By Andrew MacAskill, Alistair Smout and William Schomberg
LONDON/WASHINGTON (Reuters) – Britain is edging towards a new defence agreement with the European Union that officials on both sides hope will help to improve post-Brexit ties following U.S. President Donald Trump’s upending of security and trade alliances.
Prime Minister Keir Starmer has been trying to reset ties with the EU since his centre-left Labour Party won last year’s national election, and his government has focused on security and defence first – an area of strength for Britain.
That could pave the way for closer cooperation elsewhere, but Starmer needs to avoid appearing to move too closely towards the 27-nation EU as his government is also seeking an improved economic deal with Washington to lower some U.S. import tariffs.
“In a world which seems increasingly unstable with an uncertain future, it is so good that we are working so closely together on so many issues: defence and security… but also on trade and the economy,” Starmer said at the start of talks with European Commission President Ursula von der Leyen, adding the reset would be of “huge benefit” to both sides.
Von der Leyen praised the “excellent cooperation” between Britain and the EU, and British and European officials are confident they will be able to strike a defence agreement at a planned summit next month.
Earlier, Germany’s ambassador to London, Miguel Berger, said the “very difficult geopolitical situation” made it all the more important that the EU and UK co-operate as much as possible, adding that agreement on a defence pact was expected.
The May summit will likely produce a communique setting out a timetable for negotiations on other areas where Britain and the EU could work together more closely, including energy, fish, food standards and youth mobility, Berger added at a UK Trade and Business Commission event.
GEOPOLITICAL FALLOUT
Britain, which left the EU in 2020 after a landmark 2016 referendum vote, is trying to navigate the geopolitical and economic fallout from Trump’s imposition of worldwide tariffs and questioning of U.S. security protections for allies.
A global slowdown caused by the uncertainty over tariffs could also hamper Starmer’s efforts to generate growth.
Seeking to improve UK-U.S. trade ties and secure a reduction on some U.S. tariffs, British finance minister Rachel Reeves is expected to meet U.S. Treasury Secretary Scott Bessent in Washington on Friday.
Reeves said on Thursday she was confident a U.S. trade deal could be done, despite differences between the countries.
Ministers have said Britain will not lower standards in sectors such as food or autos in pursuit of a deal with the U.S. but that it is open to seeking a reduction in trade barriers between the two sides.
As an example of the tightrope facing Britain, the U.S. could demand greater market access for those food producers which are already relatively aligned with UK standards, but London would not want to grant anything that either harms its own farmers or the prospects of greater UK-EU alignment on food.
Britain could also lower its tariffs on U.S. cars.
In Washington, Reeves also met EU finance ministers and called for greater defence co-operation on the sidelines of meetings of the International Monetary Fund and World Bank.
Britain is hoping to be able to access the EU’s new 150 billion euro rearmament fund, both to enable its companies like BAE to win contracts and to potentially do joint defence projects with EU countries.
Starmer said earlier this year that he hoped for closer ties in areas including improving military mobility and logistics, protection from sabotage, developing military technology and deepening industrial collaboration.
Nigel Farage, leader of the right-wing Reform party, told reporters on Thursday he was worried that a deal that involved military alignment and intelligence sharing could “fundamentally damage our relationship with NATO and America”.
(Reporting by Alistair Smout and Andrew MacAskill in London; additional reporting by William Schomberg in Washington, Elizabeth Piper in Dover and Muvija M in London; writing by Kate Holton; Editing by Kirsten Donovan and Gareth Jones)
