The UK is beginning to establish stronger trade links with the EU, with the new business secretary, Jonathan Reynolds, engaging in talks with international counterparts in Italy. During his inaugural overseas visit following Labour’s election victory, Reynolds will address a G7 meeting of trade ministers in Reggio Calabria, Italy, emphasizing the UK government’s desire to cultivate a “closer, more mature relationship with our friends in the EU.”
Reynolds aims to mend relations after a turbulent period under successive Conservative administrations since the 2016 Brexit vote. He will convey to international ministers that Britain is “back on the world stage and ‘open for business’.” He will further express the UK’s intention to develop a closer, more level-headed relationship with the European Union, the UK’s nearest and largest trading partner, while also enhancing trade relations globally.
These discussions coincide with Keir Starmer’s efforts to strengthen ties with Brussels by hosting EU leaders at Blenheim Palace near Oxford for a one-day European Political Community summit. The prime minister is balancing the enhancement of EU relations while reassuring voters that the UK will not re-enter the single market or customs union, focusing instead on modest reforms and a more cooperative tone with Brussels.
During the election campaign, Starmer maintained that the UK would not rejoin the EU within his lifetime. Labour’s manifesto, however, pledged to build stronger trade and investment links with the EU, including a veterinary agreement, support for touring artists, and mutual recognition deals for professional qualifications.
In 2023, the EU was responsible for 41% of UK exports and 52% of imports. Business leaders have urged Starmer to strengthen links with Brussels due to the EU market’s importance to UK companies and have called for more flexible migration rules to access EU workers.
Under the Brexit deal finalized by Boris Johnson’s government in December 2020 and in effect since January 2021, the UK and the EU agreed to review the deal’s implementation every five years, with the first review expected under Starmer’s oversight in 2026. Some commentators see this review as a chance to renegotiate the deal, although EU officials believe the scope for change may be limited.
Reynolds is set to have his first in-person meetings with G7 counterparts, including the EU Commission Vice-President Valdis Dombrovskis and German Vice-Chancellor Robert Habeck. The new government hopes that resetting international relations will enhance Britain’s status among global businesses and investors, contributing to efforts to achieve the highest sustained economic growth rate in the G7.
These efforts come amid rising geopolitical tensions and political uncertainties. US President Joe Biden recently expressed support for Starmer’s goal of closer EU ties, indicating that this would also strengthen the transatlantic alliance with Washington.
