Sir Keir Starmer will pursue an “ambitious” twin-track strategy to build closer UK trade and security ties with the EU if his Labour party wins the next general election, but his allies insist he will not cross his three Brexit “red lines”.
The Labour leader will rule out Britain rejoining the EU single market, the customs union or adopting free movement in Labour’s manifesto, according to senior Labour figures, giving him political cover for a lower-profile pursuit of co-operation in a range of areas.
“The red lines will be in the manifesto and won’t change,” said one senior Labour figure. “But are we ambitious behind those red lines? Of course we are. We want to deepen the relationship.”
Senior Labour officials and Brussels diplomats believe a Starmer election victory will open the door for a twin-track approach to strengthening ties, with a debate now raging on what a new deal might look like.
The first track would see Labour seek a defence and security pact with the EU, widening the standard definition to cover areas such as migration, linking emissions trading schemes to tackle climate change or joint agreements on critical raw materials.
A second track would involve Starmer trying to build on the principle of a proposed veterinary deal with the EU — under which Britain would align with the bloc’s rules to facilitate trade in foodstuffs — to cover other areas of trade.
“If you start to reduce trade barriers in the veterinary area, you start to build a closer trading relationship with the EU,” said a close ally of Starmer.
European diplomats argue that regulatory alignment is desirable in areas such as data and pharmaceuticals. Mobility deals for students and young people could also be part of the mix, but only on a pan-EU basis.
Speculation about Labour’s post-Brexit strategy has intensified in recent weeks, as the prospect of a sizeable Starmer majority after an election expected later this year has grown.
The future shape of the UK-EU relationship under a Starmer government was discussed in early March at a two-day retreat for EU ambassadors at Stansted Park, an Edwardian stately home in West Sussex.
The Financial Times has spoken to four people who were present at the meeting and who spoke on condition of anonymity because it was a private gathering.
Lord Peter Mandelson, the former EU trade commissioner and Labour cabinet minister, outlined in a keynote speech the party’s approach to Europe if it was to win power.
“Mandelson said the party leadership had to be very cautious in public about its red lines on the single market and customs union, but also said that privately there was more flexibility on areas like dynamic alignment with EU rules and submitting to the jurisdiction of the European Court of Justice,” said a person familiar with the contents of the speech.
Mandelson said Labour might also look to deepen the relationship with a veterinary agreement and by relinking with the bloc’s carbon trading market in order to avoid frictions caused by the introduction of the EU’s new carbon tax in 2026.
A second individual who participated in EU-UK policy discussions during the meeting said there was “a lot of interest” from EU ambassadors on Labour’s likely position on a customs union after an election. “I was struck at the time by how many questions were asked on this point,” they added.
A paper from the Eurasia Group political consultancy this week cited unnamed “senior Labour insiders” saying the party could enter a de facto customs union with the EU if it won the general election — an idea vehemently denied by Labour.
A customs union would smooth trade for EU companies and help maintain supply chains for carmakers and would therefore be welcomed by most member states. However, the terms would be set by Brussels.
Turkey formed a customs union with the EU in 1995 allowing free movement of industrial and processed food products. But Ankara is trying to convince Brussels to upgrade it to allow free movement of truckers, who are delayed by visa checks at the border, and include digital products and services.
If the UK rejoined the customs union it would have to change trade deals with Australia and membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, for example, to reimpose EU tariff levels.
Sir David Lidington, former Tory Europe minister, said he doubted Starmer would break his election pledge, not least because it would be complex and require Britain to rip up post-Brexit trade deals.
Meanwhile, there was also a general agreement among EU diplomats at the meeting that the five-year technical review of the existing EU-UK Trade and Cooperation Agreement, due in 2026, would not be the best vehicle for deepening the relationship.
“If the UK wants something deeper, that would be a separate discussion, but there is a widespread expectation now that that’s where Starmer is headed by midway through this first term,” a senior EU insider said. “And if Labour wants that, we can talk about it, but it’s also not a ‘free gift’ — a different relationship will come with different obligations.”
Mujtaba Rahman of the Eurasia Group consultancy said there was excitement in Brussels about the prospect of a Labour government: “If Starmer’s majority is big and it looks like a two-term government, the EU will also be more willing to make a bigger investment in the relationship,” he added.
One senior EU diplomat said that while “some people in Brussels are still traumatised by Brexit, the geopolitical context has changed completely”, referring to how Russia’s invasion of Ukraine has reinforced the need for European unity.
“Keir Starmer says he wants Britain to have the fastest growth in the G7 — well it’s hard to see how he does that without a closer relationship with the EU,” the diplomat said.
Lidington, who has close contacts in EU circles, said he thought Labour was going “to make a big offer on defence and security co-operation, which in my view is very sensible”.
“I think a Labour government will try for a veterinary agreement, as they have said, and quietly align with EU standards in a number of sectors,” he added.
Nick Thomas-Symonds, the shadow minister charged with negotiating future EU relations, told the FT: “Within our red lines Labour will work to improve the UK’s relationship with the EU in specific ways, including through seeking a veterinary agreement to help tackle trade barriers and help get food on the table, mutual recognition of professional qualifications and improved touring opportunities for musicians.
“Labour would also work to establish an UK-EU security pact, to complement Nato and strengthen European security,” he said.
Source: Economy - ft.com
