Keir Starmer Urged to Prioritize Closer EU Trade Ties as Strategic Necessity for UK Firms
The British Chambers of Commerce (BCC) has highlighted significant challenges faced by UK exporters under the current Trade and Cooperation Agreement (TCA) with the EU, revealing that 54% of exporters in a recent survey of nearly 1,000 firms feel the TCA does not aid their efforts to grow EU sales — an increase of 13 percentage points compared to the previous year. Representing over 50,000 firms employing approximately 6 million people, the BCC is calling for a reset in relations with the EU, describing it as a strategic necessity for growth.
Labour leader Keir Starmer echoed this stance, stating that closer trade ties with the EU are strategically crucial, with pressure mounting on Labour to accelerate its reset with Brussels. However, the Labour manifesto commits the party to no return to the EU single market, customs union, or freedom of movement, with Starmer acknowledging that rejoining these frameworks within his lifetime is unlikely. Despite this, several pro-EU Labour ministers—such as Wes Streeting, David Lammy, Peter Kyle, Liz Kendall, and Bridget Phillipson—are reported to advocate for deeper EU ties, potentially including reestablishing a customs union.
In a positive development, Labour has agreed to rejoin the Erasmus+ programme by 2027. The BCC has outlined five key negotiation priorities for 2026 to enhance UK-EU cooperation: reducing border checks on animal and plant products; linking UK and EU emissions trading schemes; establishing a youth mobility scheme; securing UK participation in the EU's Security and Defence framework (SAFE); and improving VAT and customs simplification collaboration.
The UK government has responded by emphasizing efforts to remove red tape and trade barriers, supporting job creation and growth, and continuing progress in ongoing negotiations with the EU.
