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

2025-01-24 04:04:00

Abstract: UK may adopt EU food rules for frictionless trade, avoiding Brexit red lines. EU open to agreement. UK seeks global deals too. Conservatives object.

The UK's trade minister has stated that the UK might adopt EU rules on food and agricultural products in order to restore frictionless trade with the European market. He pointed out that such an agreement, which would reduce all trade barriers by adhering to EU rules and standards, would not cross the government's red lines.

Previously, EU Trade Commissioner Maroš Šefčovič, in an interview with the BBC, said that a new agreement was possible, including so-called dynamic alignment of standards, in addition to other pan-European cooperation areas such as customs cooperation. Reynolds met with Šefčovič at the World Economic Forum in Davos and expressed his appreciation for the positive and helpful comments from the EU side. He added that Šefčovič's tone was consistent with the government's previous talk of a "dual-track strategy" for trade.

Reynolds stated, "We can improve trade terms with the EU without revisiting Brexit-related issues such as the customs union or single market. At the same time, we can also seek closer trade ties globally." The UK Labour Party pledged in last year's UK general election to reduce Brexit-related barriers and red tape to facilitate food and agricultural exports to the EU.

The depth of the agreement has been a point of contention. While no final decision has been made, a relevant agreement could be reached in the coming weeks. The EU has stated that if the UK follows relevant EU rules and standards (i.e., "dynamic alignment"), it is possible to completely eliminate trade barriers in this area. Reynolds told the BBC in Davos that two ideas put forward by Šefčovič—a comprehensive veterinary agreement related to dynamic alignment and a pan-European customs plan—did not cross the government's red lines.

Regarding the Pan-Euro-Mediterranean Convention, Reynolds stated that it did not cross a red line because it "is not a customs union." When asked if a "comprehensive veterinary agreement with dynamic alignment" crossed a red line, he replied, "No, it was part of our manifesto, a sanitary and phytosanitary agreement, a veterinary agreement."

The Conservative Party has expressed anger over reports of a possible new trade agreement between the UK and the EU. Shadow Foreign Secretary Priti Patel told MPs that the government was "kowtowing to the EU." She said: "These latest reports of the government potentially tying us to the EU are deeply concerning and show once again that Keir Starmer and his cronies are very happy to put their ideology above the national interest at any cost."

The Liberal Democrats, on the other hand, stated that the government was not doing enough to promote trade with the EU. The party's leader, Sir Ed Davey, said in the House of Commons: "It is time to agree on proper UK-EU customs arrangements so that we can strengthen negotiations with Donald Trump, reduce red tape for our businesses and boost economic growth." Reynolds told the BBC that he was preparing the UK's response to avoid potential tariffs imposed by the US on exports. This comes after US President Donald Trump suggested that the world may need to pay trillions of dollars to access the US market.