Unlock the White Home Watch publication free of charge
Your information to what Trump’s second time period means for Washington, enterprise and the world
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 bold “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 boundaries 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 instructed 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 customers.”
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 nations transfer in the direction of hanging 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 report. Each have unimaginable significance to us. And we deal with each with monumental 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 keeping 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 automobiles and agricultural merchandise — to assist safe a deal.
However she can also be pushing for an bold cope with the EU, together with making a youth visa scheme to advertise journey and aligning with EU guidelines in areas corresponding to agriculture to cut back commerce boundaries.
Reeves and Starmer additionally wish to negotiate extra mutual recognition {of professional} {qualifications}, improved entry to the EU for British touring musicians and a brand new vitality 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 Could 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 could 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 folks within the UK, drive development and maintain folks protected,” 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 believe every little thing is gaining momentum.”
The Could 19 summit will see the settlement of a brand new EU-UK defence and safety pact and might be accompanied by a communique setting out areas for additional negotiation later within the yr.
Folks briefed on the plan say there might be a “bundle” of measures to be negotiated, together with on youth mobility, meals commerce, vitality, skilled {qualifications} and preparations for touring musicians.
Either side count on the prevailing fishing deal between Britain and the EU, resulting from be renewed subsequent yr, to be rolled over — maybe for an additional two years — to be able to head off a row with France and different coastal states.
Could 19 is seen by either side as a “start line” 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.
“Should you take a look at the monetary worth of an EU deal, meals exports to the EU are price six or seven instances what our meals exports to the US are price,” he instructed the Monetary Occasions.
Bradshaw mentioned he had obtained assurances from the federal government that it might not sacrifice animal well being and welfare requirements for the sake of a cope with the US — echoing one thing Reeves mentioned publicly earlier this week.
“The continued EU negotiation helps us with that,” he mentioned. “As a result of I believe they’re very involved concerning the jeopardy that any US commerce deal might convey to EU accessibility and an SPS [veterinary] settlement.”
