EU Trading Relationship

Rachel Blake Excerpts

Thursday 24th April 2025 Westminster Hall

[Steve Race (Exeter) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I commend my hon. Friend the Member for Welwyn Hatfield (Andrew Lewin) for securing this debate.

As Members have stated so eloquently, it is time for a pragmatic reset of our relationship with our nearest neighbours and oldest partners. This is not about reopening old wounds, but about fixing the harm done to our economy and our security by mistakes under the last Government and recognising that our future prosperity can be improved with better UK-EU relations.

As Government Members referenced in our joint letter to the Secretary of State, we live in a period of increasing global instability. Certainties based on the post-world-war-two rules-based systems of trade are breaking down, and our stability, prosperity and security rely on having deep and resilient partnerships with like-minded nations. Therefore, we will be stronger when we work with, not against, our neighbours. That principle must guide our approach to Europe.

We already see the benefits of co-operation in the emerging UK-European defence partnership: standing together with Ukraine in the face of Russian aggression, bolstering European security, and demonstrating that our shared values of democracy and the rule of law are more than just words. This is an area that must be deepened for the good of our joint defence and security.

Trade, too, should be an urgent area for renewal. There are many areas of UK-EU trade that we should aim to ease, and they have been referenced throughout the debate. One area that should be looked at anew is the pan-Euro-Mediterranean convention. It is already used by many of our European neighbours, and it offers a model for streamlined trade across borders without being a member of an EU institution. It simplifies rules of origin, cuts red tape and helps goods move faster. The Government should be proactively exploring our alignment with this system. It will be good for many SMEs in Exeter.

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

In addition to trade and the important points that have been made about defence, does my hon. Friend agree that we should also consider a cultural touring agreement? That would support cultural organisations across the country, including the Barbican, the Royal Opera House and those in the west end. Not only would it help them and their business, but it would encourage people to come to London, and it would support economic growth across the country.

[Steve Race]

I thank my hon. Friend for that intervention. That would very much help the cultural institutions in my Exeter constituency, too, so I absolutely agree.

Since the end of the transition period, UK exports to the EU have faced barriers that did not exist before, with small businesses disproportionately hit. According to the OBR, our overall trade intensity has fallen by 15% compared with where it should have been. This is not inevitable; it was a policy choice by the last Government, and this Government can and should choose differently.

Closer economic ties mean growth. They mean investment in green energy, digital infrastructure and research, which are all sectors in which Exeter is already leading the way. They could now also mean opportunities for our next generation of young people to study, work and thrive across our shared continent.

This is not about going back. It is about going forward clear-eyed, ambitious for our future and in partnership with those who share our values and interests. My residents in Exeter deserve that future, our country deserves that future, and I encourage the Government to be ambitious for that future at the next summit.