A leading centre-left think tank says that in response to the slump in trade with the EU, ministers are likely to spur negotiations to fundamentally rewrite post-Brexit rules in order to create closer ties between the UK and Brussels. He showed his perspective.
President Donald Trump's arrival at the White House next week will prompt the government to take the lead in negotiating a trade deal with the US to help boost UK exports, the Institute for Public Policy Research (IPPR) said. , he said.
In a report that lays out the full extent of the UK's declining trading position inherited under the Labor government, the IPPR says ministers have set out a wide range of measures for industries including energy, defence, food, communications, healthcare and industry. He said that it is necessary to consider. Pharmaceuticals – Increases your chances of selling your products and services abroad.
The report said Britain's trade policy had been “disorganized” and “disoriented” since the 2016 vote to leave the EU, and that since leaving the EU single market and customs union in 2021, it has Efforts to reach mini-agreement with EU countries have stalled, it added. .
The report found that the UK's exports of goods to the EU would have fallen by 27% from 2021 to 2023, compared with remaining within the European Free Trade Area, and imports of EU goods into the UK would have fallen by 32%. is suggested.
Meanwhile, other G7 countries such as the United States, Japan, France, and Italy enjoyed a trade boom. In the UK, total merchandise trade fell by 10% from 2019 to the end of 2023. Looking at the numbers from 2019 to the end of Q3 2023, other G7 countries saw an average increase of 5%.
President Trump's inauguration next week could mark a turning point in global trade policy and usher in a series of restrictive measures by the U.S. government. The next U.S. president has said he wants to increase the burden on U.S. consumers for imported goods he claims benefit from subsidies. His main target is China, but companies based in the EU and the UK are also subject to tariffs imposed by U.S. customs that could be passed on to consumers.
Among the policy changes, the IPPR recommends lower tariffs on UK imports to help the UK reach its net zero target, while also calling for tariff reductions in deals with major trading partners such as India and the US. “Even a small agreement with the US could be beneficial and allow the UK to avoid President Trump's new tariff regime,” said Marley Morris, author of the report.
To reduce the impact of Brexit, ministers should seek to negotiate a veterinary agreement with the EU that would reduce inspections of food crossing the English Channel. According to recent research, this could increase Britain's agricultural exports to the EU by up to 22.5%, the report said.
Ministers should also seek a mutual recognition agreement (MRA) with the EU to demonstrate that products manufactured in the UK comply with standards set in Brussels. It should also seek to align the UK and EU emissions trading schemes to avoid the EU's carbon border adjustment mechanism, which imposes a levy on importers that reflects the carbon intensity of particular goods.
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Mr Morris, associate director at IPPR, said: “With Donald Trump's inauguration just days away and the government's intention to 'reset' with the EU, the time is ripe for a new UK trade strategy. “
“The challenges are clear: declining merchandise exports, breaking down barriers to the EU and disrupting the global economy. But a new strategy will require developing new export support programmes, restructuring the UK-EU trade relationship and It should help modernize our approach to trade agreements.”
