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Rachel Reeves has urged the EU to remove unnecessary trade barriers with the UK to stimulate economic growth on her visit to Brussels.
The UK chancellor expressed her goal of enhancing the post-Brexit relationship with fellow finance ministers in the Euro area, emphasizing the importance of economic growth and improving living standards.
Reeves highlighted the negative impact of trade barriers on living standards and the competitiveness of British businesses globally, stressing the need for their reduction.
She stated, “We all aspire to accelerate economic growth and enhance global competitiveness. One effective approach is to eliminate trade barriers, a point I will emphasize in my discussions with European counterparts today.”
Formal discussions for a UK-EU “reset” are scheduled to commence next year, with Reeves expressing hope for the Labour administration led by Sir Keir Starmer to rebuild trust after the divisive policies of previous Conservative governments.
Reeves marked a historic moment as the first UK chancellor to attend an EU meeting post-Brexit.
Following the UK’s exit from the single market and customs union, businesses have faced increased bureaucracy and border checks, impacting trade with the EU.
While ruling out rejoining the single market and customs union, Starmer’s government aims to strike a balance between eliminating barriers and controlling immigration levels.
Efforts are underway to negotiate a deal with the EU on animal and food standards to ease checks, although differences in farming regulations pose challenges for trade agreements with other nations.
The EU has proposed a veterinary agreement and a “youth experience scheme” for young adults to live and work in the EU and UK, with the UK emphasizing the need to prioritize local employment over importing labor.
The EU has emphasized the need for the UK to fully implement the Northern Ireland goods trade agreement before advancing discussions. Reeves intends to address this commitment in her speech.
Additionally, the EU is seeking continued access to UK fishing waters post-2026 and discussions on other issues.
During her visit, Reeves will engage with EU officials on various matters, including support for Ukraine, while advocating for close trading and security relationships with EU partners.