• The U.K.-EU deal will make it easier for British food and drink to be imported and exported as it reduces red tape for businesses.
• The two sides also agreed on a new partnership paving the way for the U.K. defense industry to participate in the EU's proposed new £150 billion ($200 billion) defense fund.
• This new deal also extends fishing rights for EU trawlers in U.K. waters until 2038 and British holidaymakers will be allowed to use more "eGates" in EU airports.

The U.K. and European Union announced a landmark deal to reset relations Monday after Britain's acrimonious exit from the bloc in 2020.

British officials said the signing of the agreement — which covers a range of matters including security, energy, trade, travel and fisheries — with EU officials in London marked a "historic day" for the two sides, and a "new chapter" in their relationship after years of tense post-Brexit relations.

Sausages, defense and airport eGates

Here are some key takeaways from the deal and how it will affect British consumers and businesses:

Firstly, the deal will make it easier for British food and drink to be imported and exported as it reduces red tape for businesses which have led to lengthy lorry queues at the border. Some routine checks on animal and plant products will also be removed completely, allowing products like British sausages and burgers to be sold back into the EU again.

When it comes to security and defense, the U.K. and EU agreed on a new partnership paving the way for the U.K. defense industry to participate in the EU's proposed new £150 billion ($200 billion) "Security Action for Europe" defense fund.

Fisheries was a big (and thorny) part of the talks ahead of the summit. This new deal extends fishing rights for EU trawlers in U.K. waters until 2038, an agreement particularly coveted by Brussels as an existing deal was due to expire next year.

British holidaymakers will be cheering at least one aspect of the deal, which will enable them to use more "eGates" in EU airports rather than having to have their passports physically checked when they travel to the continent. That agreement should end what the government described as "the dreaded queues at border control."

Some issues are not entirely resolved, however, including a "youth experience scheme." Both sides said they would work toward a deal that would make it easier for young people to live and work across the continent.

The program will be designed to enable young people to work and travel freely in Europe again, but will be capped and time-limited, mirroring existing schemes the U.K. has with countries such as Australia and New Zealand.

Reform UK's popularity looms large

U.K. Prime Minister Keir Starmer hosted European Commission President Ursula von der Leyen and other senior officials in London for the much-anticipated U.K.-EU summit on Monday.

Both sides praised the rapprochement reached at the gathering, which took place against a backdrop of unpredictable global dynamics and changing alliances.

European Commission President Ursula von der Leyen said at a press conference following the summit that the deal was "historic" and "the message we're sending to the world today is ... that we in Europe stick together."

European Council President António Costa echoed that sentiment, stating that the agreements "mark not just progress but ... the start of a renewed and strengthened strategic partnership" on trade, migration and security.

Starmer said the deal was a "win-win" for both sides. "Britain is back on the world stage, working with our partners, doing deals that will grow our economy and putting more money in the pockets of working people," he remarked.

The Trump administration's recent shift toward U.S. isolationism regarding global affairs — and particularly those more acutely affecting Europe, such as the war in Ukraine — piled pressure on the U.K. and European Union to agree on a deal.

But the U.K. government is also in a tricky position given the increased public support for Reform UK, the party belonging to Brexit architect, Nigel Farage.

Starmer's popularity has fallen to its lowest level on record, with just 23% of Brits polled having a favorable view of the prime minister, , while positivity toward Farage and Reform UK has risen.

A fishy stumbling block

One of the biggest stumbling blocks leading up to the U.K.-EU summit was access that EU boats have to fish in U.K. waters, with a post-Brexit deal on fishing rights set to expire in 2026 and France and Denmark pushing for those rights to be extended.

The problem for the Labour government was how to agree on thorny issues like this, without looking like it's returning to a pre-Brexit partnership.

It insisted on Monday that it had not rowed back on Brexit, saying the deal "meets the red lines set out in the government's manifesto – no return to the single market, no return to the customs union, and no return to freedom of movement."

But critics of the deal, including Farage and Conservative Party leader Kemi Badenoch, reacted with dismay as details of the deal emerged earlier on Monday morning, with the latter saying: "We're becoming a rule-taker from Brussels once again."