Both the UK Prime Minister and the Leader of the Opposition, Sir Keir Starmer, have recently signaled evolving perspectives on the United Kingdom's economic relationship with the European Union. While the government has indicated a revised approach to bilateral engagement, Sir Keir Starmer, leader of the Labour Party, has outlined a specific strategy focused on closer alignment with the EU single market "if it's in our national interest," emphasizing a sector-by-sector approach that avoids rejoining the customs union or single market, or reinstating freedom of movement.
Government Signals on UK-EU Relations
The UK Prime Minister has signaled a revised approach to the United Kingdom's relationship with the European Union following Brexit. This development, which occurred on a Saturday, is understood to communicate intentions to businesses, Brussels, other European capitals, and members of the Prime Minister's own parliamentary party.
Discussions regarding closer post-Brexit economic relations are now anticipated to occur as part of an regular bilateral dialogue, expanding beyond the current year's formal review of the existing UK-EU agreement. This shift is viewed as the government's response to political inquiries concerning a broader re-evaluation of Brexit, particularly regarding potential re-entry into the EU customs union.
Opposition's Stance: Sir Keir Starmer's Proposals
Sir Keir Starmer, leader of the Labour Party, has articulated a willingness to pursue closer alignment with European Union markets, stating it would be undertaken "if it's in our national interest." He specified that any further alignment would prioritize the single market over the customs union, a strategy aimed at preserving existing trade agreements with countries like India and the United States, with further agreements anticipated in the Middle East.
Starmer affirmed that a Labour government, if elected, would not revisit manifesto commitments to avoid rejoining the EU single market or customs union, nor would it reinstate freedom of movement. He emphasized that building closer economic ties would constitute a "sovereign decision" for the UK and suggested that further alignment should be considered on an "issue-by-issue, sector-by-sector basis."
Current alignment on some food and agriculture regulations, which facilitates access to the single market, was cited by Starmer as having contributed to a positive relationship with the EU. His proposed realignments, referred to by some as a "Brexit reset," target three specific sectors: food and agricultural exports, electricity, and emissions trading, with the stated aim of facilitating trade flow.
When questioned about potential implications for Brexit, Starmer stated that his approach was not an attempt to reverse the decision but rather to "look forward" and identify opportunities in the national interest.
Youth Mobility Scheme
Concerns have been raised regarding current negotiations for a youth mobility scheme for British and EU students. Starmer clarified that this would not constitute a return to freedom of movement, while expressing personal support for young people having international opportunities, referencing the UK's return to the Erasmus scheme.
Political Reactions and Broader Perspectives
Statements regarding these developments have drawn reactions from various political groups and stakeholders:
- Conservative Party: A Conservative spokesperson characterized Labour's stance as a "Brexit betrayal," asserting it would result in the UK "surrendering our freedom to cut regulation and strike our own trade deals." The spokesperson also suggested that Starmer was using Brexit as a justification for the UK's economic challenges.
- Liberal Democrats: A Liberal Democrat MP welcomed Starmer's remarks on EU alignment. The MP indicated that her party has consistently advocated for such a direction but prioritized the customs union over the single market due to concerns about free movement.
- Trade Unions: Paul Nowak, a senior UK trade unionist, previously stated that the "closest possible economic and political relationship with the European Union" is "essential" for economic growth.
- Labour Cabinet Members: Deputy Prime Minister David Lammy clarified last month that rejoining the EU's customs union is "not currently our policy" but referenced Turkey's economic growth through cooperation with the bloc.
Turkish Model and Historical Context
The article referenced Turkey's customs union agreement with the EU, noting that it excludes agricultural goods and services but eliminates point of origin checks. This model has been suggested as a potential alternative for the UK.
The United Kingdom formally departed from the EU single market and customs union at 11:00 PM on December 31, 2020. The agreement negotiated by then-Prime Minister Boris Johnson prior to departure prioritized autonomy from EU regulations over maintaining frictionless trade for British exporters across Europe.