The UK and EU should build on the recently refreshed political goodwill between its leaders and use the upcoming review of the post-Brexit trade agreement to form a long-lasting trading relationship built on trust and cooperation.
This is according to a new report from the Chartered Institute of Export & International Trade that’s been launched at a breakfast event in Parliament this morning (8 September).
Critical moment
“This report comes at a critical moment,” said the Chartered Institute’s director general, Marco Forgione, at the gathering of MPs, business leaders and policymakers in the House of Commons today.
“We are now five years into the UK-EU Trade and Cooperation Agreement (TCA), ten years on from the UK’s decision to leave the EU, and it’s clear that businesses, especially SMEs, still face significant challenges when trading with our closest and largest partner.
“However, as our report identifies, there are significant opportunities to make trade work better for both UK and EU exporters, reducing friction and restoring the conditions for growth.”
Mike Reader, the co-chair of the All-Party Parliamentary Group for Trade and Investment, and Nick Thomas-Symonds, the minister for EU relations, also spoke at the launch event.
Time for a review
Under the terms of the TCA, the UK and EU are due to review the implementation of the post-Brexit trade deal in 2026.
While the nature of the review is loosely defined, there is optimism that both sides will be keen to work closely together to better facilitate post-Brexit trade.
This is in part due to the restored goodwill between London and Brussels that was in evidence at the UK-EU Leaders’ Summit in May this year, that was convened by British prime minister, Sir Keir Starmer, as part of his government's efforts to “reset” the relationship.
The two sides made a series of commitments at the summit, including a new agreement on fisheries and an agreement to create a new Common Sanitary and Phytosanitary (SPS) Area to reduce trade friction for agrifoods businesses.
Practical recommendations
The report, written in partnership with Independent Economics, makes a series of long-term strategic and practical recommendations to British and European policymakers to make the most of this review.
These include aligning the UK’s Trade Strategy with the EU Customs Reform programme, simplifying rules of origin in the TCA and making the most of trade digitalisation opportunities.
“These are not political flashpoints,” said Forgione.
“They are practical trade issues, with practical solutions. By reducing the red tape and rebuilding cooperation in key areas, we can unlock opportunity for businesses in every region of the UK and turbocharge momentum for our exporters.”
Open trade mission
Forgione said that the report was the result of months of consultation with the Chartered Institute’s membership, its wider community of internationally trading businesses, and leading trade policy experts in both the UK and EU.
“Our members believe that the world is their marketplace, but they also believe in real-world results,” he said.
He also highlighted that the UK and EU share many strategic opportunities and challenges, and should be united by their common belief in the value of open, frictionless trade.
“What’s needed now is a renewed focus on fixing the fundamentals, and that starts with rebuilding confidence in our economic relationship with the EU.
“If we get this right, we can show the world that open trade, economic patriotism, and partnership are not mutually exclusive: they are the future of growth.”
You can download the Chartered Institute's new report, 'Reimagining UK-EU Trade and Cooperation', here.
