The European Union and the U.K. are set to announce trade deals

Summary

Marketplace Morning Report Summary Episode: The European Union and the U.K. are set to announce trade deals
Release Date: May 19, 2025

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Introduction

In this episode of the Marketplace Morning Report, host Stephen Ryan delves into the imminent trade agreements between the European Union (EU) and the United Kingdom (U.K.) post-Brexit. The discussion highlights the potential impacts on businesses, economic strategies, and global markets, complemented by a poignant segment on food insecurity within Indigenous communities in Canada.

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EU-U.K. Trade Deal Announcements

Timestamp: [01:02]

Stephen Ryan opens the discussion by outlining the upcoming announcements from the EU and U.K. regarding eased trade relations. Britain's Prime Minister, Keir Starmer, is poised to reveal a revised post-Brexit framework aimed at revitalizing economic ties.

Key Points:

• Defense and Security Partnership: Ursa von der Leyen, President of the European Commission, emphasized that a new defense and security alliance is the summit's cornerstone. This partnership seeks to reduce export checks, align certain EU regulations, and establish a role for the European Court of Justice.

• Youth Mobility Scheme: The EU has proposed a youth mobility initiative targeting individuals aged 18 to 30. While the specifics remain under wraps, the scheme aims to address labor shortages in various sectors.

• Fishing Rights: Extending fishing rights for EU vessels in U.K. waters was a focal point, reflecting the sensitive and emotional nature of this sector despite its minimal contribution (0.03%) to the U.K. economy.

Notable Quote:

“The EU has also sought to extend post Brexit fishing rights for its vessels in UK waters, which was the focus of the final talks.” – BBC's Henry Zeffman ([01:33])

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Impact on Small Businesses

Timestamp: [02:07]

Stephen Ryan introduces Simon Sparel, founder of the Cheshire Cheese Company and director at Hartington Creamery, to discuss the trade deal's implications for small businesses.

Key Points:

• Export Challenges: Sparel recounts the difficulties faced in exporting food products post-Brexit, citing increased health checks that rendered the business model commercially unviable.

• Financial Strain: The added costs of compliance were unsustainable for small enterprises unable to absorb the financial burden.

Notable Quote:

“We had to change the way we exported foods and we had to have health checks, which involved a veterinary surgeon checking off every consignment that immediately made us commercially unviable as small businesses.” – Simon Sparel ([02:07])

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Economic Analysis with Vicky Price

Timestamp: [02:25]

Vicky Price, Chief Economic Adviser at the Centre for Economic and Business Research, provides an in-depth analysis of the economic underpinnings of the EU-U.K. negotiations.

Key Points:

• Strengthening Economic Relations: Price underscores the necessity of improving U.K.-EU relations to foster economic growth, highlighting that the current strained relationship post-Brexit hampers the U.K. economy.

• Food and Agriculture Standards: Aligning standards across the U.K. and EU is crucial to reduce bureaucratic delays in food exports and imports, thereby boosting trade efficiency.

• Youth Mobility and Labor Shortages: The proposed youth mobility scheme addresses significant labor shortages by potentially increasing the influx of young workers, although political concerns about immigration numbers remain.

• Defense Sector Growth: The agreement aims to enhance the U.K.'s role in European defense procurement, promoting stronger domestic industries and collaborative development within Europe.

Notable Quotes:

“The important thing is to get the relationship with the EU working better, because it's clearly not been particularly helpful since Brexit for the UK economy.” – Vicky Price ([02:37])

“We are seeing the need to rearm, if you like, in Europe and not rely so much on the US in the future.” – Vicky Price ([04:10])

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Global Market Updates

Timestamp: [04:38]

Stephen Ryan transitions to global market figures, presenting key economic indicators from China and Europe.

Key Points:

• China's Economic Growth: Industrial output in China grew by 6.1% in April, signaling a slowdown from March. Retail sales also decelerated to a 5.1% increase, falling short of expectations.

• Ryanair's Financial Moves: Europe's largest airline, Ryanair, announced fare hikes amid a 16% decline in annual profits after tax, reflecting broader economic pressures.

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Indigenous Food Insecurity in Canada

Timestamp: [05:07]

The report shifts focus to Canada, where Megan Lawton from the BBC covers the critical issue of food insecurity among Indigenous populations.

Key Points:

• Economic Hardships: Surveys indicate that approximately half of Canada’s 2 million Indigenous people struggle to afford basic necessities, including food.

• Health Implications: Dr. Hayden King highlights the disproportionate rates of diabetes, obesity, and other chronic conditions among Indigenous communities, attributing these to historical and ongoing dislocations from traditional food sources.

• Historical Context: The legacy of the 1876 Indian Act, which imposed restrictive measures on Indigenous farmers, continues to impact their economic and social well-being.

• Community Initiatives: Indigenous farmer Dixon Turbasket is spearheading efforts to combat food insecurity by establishing a community farm and garden, focusing on food sovereignty and sustainable agriculture.

Notable Quotes:

“It means she often avoids fresh food.” – Rima Grais ([05:20])

“I'm going to have something to eat, my kids are going to have some, you're going to have some, you're going to have. She's going to have something to eat. That's security here.” – Dixon Turbasket ([06:47])

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Conclusion

The episode provides a comprehensive overview of the evolving trade dynamics between the EU and the U.K., the ramifications for small businesses, and broader economic trends affecting global markets. Additionally, it sheds light on the pressing issue of food insecurity in Indigenous communities in Canada, emphasizing the need for sustained efforts towards food sovereignty and economic equality.

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Credits:
Producer: Craig Henderson
Editor: Naomi Rainey
Host: Stephen Ryan
Reporting: BBC World Service

Transcript

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[Stephen Ryan]

They're talking again. The European Union and the United Kingdom are set to announce deals to ease trade. Live from the BBC World Service, this is the Marketplace Morning Report. I'm Stephen Ryan. It's Mr. Stefano in for Liana Byrne. Hello there. Britain's Prime Minister, Keir Starmer is set to announce a reset in post Brexit relations with the eu. Ursa von der Leyen, president of the European Commission, has just arrived at a London summit after a breakthrough in talks that have been looking at defence, trade and fishing rights. The BBC's Henry Zeffman has the details.

[BBC Correspondent]

A new defence and security partnership is expected to be the centrepiece of today's summit. An effort to reduce checks for businesses exporting to the continent will mean alignment with some EU rules and a role for the European Court of Justice. There will be a commitment to pursue a youth mobility scheme, but it's unclear how detailed that will be at this stage. The EU has also sought to extend post Brexit fishing rights for its vessels in UK waters, which was the focus of the final talks.

[Stephen Ryan]

So what could it mean for small companies? Simon Sparel is founder of the Cheshire Cheese Company and director at Hartington Creamery in the north of England.

[Simon Sparel]

We had to change the way we exported foods and we had to have health checks, which involved a veterinary surgeon checking off every consignment that immediately made us commercially unviable as small businesses. Because we couldn't bury that cost, we couldn't actually absorb that.

[Stephen Ryan]

Vicky Price is Chief Economic Adviser at the Centre for Economic and Business Research. Previously she was the Joint Chief of the UK Government Economic Service she told me about the key economic issues behind the talks.

[Vicky Price]

Well, the important thing is to get the relationship with the EU working better, because it's clearly not been particularly helpful since Brexit for the UK economy. And if it's growth that this government wants to achieve, then that's one way of doing it.

[Stephen Ryan]

And what could free your trade around food and agriculture products, which are one of the big areas mean for British exporters, do you think?

[Vicky Price]

Well, it's interesting, of course. An awful lot of what's been going on right now has concentrated on fish, which is rather small. It accounts for only 0.03% of the UK economy, but nevertheless, it seems to be quite an emotional area. But otherwise, I mean, the really important thing on the food side is to get the standards accepted across the UK and the EU region so that we can reduce some of the bureaucracy that exists right now, which has resulted in food exports being either delayed quite significantly and imports at times or in fact just being cut back. So what we're getting basically is the beginning, if you like, of much closer cooperation across the UK and the EU region.

[Stephen Ryan]

You talked about people. The EU has suggested a youth mobility scheme for 18 to 30 year olds. What are the economic considerations around something like that?

[Vicky Price]

I think from the UK's perspective just now, we have quite a shortage in all sorts of occupations. We've had to import loads of people from other parts of the world to make up for the loss of EU workers. What there is, of course, politically is a concern about what it will do to the numbers if indeed loads of young people want to come in, hence why we're talking about quotas.

[Stephen Ryan]

And Vicky, its defence is a major sector in the UK economy. What are they looking at in this deal?

[Vicky Price]

We are seeing the need to rearm, if you like, in Europe and not rely so much on the US in the future. The UK wants to participate in the whole procurement process. Strong industries here which can benefit from this but also contribute and participate in the development that will take place in Europe. It's a win win as far as the UK is concern.

[Stephen Ryan]

Vicky Price, Chief Economic Advisor at the Centre for Economic and Business Research. Thank you.

[Vicky Price]

Thank you.

[Stephen Ryan]

Let's do the numbers. Figures from China showed industrial output growth of 6.1% in April, slowing for March. Retail sales growth slowed to 5.1%, missing expectations. And Europe's biggest airline, Ryanair, plans to hike fares. Its annual profits after tax fell 16% to Canada, home to 2 million Indigenous people. But around half, according to a recent survey, say they struggle to Afford basics, including food. The BBC's Megan Lawton has from British Columbia.

[Megan Lawton]

On a winding road between snow capped mountains sits Coren, population 1000. But living rurally has its challenges too.

[Rima Grais]

I would say honestly, it's about thousand dollars I spend on food a month.

[Megan Lawton]

Yeah, that's the equivalent of more than US$700 for single mom Raven. It means she often avoids fresh food.

[Rima Grais]

It's pretty pricey. The good healthy food is very, very expensive. You got to be rich to be eating good.

[Megan Lawton]

The knock on impact higher levels of chronic health conditions, explains Dr. Hayden King from Indigenous Led Research center, the Yellowhead Institute.

[Dr. Hayden King]

Diabetes, obesity, health, disease. I mean these are impacting indigenous people at disproportionate rates compared to non indigenous people. And a lot of that is owed to this dislocation from our food sources and dispossession of the land.

[Megan Lawton]

He's talking about the impact of a Canadian federal law introduced in 1876 called the Indian Act. It required Indigenous farmers to obtain permits to sell their produce.

[Dr. Hayden King]

The Indian act handicapped their efforts because those indigenous people were producing too much and competing with non indigenous farmers who saw that competition as impacting their own businesses.

[Megan Lawton]

The Canadian government has taken steps to address inequalities within the Indian act, most recently in 2023.

[Dr. Hayden King]

Indigenous people are still grappling with the legacy of colonization and ongoing colonization, to be frank.

[Megan Lawton]

A short drive from Causton, Indigenous farmer Dixon Turbasket is hoping to help food insecurity in his area by launching a community farm and garden.

[Dixon Turbasket]

That's the main thing is, but creating food security. Food security means that I'm going to have something to eat, my kids are going to have some, you're going to have some, you're going to have. She's going to have something to eat. That's security here.

[Megan Lawton]

He grows everything from apples to corn. But getting funding has been a challenge. As Hannah Field, the farm's food Hub coordinator, explains, the funding pots are getting smaller. In a lot of cases there's more grants coming up, but they're getting more competitive. So that's a huge issue. The Canadian government has said it will work with Indigenous communities to increase food security and support food sovereignty and says it's made funding available for projects in British Columbia.

[Dixon Turbasket]

This is our seed crop right here. So we're going to decide how much we're going to plant.

[Megan Lawton]

One goal of this farm is to grow the ingredients to make lasting dry goods.

[Dixon Turbasket]

So yeah, we, we want to make tacos.

[Megan Lawton]

And is there a benefit? I guess in a really rural area like this in making a product like tortillas, which are more likely to keep for longer. Is that a part of.

[Dixon Turbasket]

Well, hopefully that that'd be one of the things it stores. We could eat that. There's quite a few meals in there.

[Megan Lawton]

Across Canada, Indigenous communities are tackling food insecurity. But food sovereignty, where they have control over what they grow and eat, remains a work in progress. From British Columbia in Canada, I'm the BBC's Megan Lawton for Marketplace.

[Stephen Ryan]

Our producer is Craig Henderson. Our editor is Naomi Rainey. I'm Stephen ryan. This is Mr. Stefan Arian. Thanks for listening to the Marketplace morning report from the BBC World Service.

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