The UK pitched the creation of a single market for goods with the European Union as part of an attempt to restore trade trade with the bloc, it has been reported.
As Keir Starmer tries to win over the nation following Labour’s catastrophic defeat in the local elections this month, he has promised closer relations with the EU in an attempt to boost the economy.
According to The Guardian, as part of Starmer’s so-called ‘Brexit reset‘, the Cabinet Office’s leading official on EU relations, Michael Ellam, raised the idea of a single market for goods only on a recent trip to Brussels.
The plan would mean British products would be able to circulate in the continent free from checks and tariffs but the EU rejected the idea with negotiators instead wanting to focus on smaller areas.
Fears over special treatment for the UK
The proposal was reportedly rejected by a handful of member states, who instead suggested Britain should reconsider rejoining the customs union or the European Economic Area.
One of the concerns was that the proposal could mean the UK gets a better deal than EU member states, as Britain would effectively have access to the benefits of free trade without paying into the EU’s budget.
Sir Keir Starmer and President of the European Commission, Ursula von der Leyen, at a UK-EU summit in London last year (Photo: Carl Court/Getty)Norway and Switzerland are not part of the EU but have deep trade agreements but allow the freedom of movement in order to get access to the single market.
Freedom of movement is a red line for the Government as Starmer has repeatedly said he will take the UK back into the single market or customs union, leaving him in a similar stalemate to Theresa May during the original Brexit negotiations.
Driving Eurosceptic movements
Brussells officials are conscious that any deal they give the UK will be watched closely by other countries, especially those with their own Eurosceptic movements.
If the UK is perceived to get a better deal on the outside, it will add momentum to parties such as the National Rally in France and Vox in Spain, both of which have been pushing for years to take their countries out of the EU.
One EU source told the Financial Times the proposal was rejected because it risked giving the UK a “better deal than member states”, potentially triggering uproar within the European parliament and a debate over what membership means.
All change
These negotiations come against a backdrop of political uncertainty in the UK, with a leadership election likely to be triggered before the next official EU summit in July.
With that in mind, European negotiators may be thinking about the possible policies of likely contenders Wes Streeting and Andy Burnham, both of whom have indicated a desire for closer ties.
The former health secretary is particularly pro-European, arguing last Saturday that Britain’s future “lies with Europe – and one day back in the European Union”.
Burnham said something similar as recently as last September, but has confirmed he would not seek to “re-run” Brexit if he were leader, suggesting his position might have shifted.
Greater Manchester Mayor and Labour candidate Andy Burnham during his campaign launch ahead of the Makerfield by-election (Photo: REUTERS/Temilade Adelaja)Burnham is also attempting to become an MP in a seat, Makerfield, which voted strongly to leave the EU in 2016 while many of the surrounding areas voted Reform in the recent local elections.
In either case, EU officials might be thinking that it’s better to bide their time for a soon-to-be-elected friendlier PM than negotiate with a lame duck.
What could be agreed instead?
With a summit confirmed to be going ahead in July, pre-talk suggestions have been going back and forth between the teams for months.
The agreement will mainly focus on food and drinks, the Government previously said, including a veterinary deal to reduce barriers to agri-food trade.
Other areas of likely agreement include an emissions trading deal and the much-touted youth mobility scheme, which will allow British 18 to 30-year-olds to spend time in Europe and vice-versa.
Both sides are also reportedly seeking closer ties on defence, after the Government’s announcement earlier this month that the UK would be joining the EU’s €90bn (£78bn) loan for Ukraine.
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