The much-awaited UK-EU leaders' summit has been delayed again, following yesterday's news that Sir Keir Starmer is resigning as prime minister.
In positive news for British businesses, Mexican ratification of the UK’s membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has now gone live, meaning that UK exporters to Mexico can benefit from lower tariffs and smoother trade.
UK-EU reset summit delayed
Following Starmer’s announcement yesterday that he would step down as prime minister, the next UK-EU leaders' summit looks to have been delayed.
A Cabinet Office email confirmed the summit would not take place on 22 July, following the resignation of prime minister Sir Keir Starmer.
“We will continue to discuss options with the EU for the summit to take place at the next earliest opportunity.”
The EU said that they were ‘re-assessing’ the date.
“We are reassessing with European Council President António Costa and the UK the opportunity of still holding the summit, as had been announced last week, and we will take it from there,” European Commission chief spokesperson Paula Pinho told a press briefing in Brussels.
The news came a day before the 10-year anniversary of the UK’s vote to leave the EU in 2016.
The date for the EU-UK summit had only been announced last week, as part of Starmer’s ‘reset’ of joint relations. The same event last year had produced a series of announcements and 'common understandings' on a host of different areas, and was hailed by both sides as a major breakthrough.
Momentum must be maintained
The common understandings were reached on sanitary and phytosanitary (SPS) goods, energy, fisheries and security. However, the Business and Trade Committee yesterday criticised the pace of delivery, arguing that many of them remained unfulfilled.
Anna Doherty, technical director, called on the next PM to ensure "momentum isn't lost" in the negotiations.
"Last year's summit saw both the UK and EU reach a consensus on the need to reduce SPS checks, to align Emissions Trading Systems (ETS) and to better facilitate youth mobility.
"We understand a lot of progress has since been made on creating the Common SPS Area in particular, which could simplify trade for many agrifood businesses.
“While the postponement of the summit was inevitable, with Starmer's resignation, traders will be keen to see that the momentum isn't lost in the reset negotiations, which was a major pledge in Labour's manifesto after all."
Reacting to the news of Starmer’s resignation, European Commission President Ursula von der Leyen said:
“It can take many leaders years to grow into the statesman you became in just two years. European and Ukrainian security is stronger because of you. Thank you, dear Keir.”
Burnham manoeuvres
The new Makerfield MP, Andy Burnham, has confirmed that he will enter the race for PM.
“I will put myself forward as part of this process”, he said in a social media post paying tribute to Starmer’s leadership.
“Our priority must be to work together to get the country back to where we all want it to be.”
So far, no other MP has announced a leadership bid and doubts remain on whether any challenger would could muster up the necessary 81 MPs to enter the leadership contest.
Having only been sworn in yesterday, hours after Starmer announced his resignation, Burnham has already received the backing of one rumoured leadership challenger, former health secretary Wes Streeting. Starmer's EU relations chief, Nick Thomas-Symonds, has also come out in support of Burnham.
Other figures more likely to launch a leadership challenge, such as former defence minister Al Cairns and former deputy PM Angela Rayner, have not made any announcement so far.
Streeting is now seen as the most likely to take over as chancellor from Rachel Reeves, assuming Burnham is elected as PM. Energy secretary Ed Milliband is also tipped as a front runner for the treasury brief, as is foreign secretary Yvette Cooper.
UK-Mexico deal goes live
UK exporters now enjoy greater access to the Mexican market under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Earlier this year, Mexico had ratified the agreement. The deadline for entry into force was 22 June.
The Department for Business and Trade (DBT) claims that the benefits for UK businesses are “lower tariffs, smoother digital trade and more chances to grow”.
The UK joined the CPTPP in December 2024. However, each member state must go through the ratification process. Currently, the CPTPP is in force between the UK and Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, Vietnam, Australia and now Mexico.
Canada has yet to complete the ratification process, while Costa Rica has become the latest country to apply for membership.
Earlier this year, Mexican trade minister Luis Rosendo Gutiérrez Romano said that his government is seeking a deal with the UK that would “complement” the CPTPP, with talks expected to restart in the second half of 2026.
Other headlines
- Former Democratic Unionist Party leader, Sir Jeffrey Donaldson, was convicted of sexual offences following a four-week trial
- DBT announced that the UK and Malaysia have launched negotiations on a new digital trade agreement
- Winners of the Chartered Institute’s International Trade Awards are set to be announced today in the House of Lords
Yesterday in trade
- Pakistani and Qatari mediators said that “major progress” was made on talks between the US and Iran on a permanent peace deal
- The government announced £50m in support for new critical minerals projects, claiming that this latest package will help reduce reliance on imports and product UK supply chains
- Ukraine hit Russian oil facilities across Crimea and Russia’s Krasnodar regions over the weekend, with multiple oil depots reported hit
