Rachel Reeves, the UK’s Chancellor of the Exchequer, emphasized that the United Kingdom’s trade relationship with the European Union is a higher priority than its economic ties with the United States. She followed on this claim a few days ago, right before her historical meeting in Washington, DC, with US Treasury Secretary Scott Bessent. This announcement is particularly timely, as both areas face the challenge of a new economic environment following Brexit.
Reeves highlighted the significance of the EU as the UK’s nearest neighbors and trading partners, stating, “I understand why there’s so much focus on our trading relationship with the US but actually our trading relationship with Europe is arguably even more important.” She stressed the need for Council to get to work on restoring a positive relationship with the EU, for the sake of British jobs and consumers.
In a few weeks, the UK and the EU are both expected to meet to negotiate an agreed post-Brexit reset during a long-planned summit. The agenda is the most ambitious ever, covering core themes like a sanitary and phytosanitary agreement. This deal would remove the remaining checks on UK exports to the EU. They will include negotiations over a proposed pact to eliminate carbon emissions. This step will bring the UK’s priorities much more in line with its European peers.
Reeves expressed optimism about securing a trade deal with the US but underscored the need for political and fiscal stability to make that possible. She stays in constant touch with such finance ministers of European countries as those of France, Germany, Spain, Poland, Sweden and Finland. This pledge emphasizes her commitment to fostering vital international ties.
The backdrop of this discussion includes challenges posed by previous tariffs imposed by US President Donald Trump on UK exports, notably on “Liberation Day,” when Trump announced reciprocal tariffs with US trading partners globally.
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