UK has not ruled out EU food trade deal, says minister

The UK's Trade Minister has indicated that the UK is not ruling out following EU rules on food and agricultural products in order to regain frictionless trade with European markets. He emphasized that while such an agreement would reduce trade barriers, it would be predicated on adhering to EU rules and standards, and would not cross the government's red lines.

In an interview with the BBC, UK Trade Minister Jonathan Reynolds stated that EU Trade Commissioner Maroš Šefčovič also told the BBC that new agreements, including so-called "dynamic alignment" on standards, were possible in other areas of pan-European cooperation, such as customs. Reynolds met with Šefčovič at the World Economic Forum in Davos and thanked him for his "extremely positive" and "helpful" comments. Reynolds added that Šefčovič's tone was consistent with the government's previous talk of a "twin-track strategy" on trade.

Reynolds stated, "We can improve the terms of trade with the EU without re-litigating the customs union or the single market or the Brexit argument. At the same time, we can pursue closer trade ties globally." He also highlighted that the Labour Party pledged in last year's UK general election to reduce barriers associated with Brexit and cut red tape for agricultural exports to the EU. The depth of the agreement has not yet been finalized, but could be determined in the coming weeks.

The EU told the BBC on Thursday that if the UK follows relevant EU rules and standards, and adjusts as those rules change, it is possible to completely eliminate trade barriers in the sector, a process known as "dynamic alignment." In his interview with the BBC in Davos, Reynolds said that two ideas proposed by Šefčovič—a comprehensive veterinary agreement with dynamic alignment and a pan-European customs scheme—did not cross the government's red lines. Regarding the Pan-Euro-Mediterranean Convention, he stated that it did not cross a red line because it was "not a customs union." When asked if a "comprehensive veterinary agreement with dynamic alignment" crossed a red line, he replied, "No, that's part of our manifesto, an SPS agreement, a veterinary agreement."

However, the Conservative Party has expressed anger over reports of a potential new UK-EU trade deal, with Shadow Foreign Secretary Priti Patel telling MPs that the government is "caving in to the EU." She said, "These latest reports of the government potentially tying us to the EU are deeply concerning and demonstrate once again that Keir Starmer and his cronies are all too happy to put their ideology above the national interest, at any cost." The Liberal Democrats, on the other hand, have stated that the government is not doing enough to promote trade with the EU. The party's leader, Sir Ed Davey, stated in the House of Commons: "It's time we had a proper UK-EU customs arrangement so we can strengthen our negotiations with Donald Trump, cut red tape for our businesses and boost economic growth." Reynolds also told the BBC that he is preparing the UK's case to avoid potential tariffs on exported goods after US President Donald Trump hinted that the world may need to pay trillions of dollars to access the US market.