Sir Ed Davey, leader of the Liberal Democrats, has issued a call for the United Kingdom to negotiate a new customs union deal with the European Union. He argues that such a move would empower the UK to face global trade negotiations, particularly with President-elect Trump, from a position of strength rather than weakness. This call comes as the UK economy showed a modest growth of 0.1% in November, marking the first increase in three months, yet falling short of economists' expectations.
In a speech focusing on the UK's relationship with Brussels, Sir Ed criticized the Conservative government for rejecting the notion of a new customs union. He believes this would be the most effective way to dismantle trade barriers and propel economic growth. According to Sir Ed, the UK should not approach Trump "cap in hand," but instead strive for a trade deal that reflects equal standing between the parties.
"If we seem as weak or as desperate as the Conservatives or Reform would have us appear, Trump will treat the UK the same way he has treated so many throughout his career" – Sir Ed Davey
Sir Ed accused Conservative leader Kemi Badenoch of wanting to "beg for whatever trade deal he'll give us" from Trump, portraying her approach as subservient. He questioned why the UK would seek closer ties with what he described as "an ailing economic model," referring to Trump's policies.
The Liberal Democrats have made significant electoral gains recently, securing a record 72 seats in the last general election, even without heavily emphasizing European Union relations during their campaign. However, rejoining the EU remains a long-term goal for the party. Sir Ed's recent speech marks his first major address on relations with Brussels since taking over as party leader.
"not just tinkering around the edges of the botched deal the Conservatives signed four years ago" – Sir Ed Davey
He emphasized that strengthening trading relationships with European neighbors and other partners can be achieved more rapidly than through continued separation from the EU. Sir Ed argued that a new customs union deal would "turbocharge" the UK's economy, enhancing its capacity to negotiate effectively with the incoming Trump presidency.
"fawning over Trump and licking his boots" – Sir Ed Davey
The Liberal Democrat leader warned that Trump is unpredictable and cannot be relied upon to adhere to international agreements or play by established rules. A party source described their policy of rejoining the EU customs union as a practical strategy to bolster the UK's economy.
Sir Ed's call for ambition and urgency comes at a time when he believes economic growth should be prioritized by revisiting international trade relationships. He criticized the current Conservative leadership for their lack of a concrete plan post-Brexit. Kemi Badenoch herself acknowledged this sentiment:
"We announced that we would leave the European Union before we had a plan for growth outside the EU" – Kemi Badenoch
Despite the challenges, Sir Ed remains optimistic about the UK's potential to forge stronger ties with its European partners, which he believes can be accomplished more swiftly than maintaining a distance from the EU. His vision includes leveraging these relationships to create robust economic policies that place the UK on an equal footing with global leaders like Trump.
"more interested in advancing Trump's agenda over here than the UK's interests over there" – Sir Ed Davey