Opportunities for collaboration are anchored in a long-term plan for growth through the UK’s modern Industrial and Trade Strategy, announced in June.
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The economic relationship between the UK and Europe has remained mutually vital throughout the fluctuations of the last decade. In the 12 months to September 2025, total UK–EU trade reached £860 billion, accounting for nearly half of the UK’s total trade.
UK exports to the EU alone were worth £388 billion (ONS Balance of Payments July to September 2025), making Europe the UK’s single largest export destination.
According to Ceri Morgan, His Majesty’s Trade Commissioner for Europe: “The European Union is the UK’s top export destination, with eight of our top ten export markets in Europe.”
These figures reflect the geography, supply chains and shared commercial interests that still bind the UK and Europe closely together. The UK’s trade reset is about making that relationship work better for businesses.
Deepening ties with Europe
The UK Government’s approach to Europe is firmly rooted in economic pragmatism and guided by a commitment to stability and a respect for the rule of law.
The emphasis is on reducing trade friction where possible, strengthening cooperation and creating new opportunities on both sides of the Channel.
As Ceri Morgan puts it: “Economic growth is the UK Government's central mission, and partnership with business is at the heart of how we achieve that.”
This focus on partnership reflects a broader shift in tone – one that European businesses are already recognising.
A central feature of this strategy is a renewed emphasis on strong bilateral relationships with key European partners. Recent agreements with France, Germany and Spain are designed to translate political goodwill into tangible commercial opportunities.
The Industrial Strategy Partnership between the UK and France of July 2025 strengthens cooperation in key sectors – including tech, clean energy and advanced manufacturing – and builds on previous agreements to collaborate on policy covering supply chains, economic security, decarbonisation, support for SMEs and more.
The Kensington Treaty, signed with Germany in July 2025, provides a framework for deeper collaboration on trade, security and technology, with upcoming business forums set to help companies connect across borders.
Meanwhile, a strategic framework between Spain and the UK was agreed in September 2025 to promote sustainable growth and enhance international security. It also expresses a commitment to tackling climate change, global health crises and social inequality.
Alongside these individual agreements, the UK and Europe also signed a historic clean energy pact (the Hamburg Declaration) in January 2026 that will see 100GW of joint offshore wind projects created in shared waters (gov.uk/government/news/uk-and-europe-sign-historic-pact-to-drive-clean-energy-future).
Together, these frameworks send a clear signal – the UK is not stepping back from Europe, but seeking closer engagement for mutual benefit.
A gateway for trade and investment
Trade flows tell only part of the story. Investment links between the UK and Europe remain among the strongest in the world.
At the end of 2024, UK companies held £782 billion of investment stock in Europe, while European investors held £966 billion in the UK. These two-way flows reflect the UK’s role as both a destination for European investment and as a launchpad for global growth.
This is reinforced by broader economic signals. UK GDP growth in 2025 ranked among the strongest in the G7, while international investors continue to back the UK as a safe and attractive place to do business.
Looking ahead: cooperation in a changing world
In addition to strategic decisions and international agreements, the trade reset is also about practical delivery. UK government support is increasingly focused on helping businesses grow, at home and abroad.
A key part of this is UK Export Finance, the UK’s official export credit agency. UKEF is designed to help buyers and suppliers reduce risk, access finance and deliver projects more smoothly, by providing guarantees, loans and insurance.
The UK’s evolving partnership with Europe is taking place against a backdrop of global volatility. Geopolitical tension and supply-chain disruption are shaping the ways in which countries and companies think about international trade. The best way to protect European industries from unfair global competition is to combine the weight of the UK and EU markets.
The UK is considered a reliable, rules-based partner, committed to cooperation across borders. It continues to support reform of the World Trade Organization and to promote international trading systems that are both stable and fair.
The recent agreements noted above are intended to signal that the UK sees cooperation with Europe as a framework that is strengthened by predictability, partnership and shared growth.
“My team works across 34 countries to deliver a thriving trade and investment relationship between the UK and Europe,” says Morgan. “The UK is ready to work with you as a launchpad for growth.”