Overview

• The UK-EU ‘reset’ agreement aligns veterinary and plant health rules, expands passport e-gate entry for British tourists and introduces a youth experience scheme
• Bank of England Governor Andrew Bailey welcomed the deal but urged ministers to pursue deeper EU financial market integration to reduce non-tariff barriers
• Bailey warned that trade restrictions stemming from Brexit risk lowering productivity growth and said closer cooperation with the EU is essential
• He highlighted unsustainable trade imbalances driven by Chinese subsidies and advocated diversifying supply chains among partners that respect international law
• Critics in both the Conservative and Labour parties have labelled the pact ‘the worst of both worlds’, voicing concerns over lost regulatory autonomy