Unlock the White House View Newspaper FREE
Your guide to what Trump’s second term for Washington, business and the world mean
Rachel Reeves has declared Britain’s trade relations with Europe as “controversial even more important” than with the US, after she sought to shift Britain’s focus away from her trade with the Trump administration at an important Summit with the EU.
The Chancellor is pressuring an ambitious “restoration” of EU relations, including opening a youth travel scheme and aligning the United Kingdom with Brussels rules in an effort to reduce obstacles in trade.
“I understand why there is so much focus on our trade relations with the US, but in fact our trade relationship with Europe is probably more important,” she told the BBC.
“It is so important that we rebuild those trade relations with our nearest neighbors in Europe, and we will do it in a good way for British work and British consumers.”
Sir Keir Starmer has insisted that he will not “choose” between Europe and America as he tries to balance the two main global relations of the United Kingdom.
Reeves is set to discuss trade issues with Scott Bessent, her American counterpart in Washington on Friday, as both countries move towards hitting a possible trade agreement.
Downing Street on Friday tried to clarify Reeves’ remarks, aware of Donald Trump’s antipathy to the EU, which he claimed to have risen to “screw” the US.
“The EU is our largest trading partner,” said number 10. “It is actually a matter of public data. Both are of great importance to us. And we treat them both with great respect.”
The US accounted for 21.2 percent of British exports in 2023, compared to 41.2 percent for the EU, according to the United Kingdom Government figures.
Reeves has made it clear to Washington this week that it is open to cut British tariffs for American goods – including cars and agricultural products – to help secure an agreement.
But it is also pressuring an ambitious agreement with the EU, including creating a youth visa scheme to promote travel and approximation with EU rules in areas such as agriculture to reduce trade barriers.
Reeves and Starmer also want to negotiate more mutual recognition of professional qualifications, improved EU access to British tourist musicians and a new energy partnership.
Downing Street is mitigating public opinion on incorporating a youth mobility visa scheme-which critics have said that the amount in a form of free movement-will be included in the communication that will be issued after the May 19th Summit in London.
Starmer’s spokesman refused to exclude such a scheme, though he has ruled out a return to free movement. “We will not be determined by the debates and arguments of the past,” he said, adding that the details would be blocked during many months of negotiations.
“The prime minister is clear that he will take every opportunity to improve the lives of people working in the UK, leading growth and keep people safe,” Downing Street added.
EU diplomats speak on bright conditions about Starmer’s 45-minute meeting with Ursula von der Leyen, President of the European Commission on Thursday in which the Summit was discussed.
“Extraordinary warmth, excellent body language, real pleasure to be together, complete approximation of goals,” said a diplomat informed about the meeting. “I think everything is gaining momentum.”
The May 19 summit will see the agreement of a new EU Defense and Security Pact and will be accompanied by a press release that determines areas for further negotiations later during the year.
People informed about the plan say there will be a “package” of measures to negotiate, including youth mobility, food trade, energy, professional qualifications and arrangements for tour musicians.
Both sides expect that the existing fishing agreement between Britain and the EU, to be renewed next year, wrapped – perhaps for two more years – in order to start with France and other coastal states.
May 19 is seen by both sides as a “starting point” to participate in the details of the package, including the structure of a youth mobility scheme and future fish quotas, with many trade interruptions to be made along the way.
Meanwhile, the President of the National Union of Farmers Tom Bradshaw said the United Kingdom could not risk its access to the EU market for the sake of an American trade agreement.
“If you look at the financial value of an EU deal, EU Food Exports are worth six or seven times what our food exports are worth at the US,” he told the Financial Times.
Bradshaw said he had received guarantees from the government that he would not sacrifice the standards of animal health and well -being for the sake of an agreement with SH.BA – echoing something that Reeves publicly said earlier this week.
“The EU’s constant talks help us in this,” he said. “Because I think they are very concerned about the danger that any US trade agreement can bring to the EU access and an SPS (veterinary) agreement.”
