The UK government faces criticism from the Liberal Democrats for not doing enough to ease trade with the European Union. Meanwhile, Labour pushes to lower Brexit-related barriers, and tensions rise over potential US tariffs. Jonathan Reynolds, Labour's Shadow International Trade Secretary, met with EU Trade Commissioner Maros Sefcovic at the World Economic Forum in Davos on Thursday to discuss possible trade agreements.
The UK has left open the possibility of aligning with EU rules for food and farm products, aiming to regain frictionless access to European markets. This proposal aligns with Labour's previous election manifesto, which pledged to reduce barriers and red tape for exports to the EU. The EU has indicated that complete eradication of these barriers is feasible if the UK adheres to relevant EU standards, a process known as "dynamic alignment."
Maros Sefcovic told the BBC that a new agreement featuring dynamic alignment on standards could be achieved, alongside other areas of European cooperation on customs. The Liberal Democrats have included a fully fledged veterinary agreement with dynamic alignment in their manifesto. Jonathan Reynolds supports such an agreement, asserting that it does not contravene the government's red lines and is part of a "twin-track strategy" on trade.
The UK is also preparing its case to counter potential US tariffs, following President Donald Trump's suggestion that global markets might face trillions in costs to access American markets. In response to these developments, the Conservatives have expressed discontent over reports of a potential new UK-EU trade deal. Shadow Foreign Secretary Dame Priti Patel criticized the government for allegedly "bending the knee to the EU."
"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
Amidst these discussions, Sir Ed Davey, leader of the Liberal Democrats, highlighted the importance of a robust UK-EU customs arrangement. He emphasized its role in strengthening negotiations with the US and reducing business red tape.
"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
Jonathan Reynolds advocated for pursuing improved trade terms with the EU without revisiting contentious debates over Brexit while simultaneously seeking closer trade ties globally.
"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
The possibility of a veterinary agreement and dynamic alignment remains part of Labour's manifesto, according to Reynolds.
"No, that's part of our manifesto, an SPS agreement, a veterinary agreement." – Jonathan Reynolds