EU Trading Relationship

James MacCleary Excerpts

Thursday 24th April 2025 Westminster Hall

[James MacCleary (Lewes) (LD)]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I add my congratulations to the hon. Member for Welwyn Hatfield (Andrew Lewin) on securing this timely debate, and thank all hon. Members for their well-informed contributions. The debate has shown that the discussion has moved on from whether we need to improve our trading relationship with the European Union to how we improve the relationship. That is an important step in the right direction.

It is beyond dispute that our current trading relationship with the European Union has profoundly damaged our economy. Businesses across the country—small businesses, farmers and fishers—have borne the brunt of the Conservatives’ botched Brexit deal. They face layers of unnecessary red tape and barriers that strangle trade, dampen growth and undermine prosperity. The numbers speak for themselves: British exports to the EU fell sharply after Brexit and have yet to recover, remaining 11% below their 2019 levels, and astonishingly, four out of every 10 British products once stocked on EU shelves have now vanished. The impact on farmers and fishers is starkly illustrated by the leap from a single, simple form to an absurd 21-step bureaucratic nightmare, which leaves our produce literally unable to cross the channel. British sausages, which were once sold freely from Paris to Berlin, are now banned outright—an absurd situation that captures perfectly the farcical outcome of the disastrous deal negotiated by the last Government.

This is not merely about statistics; it is about livelihoods. I speak regularly to small businesses in my constituency. They tell me directly that their market shrank overnight, while the complexity and cost of doing business with the rest of Europe ballooned. Our farmers face financial uncertainty, and fishers, including my local fishing fleet in Newhaven, having been promised prosperity by Brexit campaigners, now struggle under an avalanche of paperwork and export costs, which put their livelihoods at risk.

We urgently need a new approach—a pragmatic, ambitious plan to rebuild our relationship with Europe and reinvigorate our economy. Disappointingly, the new Government appear to lack precisely the ambition we need. They have ruled out even common-sense measures, including, as recently as today, a youth mobility scheme, which could restore opportunities for young Britons to live, work and study abroad. This Government are wrapped in their self-defeating red lines, which seem designed more to please the leadership of Reform UK than to benefit British business and growth.

I was glad to see this morning that the hon. Member for Welwyn Hatfield and 70 of his colleagues have signed a letter calling for a youth mobility scheme—it is encouraging to see that kind of resolve across the House —but contrast that with the Government’s response. When my hon. Friend the Member for Richmond Park (Sarah Olney) questioned the Government on it earlier, the answer was a resounding no. When are this Government going to get serious? If we do not show clear and consistent intent in time for the EU-UK summit in May, the EU will simply move on.

We cannot afford to squander what good will remains. That is why the Liberal Democrats have proposed a clear, four-step road map to heal our fractured ties with Europe, starting immediately with unilateral steps to restore good will and trust, which must include re-engaging proactively in vital foreign policy dialogues. We then need to rebuild confidence by rejoining crucial European programmes such as Erasmus+, participating actively in scientific collaborations, and reconnecting with a central body—the European Union Aviation Safety Agency, for example.

Central to our economic recovery must be deeper trade co-operation, particularly through a comprehensive veterinary and plant health agreement and the mutual recognition of professional qualifications. Those measures would immediately remove significant barriers to British businesses. Most important, we must place ourselves firmly on the path to negotiating a robust customs union by 2030. That step alone would remove needless checks and bureaucracy at our borders, injecting desperately needed momentum back into our economy.

It is vital to understand what a customs union could achieve. It means tariff-free streamlined trade for most goods—a practical, proven solution already successfully embraced by other countries outside the EU. A customs union would place Britain back at the heart of European trade, boost our economy and insulate us from unpredictable global disruption—especially from the protectionist forces emerging in the United States. Even a signal from this Government that they are open to a customs union would boost markets and stimulate growth. Recent experiences under Trump’s aggressive tariff regime have clearly demonstrated the need for leverage in global trade discussions, and that is something that a customs union with our largest and nearest trading partner could provide. Instead of begging for special deals with America, we could strengthen our relationship with Europe, rebuilding from a position of strength rather than weakness.

We cannot afford more timid half-measures or missed opportunities. British businesses, workers and young people deserve better. The Liberal Democrats are clear and unwavering: we must restore confidence, rebuild trust and revitalise our economic ties with Europe. The public are watching: will this Government be defined by cuts to international development and winter fuel payments for pensioners, and job-killing taxes on small businesses, or will they instead take the hard-headed, pragmatic decision to ditch their disastrous red lines and enter into negotiations for a customs union, so that Britain can truly regain the strong, prosperous economy its citizens deserve?