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Rachel Reeves has declared Britain’s buying and selling relationship with Europe to be “arguably much more vital” than its one with the US, as she sought to shift Britain’s focus away from its commerce spat with the Trump administration to an important upcoming summit with the EU.
The chancellor is pushing for an formidable “reset” of relations with the EU, together with opening up a youth journey scheme and aligning the UK with Brussels’ guidelines in an try to cut back limitations to commerce.
“I perceive why there’s a lot give attention to our buying and selling relationship with the US, however really our buying and selling relationship with Europe is arguably much more vital,” she advised the BBC.
“It’s so vital that we rebuild these buying and selling relationships with our nearest neighbours in Europe, and we’re going to try this in a method that’s good for British jobs and British shoppers.”
Sir Keir Starmer has insisted he is not going to “select” between Europe and America as he tries to stability the UK’s two key international relationships.
Reeves is about to debate commerce points with Scott Bessent, her US counterpart, in Washington on Friday, as the 2 international locations transfer in direction of placing a doable commerce deal.
Downing Avenue on Friday tried to make clear Reeves’ remarks, acutely aware of Donald Trump’s antipathy to the EU, which he has claimed was set as much as “screw” the US.
“The EU is our largest buying and selling associate,” Quantity 10 mentioned. “It’s factually a matter of public document. Each have unbelievable significance to us. And we deal with each with huge respect.”
The US accounted for 21.2 per cent of British exports in 2023, in contrast with 41.2 per cent for the EU, in line with UK authorities figures.
Reeves has made it clear in Washington this week that she is open to cutting British tariffs on US items — together with vehicles and agricultural merchandise — to assist safe a deal.
However she can be pushing for an formidable take care of the EU, together with making a youth visa scheme to advertise journey and aligning with EU guidelines in areas comparable to agriculture to cut back commerce limitations.
Reeves and Starmer additionally need to negotiate extra mutual recognition {of professional} {qualifications}, improved entry to the EU for British touring musicians and a brand new power partnership.
Downing Avenue is softening up public opinion for the inclusion of a youth mobility visa scheme — which critics have mentioned quantities to a type of free motion — to be included within the communique to be issued after the Might 19 EU-UK summit in London.
Starmer’s spokesman declined to rule out such a scheme, though he has dominated out a return to free motion. “We is not going to be outlined by the debates and arguments of the previous,” he mentioned, including that particulars can be hammered out over many months of negotiation.
“The prime minister is evident that he’ll seize any alternative to enhance the lives of working individuals within the UK, drive progress and hold individuals secure,” Downing Avenue added.
EU diplomats communicate in glowing phrases about Starmer’s 45-minute assembly with Ursula von der Leyen, European Fee president, on Thursday at which the summit was mentioned.
“Excellent heat, nice physique language, real pleasure of being collectively, full alignment of intents,” mentioned one diplomat briefed on the encounter. “I feel all the things is gaining momentum.”
The Might 19 summit will see the settlement of a brand new EU-UK defence and safety pact and can be accompanied by a communique setting out areas for additional negotiation later within the yr.
Individuals briefed on the plan say there can be a “bundle” of measures to be negotiated, together with on youth mobility, meals commerce, power, skilled {qualifications} and preparations for touring musicians.
Either side count on the prevailing fishing deal between Britain and the EU, on account of be renewed subsequent yr, to be rolled over — maybe for one more two years — in an effort to head off a row with France and different coastal states.
Might 19 is seen by each side as a “place to begin” for haggling over the main points of the bundle, together with the construction of a youth mobility scheme and future fish quotas, with many trade-offs to be made alongside the best way.
In the meantime, the Nationwide Farmers’ Union president Tom Bradshaw mentioned the UK couldn’t compromise its entry to the EU marketplace for the sake of a US commerce deal.
“When you have a look at the monetary worth of an EU deal, meals exports to the EU are value six or seven instances what our meals exports to the US are value,” he advised the Monetary Instances.
Bradshaw mentioned he had acquired assurances from the federal government that it might not sacrifice animal well being and welfare requirements for the sake of a take care of the US — echoing one thing Reeves mentioned publicly earlier this week.
“The continuing EU negotiation helps us with that,” he mentioned. “As a result of I feel they’re very involved in regards to the jeopardy that any US commerce deal may deliver to EU accessibility and an SPS [veterinary] settlement.”
