Scottish Government priorities for UK-EU negotiations: position paper

Assessment of Summit outcomes

We have assessed the outcomes of the UK-EU Summit in May as they relate to Scotland’s strategic interests and to the Scottish Government’s priorities for UK-EU cooperation, as detailed in our position papers. On this basis, we consider that the Summit outcomes fall into three broad categories:

• positive commitments
• partial progress
• no progress

Summit outcomes: positive commitments

Firstly, in some areas, the Common Understanding text includes positive commitments which align with our published position papers, and which we welcome. It is essential that negotiations in these areas now progress with urgency, so that all parties are able to benefit as soon as possible. In particular, we want to see swift action to:

Agree a UK-EU agrifood (sanitary and phytosanitary, or SPS) agreement

We wish to see an SPS agreement with broad scope delivered quickly, with appropriate transitional arrangements, for the mutual benefit of producers and consumers in Scotland, the UK, and the EU, particularly in rural areas.

It is important that the details of the agreement reflect the interests of Scotland’s farmers and food and drink producers. This should include recognising the distinctive Scottish context in relation to areas like innovation, and also taking account of the variability of climatic conditions and risks from climate change as well as the economic conditions which producers face. We also wish to see re-establishment of trade in seed potatoes with the EU that was halted by Brexit.

Agree the linking of the UK and EU emissions trading schemes (ETSs)

We see clear benefits to linking the two schemes, including the potential to support a smoother transition to net zero, due to a larger pool of carbon credits, which should bring down the cost of decarbonisation and generate a more stable carbon price.

However, it is essential to preserve the joint governance model of the UK ETS – in which Ministers and Parliaments across the four UK nations have equal roles in decision-making – as this is key to safeguarding Scottish interests. Devolved governments must, therefore, be fully involved in setting negotiation priorities and shaping internal governance processes to uphold the integrity and effectiveness of the ETS.

Linking should also enable mutual exemptions for UK and EU exporters from the EU and UK Carbon Border Adjustment Mechanisms (CBAMs) respectively, and thus avoid unnecessary trade barriers for Scottish businesses. It is important that the UK Government acts with urgency to secure these exemptions by January 2026, when the EU CBAM is due to be fully implemented. If exemptions are not granted in time, mitigations must be put in place to help ease the administrative and financial burden to ensure Scottish business and trade activities are not exposed to avoidable costs and disruption. 

Work towards UK participation in the EU internal electricity market

Brexit has led to less efficient UK-EU electricity trading, estimated by industry to be adding significantly to energy costs. It is vital that more efficient arrangements are developed swiftly, and with the close involvement of devolved governments, in light of considerable devolved responsibilities expected to be at stake, including in relation to planning and consenting.

Any model must be consistent with our key priorities of protecting consumers, ensuring affordable electricity supplies, encouraging investment in net zero, and improving resilience.

Ensure future UK decision-shaping of EU rules respects devolved competence

In relation to SPS, ETS, and electricity trading, the Common Understanding envisions both dynamic alignment with EU rules, and a future role for the UK in decision-shaping of EU rules. In these areas, it is important that relevant expertise is leveraged in the right fora, and in a way that respects devolved competence.

For example, in relation to an SPS agreement, this would include appropriate involvement in technical EU working groups in areas such as agriculture, fisheries and shellfish (i.e. the Standing Committee on Plants, Animals, Food and Feed), the European Food Safety Authority, and full access to the Rapid Alert System for Food and Feed. The UK should also seek participation in the European Food Security Crisis Mechanism. Agreement to early access to EU institutions would enable valuable cooperation sooner in areas such as horizon scanning, food crime, and food incidents.

Agree that the UK shall reassociate to Erasmus+

We have called consistently for full UK reassociation to the EU’s Erasmus+ programme, for the mutual benefit of people in Scotland, the UK, and the EU. Erasmus+ had a major positive impact in Scotland. Proportionally more students from Scotland took part in Erasmus+ than from any other country in the UK, and proportionally more EU students came to Scotland than anywhere else in the UK. The benefits of Erasmus+ reassociation extend beyond mobility – for example, it also presents strategically important opportunities for universities in Scotland and across the UK to become more closely involved in transnational alliances as part of the European Universities Initiative. The UK Government’s replacement Turing Scheme clearly fails to match the breadth and scope of Erasmus+.

The agency which operates Erasmus+ in the UK should have a strong presence in Scotland, fully recognising the role of the Scottish Government in delivery of education in Scotland. Any contract awarded by the UK Government to a national agency must include explicit provisions that: demonstrate how it will give equal weighting to the education and skills priorities of the devolved governments alongside those of the UK Government; and acknowledge that the devolved governments are not merely stakeholders, and will play a formal and active role in quality assuring the agency’s work.

Agree a “balanced youth experience scheme”

We welcome the commitment to ensure renewed opportunities for young people to live, work and study across the EU and UK.

Youth mobility visa agreements are a standard part of the UK immigration system – the UK already has such agreements in place with thirteen countries and territories. It is important that any UK-EU agreement retains the flexibilities of those current youth mobility visa routes. We are keen that the scheme creates as much opportunity as possible for young people from Scotland to benefit from experience in the EU, and equally for young people from the EU to benefit from experience in Scotland. We encourage the UK Government to seek to ensure that any cap to the scheme is reflective of the level of demand and includes a review period to assess impact and demand.

Implement the UK-EU security and defence partnership

We welcome the prospect of new opportunities for Scottish defence estates and businesses to contribute towards a defensively strong and united Europe.

We hope to see rapid progress on agreeing the terms for the UK to associate to the EU’s Security Action for Europe (SAFE) instrument, which would create the potential for Scottish companies to play their part in contributing Europe’s defence effort, drawing on the significant strengths of Scotland’s defence sector. 

Summit outcomes: partial progress

Secondly, there were areas of partial progress, where the Common Understanding text commits to action, but in a way that falls short of the level of ambition we believe is needed.

We call on the UK Government to pursue stronger commitments in these areas at the next UK-EU Summit, or via the framework of the UK-EU Trade and Cooperation Agreement (TCA), including the upcoming TCA review process. These areas include:

Commitments to “dialogues” on business mobility and mutual recognition of professional qualifications (MRPQ), and tentative language on touring artists

We wish to see progress on these priorities given structure and impetus – whether via new dialogues, relevant TCA fora, or the TCA review. It is also vital that we see the devolved governments being engaged meaningfully in these processes.

Scottish stakeholders have been clear: the ability to move easily across the EU for business travel is important. It is critical that the process for all Scottish professionals and sectors to travel in the EU is simplified, and that an agreement on business mobility is prioritised, to achieve transparency on entry and temporary stay and improved access to short-term visas.

This is vital, for example, for our creative sectors, where touring artists now face major barriers – in some cases, touring in the EU is no longer viable, due to additional costs and administrative complexity as a result of the need to acquire visas or work permits, as well as facing extra costs and complexity in transporting equipment. The impacts are significant, particularly for emerging artists. Touring artists from traditional and folk music backgrounds also play a significant ambassadorial role for Scotland’s minority languages – maintaining connections with other European minority language communities and raising the profile of Gaelic and Scots, with economic and cultural impact.

Article 126 of the TCA commits the EU and UK to endeavour, where appropriate, to review the activities of short-term business visitors with a view to agreeing possible improvements in the mutual interest. At the very least, this TCA commitment should be implemented. 

Another focus must be improving MRPQ, driven by regulator-to-regulator dialogue, where there is sectoral interest. It is important here to recognise the unique devolved landscape and the competence of the Scottish Parliament in the regulation of a number of professions.

The UK Government committed very clearly in its 2024 election manifesto to prioritising both touring artists and MRPQ – it must now deliver on those promises.

Commitments to “exchanges” on new energy technologies, including hydrogen and carbon capture, utilisation and storage (CCUS)

We require clarity on how the exchanges will be configured, and how devolved governments will be meaningfully engaged here. Scotland has the potential to play a pivotal role in Europe’s energy transition and energy security for decades to come. To unlock this potential, it is critical that the UK collaborates closely with the EU on key new technologies, including hydrogen and CCUS, to ensure coordination on regulation, research and innovation, and cross-border infrastructure.

Scotland has the resources, people, and ambition to become a world leader in the production of reliable, competitive, and sustainable hydrogen. To enable this, the UK needs to align with EU hydrogen regulations and rules for certification of renewable and low-carbon hydrogen, to enable smooth trade and transportation of hydrogen and hydrogen products between Scotland, the UK, and Europe. We also continue to support the case for direct pipelines between Scotland and Europe as part of hydrogen supply corridors being explored under the European Hydrogen Backbone initiative. In addition, Scotland has the infrastructure, skills, and storage capacity to make a significant, lasting contribution to decarbonisation across Europe via CCUS. Achieving this will require the UK-EU ETS linking, as well as dialogue to explore how best to support Scottish providers in obtaining carbon storage permits.

To enable structured engagement in the areas identified above, one option is to establish new working groups under the relevant Specialised Committees (SC) within the framework of the TCA, with a specific remit to drive work on proposals for closer UK-EU working, including regulatory cooperation. We propose such structures should be set up and asked to report in time for the next UK-EU Summit, expected in Spring 2026. These new working groups should cover key areas including:

• business mobility (including Article 126 commitments) and MRPQ, under the SC on Services, Investment and Digital Trade
• renewable hydrogen and CCUS, under the SC on Energy

Limited commitments on closer law enforcement and criminal justice cooperation

Cooperation between Scotland and the EU is essential to keep the people of Scotland safe, and we welcomed the commitments in the Common Understanding to deepen some aspects of justice and security cooperation with the EU.

However, we continue to call for improved cooperation on real-time arrest warrant sharing, a comprehensive UK-EU prisoner transfer agreement, and strengthened strategic dialogue between key Scottish, UK, and EU partners on justice and home affairs issues. Achieving progress on these topics is important, and would empower Scottish justice partners to more effectively combat criminality that is increasingly sophisticated and international.

Alongside those asks, it remains of paramount importance that UK cooperation with the EU respects both the fundamental rights set out in the European Convention on Human Rights (ECHR) – upon which the law enforcement and criminal justice cooperation aspects of the UK-EU relationship depend – and high data protection standards, including the importance of securing a renewed EU data adequacy decision.

Summit outcomes: no progress

Thirdly, there were areas of no progress, where the Common Understanding text is silent on key Scottish Government priorities. These major gaps include:

No reference to addressing wider barriers to trade beyond agrifood, energy and climate

Brexit is causing major economic harm to Scotland. Access to our greatest international trading market has been reduced sharply, with increased regulatory and administrative burdens, costs, delays, and complexity imposed on Scottish businesses.

If economic growth is a top priority for the UK, it makes no sense for us to be outside of the EU Single Market and the Customs Union, and without the benefits of Freedom of Movement. However, until this changes, it is important to explore other ways to lessen the damage of Brexit barriers to trade. Areas where we continue to call for progress include: negotiating a Mutual Recognition Agreement (MRA) on conformity assessment, exploring UK participation in the pan-Euro-Med (PEM) Convention on rules of origin, pursuing opportunities for closer UK-EU regulatory cooperation, and addressing inconsistent customs processes for traders.

Again, we believe there is value in considering new structures to drive progress in these areas – for example, a new working group under the TCA SC on Technical Barriers to Trade, to explore options for a UK-EU MRA on conformity assessment.

No reference to UK association to wider programmes beyond Erasmus+

The previous UK Government decided during the Brexit process to end UK participation in a wide range of EU programmes. With no option for Scotland to participate in its own right, this decision ended Scottish involvement in those programmes.

This decision continues to have profound impacts in Scotland. For example, the ending of our participation in the Creative Europe programme has resulted in major losses for our cultural and creative sectors – in terms of funding, as well as opportunities for cross-border collaboration and innovation.

The UK Government should work closely with partners to explore options for participation in programmes set out in the EU’s Multiannual Financial Framework for 2028-2034. Priorities should include Horizon Europe (FP10), the European Competitiveness Fund, European Territorial Cooperation, as well as the Creative Europe successor programme, AgoraEU.

Beyond those significant gaps in the Summit outcomes, we were also disappointed that the UK Government reached an agreement on fisheries, an area which is vital for Scotland and within devolved competence, without meaningful dialogue with Scottish Ministers. Alongside this outcome, the UK Government announced a Fishing and Coastal Growth Fund, with the stated intent to “revitalise the fishing sector and coastal communities right across the UK”. However, the UK Government’s approach to fund allocation ignores the size and significance of Scotland’s fishing industry, and we continue to call for this to be revisited urgently.