Monday, December 23, 2024

UK-EU trade: Labour looks to build links with ‘friends’ in Europe

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The UK’s Labour government is taking its first steps to building greater trading links with EU members as new business secretary Jonathan Reynolds meets international counterparts in Italy.

In his first international visit since the party’s electoral landslide, Mr Reynolds will tell a G7 meeting of trade ministers that the UK wants “a closer, more mature, more level-headed relationship with our friends in the European Union”.

“In the UK, we now have a strong government with an even stronger mandate from the British people. One that respects, wants to partner with and is open for business,” Mr Reynolds will say.

“My message to you today is simple – Britain is back. A confident, outward-looking, future-facing UK is ready and willing to play our part on the international stage.

“We are seeking a closer, more mature, more level-headed relationship with our friends in the European Union – our nearest and largest trading partner, and we also intend to forge better trading relationships with countries around the world.

The business secretary’s trip will also see him meet Vice-President of the European Commission Valdis Dombrovskis and German Vice Chancellor Robert Habeck. It comes as prime minister Keir Starmer hosts EU leaders at Oxford’s Blenheim Palace in the same week.

The moves mark a clear departure from previous Conservative government’s hardline approach to the EU since the 2016 Brexit referendum. Trade agreements with the continental bloc since have been marred by border checks and higher costs for consumers – issues Labour has pledged to tackle.

Business and Trade Secretary Jonathan Reynolds will meet his G7 counterparts in Italy (Lucy North/PA)
Business and Trade Secretary Jonathan Reynolds will meet his G7 counterparts in Italy (Lucy North/PA) (PA Wire)

Addressing Brexit, the party’s election manifesto says they will “work to improve the UK’s trade and investment relationship with the EU”. This includes a a veterinary agreement, supporting touring artists, and ensuring mutual recognition of professional qualifications.

But Sir Keir has also remained committed to the result of the Brexit referendum. Shortly before his election victory, the new prime minister told reporters that UK will not rejoin the EU in his lifetime, meaning “no return to the single market, the customs union, or freedom of movement.”

The Brexit deal finalised by Boris Johnson in 2020 allows for the UK and EU to review their agreement every five years. The next juncture will come in 2026, giving Sir Keir his first real opportunity to make his mark on the Brexit deal.

However, many in the EU have poured water on the chance of wide-reaching deals being struck at this review. The Centre for European Reform think tank points out that the negotiation is limited in scope, with one EU official saying it is “a review, not a revision, not a renewal or even amendment of any sort”.

Nevertheless, the UK business secretary is clearly keen to align the country’s interests with the EU’s this week, expected to tell officials “we are not naïve about the scale of the challenges threatening global stability,” such as Putin or China.

“It’s why the UK wants to work in partnership with you to increase supply chain resilience. Doing so gives businesses the confidence to invest and grow by planning not just for the next year but for the next decade.”

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