The UK's planned EU "Reset" poses a serious threat to the country's sovereignty and could expose it to retaliation from existing trade partners, according to David Collins, professor of international economic law at City University.
Dynamic alignment with EU law on agrifoods and emissions trading risks violating several of the UK’s key trade agreements. This includes the 12-nation Comprehensive Progressive Trans-Pacific Partnership (CPTPP), which became fully effective for the UK earlier this month.
The proposed dynamic alignment on agrifoods aims to reduce or remove border checks by creating a common regulatory area. Under this arrangement, the UK would be required to update its laws in line with EU rule changes, despite having no say in their creation, and would be subject to the jurisdiction of the European Court of Justice.
The EU Reset also obliges the UK to follow the EU’s carbon emissions trading scheme, adopting its new carbon-border adjustment mechanism (CBAM). This could lead to higher prices for consumers and potentially be viewed as arbitrary protectionism by treaty partners, risking challenges under the UK's trade treaties or World Trade Organization rules.