British Prime Minister Andy Burnham has set a target to finalize negotiations on a renewed relationship with the European Union by the end of 2026, amid unresolved disputes over trade regulations and youth mobility arrangements. The announcement followed talks in New York with Ursula von der Leyen, president of the European Commission, as both sides sought to narrow their differences ahead of a planned summit.

A UK-EU summit initially scheduled for July to present a comprehensive deal covering youth mobility, food and drink trade, and energy market cooperation has been postponed twice. Key issues remain around the EU’s "Made in Europe" regulations, which require products to meet stringent regional standards. UK officials argue that these rules could disadvantage British manufacturers and disrupt domestic supply chains, concerns that have stalled progress.

Burnham’s team has reportedly expressed reservations about a draft youth mobility agreement previously outlined by Labour leader Sir Keir Starmer. While the UK holds concerns that allowing tens of thousands of young Europeans to live and work in Britain might be politically sensitive, especially in the context of reformist opposition portraying it as a revival of freedom of movement, there is some willingness to compromise. On fees, Burnham is considering proposals to allow EU students to pay home fee rates—approximately £9,790 per academic year—instead of higher international tuition fees, potentially easing tensions on this point.

Negotiators remain apart on the scope of the youth mobility scheme’s participant cap. The EU advocates for a limit of 100,000 young people annually, which is double the 50,000 threshold the UK had indicated as acceptable. Officials have indicated that no summit will proceed unless there is sufficient advancement on resolving the Made in Europe concerns.

Speaking ahead of the Commission president meeting, Burnham emphasized a constructive approach, highlighting the importance of building on prior efforts to rebuild diplomatic ties, especially those undertaken by Starmer. “What we have got to do is now go to the next level in terms of reaching practical agreement that will further boost the British economy,” he said.

When asked about the prospect of the UK rejoining the EU, Burnham described the issue as one for “another day,” noting that the EU has made it clear that forms of associate membership similar to arrangements with Canada are not currently available to the UK.

A government spokesperson underlined the shared challenges facing the UK and the EU, including security threats and industry oversupply, and said collective responses were crucial. However, no further details were provided on the ongoing negotiations.