Key facts
- Closer EU trade ties offer a greater economic prize for the UK than independent trade deals, says Scotland Secretary Douglas Alexander.
- Alexander believes geography makes the EU the UK's largest trading partner, with trade volume nearly double that with the US.
- He stated that the long-term boost to UK GDP from CPTPP membership is less than a tenth of 1%.
- Alexander described post-Brexit promises of a free-trading Britain as 'post-imperial delusions' in a more protectionist world.
- Business Secretary Jonathan Reynolds stated he would not impose tariffs on Chinese EVs due to EU pressure.
Britain would benefit more from significantly closer trade relations with the European Union, even if it meant relinquishing its ability to negotiate independent free trade agreements, according to Scotland Secretary Douglas Alexander.
Alexander, who previously helped negotiate trade deals with India and the US as a trade minister under Keir Starmer, told The Guardian that joint trading arrangements with the EU, whether through a customs union or full membership, would represent a larger economic prize. He highlighted that the EU has recently secured its own similar trade deal with India.
He emphasized the enduring importance of geography in trade policy, noting that the 21-mile-wide Channel separates the UK from its largest trading partner, the EU, with which it trades almost twice the amount compared to the United States. Alexander, who was not a supporter of leaving the EU, described the Brexiteers' promises of a global free-trading Britain as 'post-imperial delusions,' contrasting them with the current reality of a more protectionist and regionalized world with rising barriers.
He pointed to UK analysis suggesting that the long-term boost to GDP from joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is less than a tenth of 1%, a fraction of the estimated structural damage to the UK economy caused by Brexit. Alexander stated that the UK is already paying an economic price for new barriers to its European neighbors.
Speaking from Mumbai, where he was accompanied by Business Secretary Jonathan Reynolds, Environment Secretary Angela Eagle, and several mayors, Alexander acknowledged progress and ongoing discussions regarding "teething problems" and non-tariff barriers in the UK's trade deal with India. He indicated that ministers are working with Indian officials to address these implementation issues, particularly for smaller businesses.
Meanwhile, Business Secretary Reynolds stated that he would not impose tariffs on Chinese electric vehicles simply due to pressure from Brussels, despite concerns that the UK could become a backdoor into the European market.