Jonathan Reynolds, the UK's Shadow Secretary for Business and Industrial Strategy, addressed the pressing issue of UK-EU trade agreements during an interview with the BBC in Davos. Reynolds commented on recent talks with Maros Sefcovic, the EU Trade Commissioner, who proposed a new agreement featuring dynamic alignment on standards. This alignment would involve the UK mirroring EU rules and standards to benefit from reduced trade barriers.
Reynolds indicated that such an agreement would not breach the government's stated red lines. These red lines, outlined in Labour's manifesto, emphasize reducing Brexit-related hurdles and simplifying exports of food and farm products to the EU. This aligns with Reynolds' assertion, "No, that's part of our manifesto, an SPS agreement, a veterinary agreement."
Meeting with Sefcovic at the World Economic Forum in Davos on Thursday, Reynolds applauded Sefcovic’s "incredibly positive" approach. Sefcovic suggested that a new agreement could facilitate pan-European cooperation on customs. Reynolds noted that this approach fits well with the UK's "twin-track strategy" for trade, which aims to enhance relations with both the EU and other international partners.
The possibility of dynamic alignment has sparked varied reactions. Sir Ed Davey, leader of the Liberal Democrats, emphasized the need for a comprehensive UK-EU customs arrangement to bolster negotiations with global partners like the United States.
"It is time for a proper UK-EU customs arrangement so we can strengthen our negotiations with Donald Trump, cut the red tape on our businesses and grow the economy." – Sir Ed Davey
On the other hand, Dame Priti Patel voiced concerns over potential implications of aligning too closely with EU standards.
"These latest reports that the government might shackle us to the European Union are deeply concerning, and once again make clear that Keir Starmer and his chums are all too happy to put their ideology ahead of our national interest, no matter the cost." – Dame Priti Patel
Reynolds is also preparing to address potential US tariffs on British exports after President Donald Trump suggested substantial costs for accessing American markets. Meanwhile, the EU has pointed out that a complete removal of trade barriers could be achieved if the UK adheres to evolving EU rules and standards.
The UK's openness to following EU regulations for food and agriculture signifies a move towards renewing frictionless access to European markets. Reynolds remains optimistic about improving trade terms without re-engaging in debates over customs unions or single markets.
"We can improve the terms of trade with the EU in a way which doesn't revisit customs unions or single markets or the arguments of Brexit, and we can do that whilst pursuing closer trade links around the world." – Jonathan Reynolds