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Starmer signals new approach to EU relations
British Prime Minister Sir Keir Starmer outlined a strategic pivot in the UK's post-Brexit relationship with the European Union on Saturday, prioritizing closer ties to the single market over rejoining the customs union. The move aims to address concerns from businesses, EU capitals, and his own party while preserving recent trade agreements with the US and India.
Customs union off the table
Starmer dismissed calls to rejoin the EU customs union, a proposal backed by Labour backbenchers, union leaders, and Liberal Democrat MPs in a non-binding parliamentary vote last year. In an interview with BBC's Laura Kuenssberg, he emphasized that the UK's recent trade deals-including agreements with the US, India, and prospective Middle Eastern partners-would not be jeopardized by such a move.
"We are better looking to the single market rather than the customs union for our further alignment."
Sir Keir Starmer, UK Prime Minister
Single market alignment as priority
Since the UK's formal departure from the EU single market and customs union at 11 p.m. on 31 December 2020, trade barriers have hindered British exporters. Starmer's "Brexit reset" seeks to reduce friction by aligning with EU regulations in three key areas: food and agricultural exports, electricity trading, and emissions standards. Further sectors, including automotive, chemicals, and VAT arrangements, could follow.
The British Chambers of Commerce (BCC) recently reported that 989 of its surveyed members found the UK-EU trade deal ineffective in boosting sales growth, underscoring the urgency of regulatory alignment.
EU response and stalled initiatives
European leaders have expressed disappointment with the UK's cautious approach, particularly after rejecting proposals for virtual readmission to the single market. While progress has been made on rejoining the Erasmus university exchange and negotiating a youth jobs scheme, other initiatives remain stalled. A UK bid to join the €150 billion (£131 billion) Security Action For Europe defence fund has been delayed due to disputes over membership fees, with France raising objections. Canada has since joined the scheme.
Geopolitical and domestic pressures
Insiders suggest the UK's evolving stance is partly influenced by the US National Security Strategy (NSS), published last month, which called for "cultivating resistance to Europe's current trajectory" and praised the rise of "patriotic European parties." Domestically, Labour faces pressure from the Liberal Democrats and the Green Party, which is targeting Labour's London strongholds in upcoming May council elections.
Starmer's shift reflects a convergence of economic, political, and geopolitical factors as the UK approaches the 10th anniversary of the Brexit referendum later this year.
