Britain struck a full trade deal with India earlier this month and secured some tariff relief from the US. The EU has also accelerated efforts to forge trade deals with the likes of India and deepen partnerships with countries including Canada, Australia, Japan and Singapore.
From the issues up for discussion, Britain is hoping to drastically reduce the border checks and paperwork slowing down UK and EU food and agricultural exports, while access to faster e-gates for UK travellers at EU airports would be popular.
In return, Britain is expected to agree to a limited youth mobility scheme and could participate in the Erasmus+ student exchange programme. France also wants a long-term deal on fishing rights, one of the most emotive issues during Brexit.
LIMITED ROOM FOR MANOEUVRE
Britain’s vote to leave the EU in a historic referendum in 2016 revealed a country that was badly divided over everything from migration and sovereignty of power to culture and trade.
It helped trigger one of the most tumultuous periods in British political history, with five prime ministers holding office before Starmer arrived last July, and poisoned relations with Brussels.
Polls show a majority of Britons now regret the vote, although they do not want to rejoin. Farage, who campaigned for Brexit for decades, leads opinion polls in Britain, giving Starmer limited room for manoeuvre.
But the prime minister and French President Emmanuel Macron have struck up a solid relationship over their support for Ukraine, and Starmer was not tainted with the Brexit rows that went before, helping to improve sentiment.
“BREAK THE TABOO”
The economic benefit will be limited by Starmer’s promise not to rejoin the EU’s single market or customs union, but he has instead sought to negotiate better market access in some areas – a difficult task when the EU opposes so-called “cherry picking” of EU benefits without the obligations of membership.
Removing red tape on food trade will require Britain to accept EU oversight on standards, but Starmer is likely to argue that it is worth it to help lower the cost of food and grow the sluggish economy.
Agreeing to a longer-term fishing rights deal will also be opposed by Farage, while the opposition Conservative Party labelled Monday’s event as the “surrender summit”.
One trade expert who has advised politicians in both London and Brussels said the government needed to “break the taboo” on accepting EU rules, and doing so to help farmers and small businesses was smart.
Trade experts also said Britain benefited from the greater focus on defence, making the deal look more reciprocal, and said improved ties made sense in a more volatile world.
When “trade disruption is so visible and considerable”, anything that reduced trade friction with a country’s biggest trading partner made sense, said Allie Renison, a former UK government trade official at consultancy SEC Newgate.
Source: CNA
