On 19 May 2025, the British Prime Minister, Keir Starmer, announced a significant breakthrough in the United Kingdom’s post-Brexit journey: a new strategic partnership agreement with the European Union. This deal, described by both sides as a “reset”, aims to reduce trade friction, enhance regulatory cooperation, improve labour mobility and restore investor confidence across borders. For Spanish businesses operating in the UK or seeking to enter the market, this agreement opens a window of renewed opportunity.
One of the most immediate and tangible benefits of the new UK–EU agreement is the simplification of trade procedures. Customs processes, long viewed as a persistent post-Brexit pain point, are now being streamlined in a way that brings much-needed certainty and efficiency. While the deal doesn’t restore full single market access, it significantly reduces bureaucratic hurdles and improves predictability for both importers and exporters.
A crucial element is the introduction of a Sanitary and Phytosanitary (SPS) agreement, which simplifies the movement of food and agricultural goods between the UK and the EU. For Spanish exporters of wine, fresh produce, cured meats and other iconic food products, this is a welcome relief. The removal of excessive red tape not only lowers costs but also improves delivery timelines— two factors essential for maintaining competitiveness in the British market. Notably, this SPS agreement is not time-limited, offering businesses a rare sense of long-term stability in an otherwise volatile trading environment.
That said, regulatory divergence remains a part of the post-Brexit landscape. Although the new agreement does not include mutual recognition of conformity assessments, recent discussions suggest that the UK will need to align closely with EU standards in many sectors to preserve the deal’s functionality. For Spanish companies in tightly regulated sectors such as agri-food, cosmetics, pharmaceuticals and medical devices, dual compliance requirements remain.
Sectoral Impacts
Labour Mobility
The proposed youth mobility scheme would enable young people from both the UK and EU to live and work across borders more easily. For Spanish businesses grappling with labour shortages or seeking to diversify their workforce, this proposal could help alleviate recruitment challenges. It also presents an opportunity to attract young European talent for internships, placements, and entry-level roles, bringing fresh perspectives and supporting long-term workforce development. While the scheme is expected to be capped and time-limited, it is nonetheless a step in the right direction— particularly for companies in sectors like hospitality, healthcare, and agriculture that rely on flexible, seasonal staffing.
Defence and Security
A notable expansion of the partnership includes the establishment of a formal UK–EU defence and security pact. Officials from both sides will meet biannually to coordinate on foreign policy, sanctions, and strategic planning, including the development of a joint space security policy. Furthermore, the agreement paves the way for UK-based arms firms to access the €150 billion Security Action for Europe (SAFE) fund, which could encourage greater EU-UK defence industry integration, benefiting Spanish firms with operations or partnerships in the UK defence sector.
Fishing
The agreement preserves the current fishing access status quo until 2038, offering long-term certainty for Spanish fishing operators active in UK waters. The arrangement builds on the 2020 Brexit deal, which originally granted the UK a gradual 25% quota increase. Spanish fleets will retain licensed access to British waters under agreed annual quotas set alongside the UK and Norway. Additionally, a new £360 million Fishing and Coastal Growth Fund will support innovation in fishing technologies and equipment, potentially opening avenues for collaboration and investment among Spanish maritime suppliers and coastal communities.
Farming Exports
In a strategic trade-off, the UK secured improved terms on food exports to the EU in return for extended fishing access. This includes the elimination of most routine border checks on animal and plant shipments. For Spanish agricultural exporters, this easing of restrictions improves reciprocal access, streamlines documentation and helps preserve freshness in deliveries. However, the UK must adhere to EU-aligned standards to maintain this privilege, meaning Spanish businesses can count on regulatory consistency across agricultural and food safety frameworks.
Passport E-Gates and Travel
British travellers will be eligible to use e-gates at various European airports as the EU rolls out its new digital border system starting in October 2025. Although implementation will be at the discretion of individual member states, Spain is expected to follow suit given its significant tourism ties with the UK. Smoother travel procedures will also enhance business mobility, support short-term assignments, and facilitate attendance at conferences. New measures easing pet travel may further benefit both the tourism and pet export sectors.
Carbon and Energy
In terms of sustainability, the UK and EU have agreed to link their carbon markets to prevent carbon leakage and avoid tariffs on high-emission goods like steel and cement. This alignment is expected to save British firms up to £800 million in carbon taxes, shielding them from EU tariffs while promoting a level playing field. Spanish companies in heavy industry, green tech, and energy could benefit from increased investment certainty and simplified cross-border energy trade. Negotiations are also starting on UK participation in the EU’s shared electricity market, potentially enhancing energy price stability and grid resilience across the region.
The new UK–EU deal is more than a symbolic political gesture—it represents a tangible step forward in rebuilding economic trust between the UK and its European neighbours. For Spanish companies, the implications are both promising and complex. On one hand, we now see improved customs processes, reduced red tape, enhanced access to markets, and renewed openness to investment and labour mobility. On the other hand, regulatory burdens and market fragmentation persist, particularly for companies in highly regulated industries such as agri-food, pharmaceuticals, finance, and cosmetics.
The 2025 UK–EU agreement offers more than just a policy shift; it’s a chance to rebuild trust and reinvigorate cross-border collaboration. By strengthening the cultural and economic bonds between Spain and the UK, it gives companies a valuable platform for recruiting and developing binational teams.
Blog post written by Desirée Odulaja
