Reeves calls on EU to drop ‘unnecessary’ trade barriers with UK

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Rachel Reeves has called on the EU to drop “unnecessary” trade barriers with the UK to boost economic growth, on a landmark visit to Brussels.

The UK chancellor told journalists before the meeting of Euro area countries that she aimed to persuade fellow finance ministers to improve the post-Brexit relationship, given that both the UK and EU have “struggled” with growth.

“The number one mission of this government is to grow the economy and . . . to see people’s living standards improve,” she said.

“And the truth is, these unnecessary barriers to trade are one of the things that will contribute to the deterioration of living standards and making it harder for British businesses to be competitive on the global stage.”

She added: “We all want to see our economies grow faster and be more competitive globally . . . One way to do that is to reduce some of the barriers to trade. And that’s one of the arguments I’ll be making when I meet my European counterparts later today.”

Formal talks on a UK-EU “reset” should begin next year, and Reeves said she hopes Sir Keir Starmer’s Labour administration can build trust after the “chaos and the division” created by the previous Conservative governments.

Reeves is the first UK chancellor to attend an EU meeting since the UK left the EU.

Great Britain — which excludes Northern Ireland — left the single market and customs union, leading to a steep increase in bureaucracy and border checks for businesses. Many have stopped selling to the EU or been cut out of supply chains.

Starmer’s government has ruled out rejoining the single market and customs union, which would eliminate barriers but would open the UK up to higher levels of immigration. 

The UK has promised to reach a deal on animal and food standards with the EU that would reduce checks. But the EU has indicated this would require London to mirror the bloc’s farming rules — a controversial topic among Brexit supporters because it would make it difficult to strike trade deals with the US or other partners with different standards.

The EU has its own agenda for the reset. It has said it is willing to discuss a veterinary deal, though a leaked document seen by the Financial Times proposes the UK should pay a financial contribution towards the cost of checks.

Brussels is also finalising the offer of a “youth experience scheme”, which would give 18 to 30-year-olds the right to live and work in the EU and UK for three years.

The UK has so far rejected the measure as a return to free movement of people. Officials say the priority is to get British people working rather than import labour.

The EU has also insisted the UK implement fully an agreement on goods trade with Northern Ireland, which remains in the single market, before deepening ties. Reeves will promise to do so in her speech.

It is also demanding continued access to UK fishing waters after it expires in the middle of 2026 as a condition for serious talks on other issues.

During her visit, Reeves will also speak to EU budget commissioner Piotr Serafin, and the German and Dutch finance ministers, and will discuss support for Ukraine among other issues.

“Obviously I’m representing the British national interest and we’ll always fight for that,” she said. “But the British national interest means having a close relationship, particularly trading relationships, but also on security, too, with all our neighbours and partners in the European Union.”