Andrew Bailey, the Governor of the Bank of England, emphasized the importance of rebuilding trade relationships between the UK and the European Union. In a recent interview with the BBC, he stated that strengthening ties with the EU would be advantageous for the UK economy and help mitigate inflationary pressures.
Bailey made the case that if a more friendly relationship with the EU is achieved, the potential for overall economic success can be greatly improved. He found that undoing the post-Brexit slump in UK-EU trade would have hugely beneficial effects. This is a rare change that would benefit both parties. This shift has huge economic stakes. The UK too is still navigating the uncertain waters of a new post-Brexit reality.
Bailey underscored the criticality of EU relations. He referenced the UK’s recent global trade agreement with the US, in which both countries agreed to drop tariffs on some British-made cars. The US will soon allow additional UK steel and aluminium products to enter the US market tariff-free. Frequently, the 10% duty will still apply to goods most often imported from the UK. This agreement is a prime example of how smart negotiations can strengthen economic trade ties and lay the groundwork for future cooperative efforts.
Bailey avoided taking a public stance on Brexit – as public official, this would go against Bailey’s brand. He welcomed the UK’s dealmaking efforts on all continents. Together, these efforts provide a palpitating test-case for other countries seeking to broker similar arrangements. He stressed that a veterinary deal with the EU would deliver considerable benefits. Harmonising standards could make a big dent in post-Brexit red tape that adds burden to all our food, farm and fish exports.
The Governor’s comments arrive against a backdrop of strained UK-EU trade relations since Brexit. Bailey’s advocacy for alignment on standards with the EU is aimed at simplifying export processes, thereby enhancing competitiveness in international markets. He claimed that reducing red tape would be especially helpful to UK exporters.