Not a Brexit reversal: UK seeks closer EU ties to cut trade barriers
The government says the move is about easing the economic friction that followed Brexit by improving trade with the UK's largest collective trading partner.
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LONDON: Britain is seeking closer alignment with the European Union in a bid to reduce post-Brexit trade barriers, lower costs for businesses and consumers, and revive economic growth nearly a decade after leaving the bloc.
The government has said the move is not about reversing Brexit, but about easing the economic friction that followed by improving trade with the United Kingdom's largest collective trading partner.
The policy has reignited a long-running debate over how much regulatory independence Britain is willing to sacrifice for easier access to European markets.
Critics say that closer alignment could force the UK to comply with EU rules that it no longer has a say in shaping.
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The issue comes nearly a decade after the Brexit referendum on Jun 23, 2016, when the UK voted to leave the EU.
THE BREXIT TRADE-OFF
Economists estimate Brexit has cost the British economy between US$200 billion and US$300 billion in lost growth.
Now, Westminster believes closer cooperation with the EU in key industries could help recover some of that lost economic activity.
One proposal focuses on plant and animal health. If the UK aligns its rules more closely with EU standards in this area, officials hope to reduce costly inspections and paperwork for British food exporters to the bloc.
Britain and the EU still maintain broadly similar standards in the sector.
But since 2020, the two sides have gradually diverged on issues ranging from listeria testing requirements to pesticide limits.
Industry groups warn that a sudden shift to EU rules could create serious challenges for farmers.
CropLife UK, a trade association representing the plant science and crop protection industry, said any transition must be carefully managed.
Its CEO Dave Bench said: “If you do that immediately with no chance for growers to plan, to think about alternatives, to think about how they might grow different crops or grow crops in different ways, then potentially you make it impossible for them to grow the crops that they’d intended to do so.”
UNCERTAINTIES REMAIN
Another key area under negotiation is electricity trading.
If the UK regains access to the EU’s automated electricity market, power could flow across borders in real time according to supply and demand, replacing slower trading arrangements introduced after Brexit.
“Anything that can be done to harmonise the commercial or regulatory environments within and between the two markets, will help to remove non-physical barriers to trade and therefore reduce costs,” said Richard Woolley, energy and climate change policy adviser at the Chemical Industries Association, which represents chemical and pharmaceutical firms across the UK.
“That will keep prices down for everyone on both sides of the channel.”
Some businesses are also pushing for closer cooperation on carbon pricing.
But industry groups caution that negotiations are moving ahead while key details remain uncertain.
“The EU is set to kick off a major review of their emissions trading scheme,” said Woolley. “So we won’t know what we’re linking to for another nine months.”
BEYOND FINANCIAL COSTS
The government argues that deeper cooperation with the EU is in Britain’s national interest.
But the proposals have drawn criticism from some Eurosceptic lawmakers – particularly over the only major non-trade measure under discussion: rejoining the Erasmus+ exchange programme.
Erasmus+ enables students and other learners from participating countries to study, train or undertake placements abroad.
The UK withdrew from the programme following Brexit and launched the Turing Scheme as its replacement in 2021.
Unlike Erasmus+, which is primarily focused on European mobility, the Turing Scheme supports placements around the world.
Critics argue that rejoining Erasmus+ – which is expected to cost the UK around £570 million (US$760 million) in the 2027/28 academic year – would be significantly more expensive than the Turing Scheme and represents an unnecessary concession to Brussels.
Supporters, however, say the benefits go far beyond the financial costs.
Jude Waites, regional coordinator of the Erasmus Student Network, said: “Erasmus+ and the idea of EU students coming to study in UK universities has been proven to provide massive economic benefits (and) also benefits to home students in the UK who, whilst they might not choose to study abroad, are able to experience a diverse range of different views.”
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