How to future-proof UK-EU dynamic alignment

The UK and EU announced in May 2025 that they would start negotiations to bring aspects of UK food and energy regulation back to EU-alignment. After a period of silence on the UK side, some details are now starting to filter out. Among these, recent headlines report that the UK will introduce legislation later this year to bring this about, likely as part of the King’s Speech in May. While the detail remains unknown, these reports suggest that the UK will use secondary legislation to keep up with new EU rules in relevant areas (otherwise known as ‘dynamic alignment’). Keir Starmer has defended using this light-touch approach to Parliamentary scrutiny where necessary to further the national interest. This blog argues that it will weaken the durability and legitimacy of closer EU relations. A more sustainable path would be to provide mechanisms for consultation and scrutiny, ensuring that EU alignment is not simply at the whim of ministers. Entrenching the post-Brexit executive consolidation of power Brexit proponents have long argued that following Brussels is undemocratic. However, even though Brexit formally restored the UK’s parliamentary sovereignty, what happened next was a reduction in UK Parliamentary scrutiny and a concentration of executive power. [...]

By |2026-04-17T14:19:17+01:0017 April 2026|Blog, International Trade, UK- EU|0 Comments
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Next steps for Europe-India trade

Long-term talk of deeper Europe-India trade ties is finally accelerating as the mutual value becomes more obvious. This results from common struggles with superpowers US and China, as well as the recognition that the world’s most populous country needs help with its growth and Europe wants to be part of that story. Nonetheless, UK and EU Free Trade Agreements with India are best seen as part of an ongoing process rather than the final outcome. These FTAs are shallow, and there are numerous headwinds such as very different views of the world. This means all governments concerned will need to work hard to see significant economic benefits. The UK-India FTA is expected to come into force this year, with the EU-India equivalent probably at least a year behind. In both cases, their conclusion is still ahead of hopes, since negotiations only really began in 2022, even if building on previously suspended efforts. For India, the economic slowdown during COVID-19 provided an impetus. For the EU and the UK, a large Indian market behind tariff walls was incentive enough. However, it was the turbulence of Trump’s tariffs that provided the extra push to the conclusion. Details of the EU-India FTA are [...]

By , |2026-03-06T15:08:57+00:006 March 2026|Blog, International Trade|0 Comments
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Alignment with limits and safeguards: EFRA’s key recommendations for a UK-EU SPS Agreement

The House of Commons Environment, Food and Rural Affairs Committee (EFRA) has recently published a report responding to the political commitment made at the May 2025 UK–EU Summit to negotiate a common sanitary and phytosanitary (SPS) area, with an ambition to conclude negotiations by early 2027. Entitled ‘UK–EU agritrade: making an SPS agreement work’, the report sets out recommendations aimed at ensuring that any future SPS framework is economically beneficial, constitutionally accountable and operationally workable. At its core, the report accepts the economic case for closer regulatory cooperation with the European Union. It recognises the potential benefits of reducing border friction, supporting supply chain resilience and strengthening food security. However, it does not endorse alignment without qualification. Rather, the Committee advances what might be described as an approach of alignment, with limits and safeguards: supporting the negotiation of a common SPS area while seeking targeted exemptions in sensitive areas; calling for robust parliamentary oversight; and insisting on mechanisms to ensure that UK scientific evidence and domestic policy choices are properly reflected in future regulatory developments. Crucially, as a precondition for achieving these safeguards, the Committee urges that the scope of the negotiations is clearly defined and published at an early [...]

By |2026-02-20T17:06:11+00:0020 February 2026|Blog, UK- EU|0 Comments
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Why does the India-EU FTA matter?

The India-EU Free Trade Agreement (FTA) hailed as the “mother of all deals” by both the EU and India, has been under negotiation since 2007. Since the text of the agreement is not available yet to fully verify this claim, it is worth evaluating what can be gleaned about the agreement from the documents released by both sides so far (the EU and India). The Highlights Goods The biggest immediate gain for both sides appear to be on goods, and both parties’ statements focus on these. The coverage appears significant. The FTA reduces tariffs on textiles, apparel, leather, footwear, chemicals, sports goods, toys, gems, and jewellery by India. For the EU, the gains lie in industrial goods, precision machinery, electrical equipment, aviation components, medical devices and other advanced tech. Beyond that, India reducing the high tariffs on cars (although subject to TRQ) is a significant win for the EU. Removing tariffs on chocolate and olive oil altogether, reducing tariffs on wine and spirits, and apples and pears is the cherry on top for the EU’s agriculture sector. Both sides targeted the low hanging fruits and pushed liberalisation of the more controversial goods for further down the road. Sensitive agricultural products [...]

By , |2026-02-18T14:27:39+00:0018 February 2026|Blog, International Trade|0 Comments
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The EU–US Trade Deal: A $750 billion commitment caught between supply security and climate strategy

On 27 July 2025, the European Union (EU) announced a trade deal with the United States (US), averting a potential 30% tariff escalation.[1] Failure to conclude negotiations risked a transatlantic economic relationship valued at $2 trillion annually, which is nearly 6% of global trade in goods and services.[2]  In addition to tariffs, there is also agreement on EU purchases of energy products, and to work together on economic security, access to critical energy and investment facilitation.  This blog examines some of the implications of this announcement, reflecting how it could shift the EU's key trade relationships in energy and influence its progress toward achieving climate goals. The terms of the deal The deal sets a 15% base tariff on most EU exports to the US, effectively halving the previously threatened tariff rate. The agreed 15% baseline tariff is understood to be applied on an inclusive basis and not as an additive layer to pre-existing rates. Both sides appear to have agreed on zero-for-zero tariffs for a number of strategic products. This includes all aircraft and component parts, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources, and critical raw materials. Officials also confirmed that work will continue to [...]

By , |2025-08-12T15:52:38+01:0012 August 2025|Blog, International Trade|0 Comments
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Trump’s trade deals: It’s not 1931, yet.

  The overall impact of Trump's actions may only represent a modest shock to the rest of the world, primarily because the US budget and trade balances are likely to widen due to the fiscal stance, which will boost US demand relative to output. However, there could be significantly different relative impacts on other countries. Ultimately, the final outcome will depend on whether the rest of the world magnifies or dampens these effects. The spate of recent “trade deals” done by the US does not stabilise the world trade system; rather, it creates ongoing uncertainty. It’s not like 1931 when the Smoot-Hawley tariffs dramatically increased tariffs on all suppliers across the board simultaneously as US aggregate demand was collapsing, sending a huge macro-economic shock across the world. The US was the world’s biggest importer, and other countries worsened the situation by raising protectionist barriers against one another, e.g. the UK Tariff Act of 1932. Even though the new Trump tariffs are nearly as high as those of the Smoot-Hawley Tariff Act, the US accounts for only about 15% of world imports. At the same time, Trump is cutting taxes (on the rich) in a manner that is very likely to [...]

By |2025-08-01T13:03:23+01:0030 July 2025|Blog, International Trade, UK- EU|0 Comments
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A few important steps forward: the UK-EU strategic partnership

The current UK Government is focused on delivering economic growth and positioning the UK as an important economic and diplomatic player internationally. The relationship with the EU is probably the most crucial bit in this jigsaw, and the deal struck on Monday, outlined in a “Common Understanding”, indicates the direction of travel: cautiously and selectively rebuilding closer relations with the EU along a number of dimensions, first and foremost on security and defence matters, but also including energy, environmental, and some economic aspects. We will discuss three particular areas that are related to trade in the ‘common understanding’: fisheries and trade in agri-food products, youth mobility, and cooperation on energy markets and carbon emissions, respectively.  We explain why the deal delivers in two out of three areas.  More could have been done, and with firmer commitments.  The document essentially represents a negotiating agenda with mostly aspirational language, whereby the two parties agree to “work towards” certain outcomes and everything has to be finally negotiated.  Yet every journey starts with a single step, and the one taken on Monday is a sensible step in the right direction. Fish and food: Significant departures from Brexit A core, perhaps the main, EU demand [...]

By , , , , |2025-05-21T18:45:18+01:0021 May 2025|Blog, International Trade, UK- EU|0 Comments
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Do labour and environmental provisions in trade agreements lead to better social and environmental outcomes in practice?

13 December 2023 James Harrison is Professor in the School of Law at the University of Warwick. Emily Lydgate is Professor in Environmental Law at the University of Sussex and Deputy Director of the UK Trade Policy Observatory (UKTPO).  Ioannis Papadakis is a researcher at the Centre for Inclusive Trade Policy (CITP) and a Research Fellow in Economics. Sunayana Sasmal currently serves as a Research Fellow in International Trade Law at the UKTPO. Mattia di Ubaldo is Fellow of the UKTPO and Research Fellow in Economics of European Trade Policies. L. Alan Winters is Founding Director of the UKTPO,  Co-Director of the CITP and Professor of Economics at the University of Sussex. In answering this important question, different disciplinary approaches have emerged as have a range of different and sometimes contradictory findings. At the moment, scholars from the different disciplines are not talking to each other about the implications of this. The authors of this blog suggest it is vitally important that they begin to do so.   Trade agreements around the world increasingly include environmental and labour provisions. Their presence attests to policymakers’ recognition that trade agreements cannot simply focus on economic issues. They should also address environmental and social [...]

By , , , , |2025-01-15T12:35:09+00:0013 December 2023|UK - Non EU, UK- EU|3 Comments
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Non-regression on environmental protection: Making sense of the REUL Bill

16 June 2023 Chloe Anthony, Doctoral Researcher at University of Sussex Law School and Legal Researcher for the UK Environmental Law Association’s Governance and Devolution Group. The Retained EU Law (Revocation and Reform) Bill is part of the Government’s ‘Brexit opportunities’ agenda. It is currently in its final stages in Parliament, going back and forth between the Houses, in a debate on the inclusion of clauses that aim to safeguard parliamentary scrutiny and prevent the lowering of environmental protections. It returns to the Commons on 20 June. […]

By |2025-01-29T15:26:15+00:0016 June 2023|Blog, UK- EU|1 Comment
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Driving round the bend: Rules of origin and cars

8 June 2023 Michael Gasiorek is Director of the UK Trade Policy Observatory and Co-Director of the Centre for Inclusive Trade Policy. He is Professor of Economics at the University of Sussex Business School. Peter Holmes is a Fellow of the UK Trade Policy Observatory and Emeritus Reader in Economics at the University of Sussex Business School. Manuel Tong Koecklin is a Research Fellow in the Economics of Trade at the UK Trade Policy Observatory and University of Sussex Business School. Recently, there have been a series of reports in the media focussing on the challenges that electric vehicle (EV) manufacturers are likely to face, from the end of this year, in exporting electric vehicles tariff-free to the EU. The concern it because of the changes in the rules of origin (ROOs) requirements (for EVs and batteries) which will become more difficult from January 2024, and again from 2027 and 2028 onwards. […]

By , , |2025-01-29T15:27:05+00:008 June 2023|UK- EU|1 Comment
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