The Prime Minister’s Office of the UK has announced that the UK and the EU have reached a new deal aimed at setting out post-Brexit relations following extensive negotiations over the last six months. The deal will support UK businesses and jobs, the Prime Minister’s Office said.
In addition, the UK’s steel exports will be protected from the new EU rules and restrictive tariffs, through a bespoke arrangement for the UK, resulting in £25 million savings per year for UK steel exporters. Around 75 percent of UK steel exports go to the EU, a market worth nearly £3 billion.
Meanwhile, closer co-operation on emissions through linking the respective UK and the EU Emissions Trading Systems will improve the UK’s energy security and prevent businesses being hit by the EU’s carbon tax due to come in next year.
“It’s time to look forward. To move on from the stale old debates and political fights to find common sense, practical solutions which get the best for the British people,” Keir Starmer, the UK prime minister, commented.
Gareth Stace, director general of the UK-based trade association UK Steel, said, “UK Steel welcomes the formalized plan to link the UK and EU Emissions Trading Schemes and new, improved market access. This will be a significant step in reducing trade frictions in steel with the EU, our biggest export market, by ensuring equivalent carbon costs and easier exports. It also eliminates the risk of costs from the EU Carbon Border Adjustment Mechanism, where the burden particularly falls on SMEs. Crucially, linking the schemes lowers costs for the sector and provides long-term security, particularly if UK ETS prices were to exceed those in the EU in the years ahead, making linkage all the more important for competitiveness.”