Ministers outline trade boost hopes as they seek ‘reset’ with European Union

The UK hopes to revive “flatlined” trade as part of its ambition to reset relations with the European Union, according to a business minister.

Douglas Alexander said the UK Government is “determined to tackle barriers to trade”, including through the negotiation of a UK-EU veterinary agreement to help “reduce unnecessary border checks”.

He added that ministers are “very carefully reviewing” the trade negotiating mandates they inherited from the previous government, including the Gulf Co-operation Council and India.

Business Secretary Jonathan Reynolds also said the Labour administration is “unencumbered” by the “internal politics” of the last Tory government when it comes to the EU and wider trade ambitions.

Their remarks came as MPs raised concerns about the existing trading arrangements.

Fall in goods trade

Speaking in the Commons, Labour MP Helen Hayes (Dulwich and West Norwood) asked the Government to take an “evidence-based approach” to the UK’s trade relationship with the EU and “take all possible measures to remove the barriers to trade that are holding our country back”.

Ms Hayes noted goods exports to the EU are “still 11% lower than they were in 2019” before the Brexit agreement took effect.

Mr Alexander replied: “While there has been better performance on services than on goods, she’s absolutely right to recognise the fall that we’ve seen in goods trade with the European Union.

“Overall trade since 2018 has essentially flatlined and that’s why, as a Government, we’re determined to reset our relationship with the European Union more broadly, but within that broader objective of resetting looking specifically at the border to try and achieve less frictionful (sic) trade.”

Labour MP Becky Gittins (Clwyd East) raised concerns from farmers over trading barriers with the EU.

Mr Alexander replied: “As part of that broader resetting of our relationship with the European Union, we are determined to tackle barriers to trade – like those described for our farmers, including through the negotiation of a UK-EU veterinary agreement to help reduce unnecessary border checks.”

Mandates

Shadow business minister Mike Wood asked for details on when the Government will publish its negotiating objectives ahead of talks with the European Union.

Mr Alexander replied in the Commons: “In terms of the negotiating mandates, clearly we inherited a number of open negotiating mandates from the previous government, not least in relation, for example, to the Gulf Co-operation Council and to India.

“We are very carefully reviewing those mandates within Government but we’ve been clear already that as well as resetting the relationship with the European Union, we are keen to essentially pursue a twin-track strategy, whereby we’ll take forward the work in relation to those FTAs (free trade agreements).”

Liberal Democrat business spokeswoman Sarah Olney earlier said small businesses are dealing with “reams of red tape when they attempt to trade with the rest of the world”.

She said: “I appreciate this is yet another occasion on which the Government must deal with a mess that’s not of its own making, but I must press the minister to tell us what concrete steps is he taking to support and empower our small businesses to trade internationally?”

Mr Reynolds replied: “Under this Government we’ll match our domestic, economic and business priorities.

“We will be able to reset our relationship with the European Union.

“I think, to be frank, the thing we bring is that we are unencumbered by some of the politics, the internal politics of the last government towards that, and at the same time, we believe we can make the most of those opportunities around the world.”