Rebuilding Bridges: UK’s Vital Step to Revitalize Trade with the EU

The governor of the Bank of England, Andrew Bailey, has emphasized the urgent need for the UK to ”rebuild” its trade relationship with the European Union following a recent trade deal with the US. In a statement to the BBC, he expressed that, while he remains neutral on Brexit, restoring the trade ties lost post-Brexit would be ”beneficial” for the economy.

Currently, the UK government is in negotiations with the EU to reset their trade and security relationship ahead of an upcoming summit. The agreement with the US has opened new opportunities, allowing the UK to pursue a veterinary agreement with the EU that would align standards to reduce post-Brexit red tape on exports of food, farm products, and fish.

Key points of the recent US-UK agreement include reduced import taxes on select British cars and tariff-free entry for certain steel and aluminium products into the US, although a 10% duty remains on most UK goods. Bailey pointed out the significance of enhancing trade with the EU, the UK’s largest trading partner, stating that increasing access and cooperation would positively impact the economy and help mitigate inflationary pressures.

He underscored the necessity of ensuring that Brexit-related decisions do not compromise the long-term trade position of the UK. In this context, Bailey believes that the current trade arrangements are a demonstration of how trade deals can be both possible and beneficial. He concludes with optimism, hoping these trade deals will contribute to revitalizing the global trading system.