What is the so-called “Brexit reset”?

The so-called “Brexit reset” is the process by which the United Kingdom intends to adjust its relationship with the EU after leaving the bloc, without considering going back on the Brexit. The strategy is based on sector-specific agreements aimed at reducing operational barriers and facilitating trade in specific areas.

Discussions focus on areas such as agri-food trade, sanitary and phytosanitary controls, energy and some aspects of regulatory coordination. In practice, these agreements require a certain degree of regulatory alignment, which makes it necessary to have clear and stable rules for their implementation.

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EU Concerns about continuity

For the EU, the main risk of the process is not so much the content of the agreements as their possible reversal in the future. The experience of recent years has led Brussels to be cautious about possible changes in the political orientation of the United Kingdom after future elections.

In this context, the EU proposes to incorporate safeguard clauses that would oblige the other party to compensate the other party if a government decides to withdraw from the agreements unilaterally. These clauses seek to reduce the impact of eventual political changes, advocated by sectors critical of closer ties with the EU, such as those linked to Nigel Farage.

From the Community’s point of view, these provisions do not prevent the abandonment of an agreement, but they do introduce costs associated with such a decision, especially in sectors where the implementation of the agreements requires prior investments in controls, systems or infrastructure.

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Implications for European companies

For European companies exporting to the United Kingdom, the “Brexit reset” may lead to a reduction in red tape and trade frictions in certain sectors. However, the debate surrounding safeguard clauses highlights the fact that the stability of the regulatory framework remains a key element.

In this scenario, it is advisable that companies continue to incorporate political and regulatory risk into their commercial, contractual and logistical planning, while maintaining the necessary flexibility to adapt to possible changes in the conditions of access to the British market.