Labour Party in UK to Revisit Brexit Deal for Improved EU Trade Links
In an interview with the Financial Times on Monday, Rachel Reeves, the finance spokesperson for Britain’s Labour Party, indicated that if the party wins power in the upcoming general election, they would revisit the Brexit deal to enhance trade links with the European Union. However, she clarified that Labour would not consider rejoining the EU’s single market or customs union, nor would they entertain any deal on freedom of movement or youth mobility.
Reeves emphasized that Labour’s focus would be on improving the trading relationship with Europe and exploring trade deals with countries around the world. She mentioned that closer alignment with EU rules in sectors such as chemicals and financial services could be on the agenda. Reeves also highlighted the importance of a “bespoke” regulatory arrangement for the chemicals industry to avoid additional costs.
The UK officially left the EU at the beginning of 2021 after a 2016 referendum in which Brexiteers campaigned on the promise of regaining control from Brussels, particularly in terms of immigration. However, the aftermath of Brexit has not delivered the anticipated economic benefits and instead led to trade disruptions, labor shortages, rising company costs, and inflation.
Should Labour defeat Prime Minister Rishi Sunak’s governing Conservative party in the general election scheduled for July 4, Reeves is poised to take on the role of UK government finance minister.
