EU Trading Relationship Debate

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Department: Cabinet Office

EU Trading Relationship

Liam Byrne Excerpts
Thursday 24th April 2025

(1 day, 15 hours ago)

Westminster Hall
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Liam Byrne Portrait Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
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I congratulate my hon. Friend the Member for Welwyn Hatfield (Andrew Lewin) on securing this debate, on his superb speech and on the impact that he has made in this House.

We are all history’s witnesses to a radical reshaping of the western alliance. Yesterday, the United States Treasury Secretary said:

“‘America First’ does not mean America alone.”

But if we look beyond the rhetoric to the reality, it is very clear that what Churchill called the sinews of peace are now under tremendous strain. America is now exiting the multilateral alliances that it created under Presidents Roosevelt, Truman and Eisenhower between 1944 and 1960. What some have called Amexit must now force us to rethink Brexit. We have to look again at resetting our alliance with our closest neighbour.

I draw the House’s attention to the draft Green Paper that we think the Government should have published: the report published by the Business and Trade Committee on 4 April, which sets out 20 ways in which we think we can reset our relationship with our closest neighbour, spanning defence, regulation, energy co-operation, services and innovation. There are 20 measures across that space that could give us as big an economic boost as is needed to offset the cut from tariffs. They include an EU-UK defence pact, a shared industrial policy, a joint plan to defend critical national infrastructure and deeper co-operation to defend ourselves against economic threats; an ambitious sanitary and phytosanitary agreement, the mutual recognition of customs schemes and of conformity assessments, streamlining customs declarations at the border, enhancing co-operation at our ports and rejoining the pan-Euro-Mediterranean convention; and making sure that we have long-term regulatory road maps to maximise the alignment between sectors in our economy and in the EU. We found that there is widespread support for that across the business community in the UK, and in the European Union too.

The fourth big area is energy, which is one of the biggest opportunities for deeper co-operation between the UK and the EU. We need to avoid the cliff edge that may come when the carbon border adjustment mechanism is introduced in this country and Europe. We should join together to create a single CBAM. We should be linking our emissions trading schemes and reconnecting our electricity markets because that will ultimately help to drive down electricity costs in this country.

In the fifth area—services and innovation—it is clear that we have to secure a new data adequacy agreement. We have to advance co-operation in financial services and research, including by restoring mutual recognition of qualifications with a new road map that might actually make some progress. We have to strike a fair deal for our touring artists, and I absolutely agree with my hon. Friend about the need for a visa-based, time-limited and number-capped scheme for youth mobility—that is also in our mutual interest.

What surprised us most is that it was not difficult to find 20 different measures across those five areas of co-operation where we can deepen our future relationship. That reset is now imperative if we are to reset the UK’s power in the world and, crucially, deliver prosperity for the people we came here to serve.