it voted to leave the bloc, Britain reached a wide-ranging deal with the EU including a security and defence pact, fewer restrictions on British food exporters and visitors, and a contentious new fishing agreement.
Trump's tariffs, alongside warnings that Europe should do more to protect itself, forced governments around the world to rethink trade, defence and security ties, bringing British Prime Minister Keir Starmer closer to European leaders.
Starmer, who backed remaining in the EU in the Brexit referendum, also bet that offering benefits to Britons such as the use of faster e-gates at EU airports will drown out the cries of "betrayal" from Brexit campaigner Nigel Farage.
Flanked by EU Commission President Ursula von der Leyen and European Council President Antonio Costa at London's Lancaster House, Starmer said the deal marked "a new era in our relationship".
Von der Leyen said it sent a message: "At a time of global instability, and when our continent faces the greatest threat it has for generations, we in Europe stick together."
Britain said the reset with its biggest trading partner would reduce red tape for agricultural producers - making food cheaper - improve energy security and, by 2040, add nearly 9 billion pounds ($12.1 billion) to the economy, which is about 2.6 trillion pounds in size.
It is the third deal Britain has struck this month, after agreements with India and the U.S., and while it is unlikely to lead to an immediate economic boost, it could lift business confidence, drawing much-needed investment.
At the heart of the reset is a defence and security pact that will let Britain be part of any joint procurement and pave the way for British companies including BAE (BAES.L), opens new tab, Rolls-Royce (RR.L), opens new tab and Babcock (BAB.L), opens new tab to take part in a 150 billion euro ($167 billion) programme to rearm Europe.
Source: Fijian Broadcasting Corporation
