UK Prime Minister Keir Starmer has announced a significant agreement with the EU that sets the stage for closer collaboration with the bloc.
Nearly nine years after the United Kingdom voted to leave the European Union, the new deal includes a new security and defence pact, fewer restrictions on British food exporters and visitors, and a new fishing agreement.
The reset with the UK’s biggest trading partner is aimed at reducing red tape for agricultural producers, lowering food prices, improving energy security, and adding nearly 9 billion pounds ($12.1bn) to the economy by 2040.
While Starmer sees the deal as a positive outcome, criticism has come from the opposition Conservative Party, labeling the UK as a “rule-taker” from Brussels.
Nigel Farage, leader of the hard-right, pro-Brexit Reform UK party, called the deal an “abject surrender”.
What are the terms of the deal?
The UK and EU will collaborate more closely on information sharing, maritime issues, and cybersecurity under the new defence-and-security agreement.
The bloc has committed to exploring ways for the UK to access EU procurement defence funds, allowing British weapons manufacturers to participate in a programme to rearm Europe.
Both sides have agreed to work on a joint agrifood agreement to eliminate trade barriers established during Brexit, with the aim of boosting food and drink exports to the EU.
In return, the UK will align with EU food standards and accept the oversight of the European Court of Justice in this area.
The deal also includes provisions for the UK’s participation in the Erasmus student exchange programme, access to the EU for young people through work and travel, and ease of travel for Britons in EU airports.
Additionally, EU fishers will have access to British waters for an additional 12 years, a concession from the UK that has drawn criticism.
Does this amount to backtracking on Brexit?
Critics argue that the deal represents a betrayal of Brexit, particularly concerning the fisheries agreement and submission to EU jurisdiction on agrifood policies.
Opposition politicians and industry representatives have expressed concerns about the impact of the deal on British fishing waters and economy.
Despite criticism, Starmer has maintained his stance on not re-joining the European single market or customs union.
What were the costs of Brexit?
Brexit is expected to shrink trade flows by 15 percent and lower GDP by 4 percent in the long term, resulting in significant economic costs for the UK.
The decision to leave the EU has led to trade barriers with Europe and business uncertainty, impacting business investment and economic growth.
While the UK has signed trade agreements with India and the US, Brexit has not delivered the anticipated economic benefits as promised by its advocates.
In recent years, public support for Brexit has declined, with a majority believing that leaving the EU has negatively impacted Britain’s economy.
Are the economic benefits from the new agreement?
The Labour government aims to improve Britain’s economic growth through the new agreement with the EU, which includes measures to enhance trade, collaboration, and economic stability.
Ia melihat penghalang perdagangan yang lebih rendah dengan UE sebagai krusial bagi tujuan tersebut.
Menyadari kerusakan yang ditimbulkan pada perdagangan Britania oleh Brexit, Starmer mengatakan kesepakatan untuk menghapus pembatasan pada makanan akan memberikan dorongan 9 miliar pound ($12 miliar) kepada ekonomi Inggris pada tahun 2040.
Dalam sebuah briefing pemerintah, Downing Street mengatakan akan memperbaiki penurunan 21 persen dalam ekspor dan penurunan 7 persen dalam impor yang terjadi sejak Brexit.
Namun, 9 miliar pound ($12 miliar) akan menjadi hanya 0,2 persen dari output nasional Inggris. Oleh karena itu, kesepakatan minggu ini hanya berhasil membongkar sebagian kecil dari penghalang perdagangan yang didirikan pasca-Brexit.
“Kesepakatan kemarin mungkin akan meningkatkan pertumbuhan,” kata Ganguly kepada Al Jazeera. “Tapi ekonomi Inggris terus kesulitan dari kelemahan struktural, termasuk produktivitas rendah dan ruang fiskal yang terbatas.”
Pusat Reformasi Eropa, sebuah lembaga pemikir berbasis di London, baru-baru ini menghitung bahwa reset UK-UE akan meningkatkan PDB Britania Raya sebesar 0,3 persen hingga 0,7 persen.
Ganguly mengatakan dia “tidak cenderung mengubah perkiraan saya dalam jangka pendek”, menambahkan “Selain itu, jelas bahwa kesepakatan kemarin tidak akan sepenuhnya membalikkan dampak ekonomi dari Brexit.”
Akibatnya adalah Ganguly mengharapkan pertumbuhan PDB yang moderat sekitar 1-2 persen antara sekarang dan siklus pemilihan berikutnya, pada tahun 2029.