Minister who helped negotiate the India and US deals says closer EU ties are worth more

Alexander's case rests on distance and volume, and he made it in plain terms. "In trade policy, geography still matters," he said, adding that Britain trades "almost twice the amount with the European Union that we do with the United States, the largest single-country trading partner." ^[6] He also argued that the world Brexit's backers promised did not arrive. What followed, he said, was "a more protectionist, more regionalised world in which barriers have been going up." ^[15]

The price is stated openly. Alexander said Britain would benefit from much closer trading relations with the EU even if that meant giving up its ability to negotiate free trade agreements. ^[1] Under Starmer, ministers used that price as their argument against rejoining: re-entry would mean abandoning trade agreements with other countries. ^[4] Alexander helped negotiate the India and US deals as a trade minister, and he now accepts the price. ^[2] The Guardian says his remarks show how far Burnham has moved the government's position. ^[16]

The separate-deal route also has running costs. Ministers in Mumbai, among them Reynolds and Eagle, spent much of their time with Indian officials on what they call "teething problems" in early implementation, especially for smaller businesses. ^[10] Alexander said talks on regulation are meant to overcome non-tariff barriers that "can prove to be an inhibitor to the kind of progress we want to see unless they're addressed." ^[11]

The firmer limit comes from the summit agenda. According to the Guardian, many in government say the bigger prize is what Burnham hopes to sign at next month's EU summit: new deals covering emissions, electricity and farm products. ^[12] The UK wants to discuss the "Made in Europe" policy, and British manufacturers fear the policy will lock them out of an important market. EU leaders have said they are open to talks on Britain joining the scheme. They are also pushing the UK to impose tariffs on Chinese electric vehicles, worried that without them the UK would serve as a back door into Europe's market. ^[13] Reynolds told the Guardian this week that pressure from Brussels alone would not lead him to impose tariffs. ^[14]

We think the record supports a narrower reading than a move to a customs union. Alexander made clear he did not support any particular method of closer relations. ^[9] Burnham's call is for dialogue, and the Guardian's account does not include a timetable for it. In our view the electric vehicle request previews the terms closer alignment would carry, because Brussels is asking the UK to match its trade defences. For a UK-exposed operator, the item with a date this quarter is the summit text. A customs-union decision, if it comes, belongs to a later quarter.