In its 2024 election manifesto, the Labour Party promised to “reset the relationship” between the UK and the EU.
But seven months on, there seem to be more red lines than clear signs regarding what that even means…
What has Labour said?
Labour’s election-winning manifesto promised to reset ties with Europe after years of a strained relationship under the Tories, but it is still not clear exactly what this will look like in practice.
Sir Keir Starmer has been adamant there will be no return to the single market, customs union or freedom of movement, and the prime minister has previously ruled out a youth mobility deal.
Instead, the manifesto pledged to “negotiate a veterinary agreement to prevent unnecessary border checks and help tackle the cost of food”.
However, details of this have remained vague.
Pressed on this by Sky News’ Sunday Morning With Trevor Phillips, Home Secretary Yvette Cooper said the UK wants stronger trading relationships all over the world but said a customs union is one of the government’s “red lines”.
What is a customs union?
A customs union is an agreement between countries to apply the same tariffs to goods imported into their territory from the rest of the world, and apply no tariffs internally.
It is not the same as the single market, which goes further – by also allowing for the free movement of people, services, and capital in the EU.
The EU Customs Union has been in place since 1968, but since the UK left the bloc, trade barriers have been erected which has added to costs for companies moving goods between the UK and Europe.
Negotiating a new customs union would be tricky as the UK is wary of not having free control over its tariffs.
The government wants to avoid problems Turkey has with its customs union with the EU, like having little say on the terms of any trade deals with third countries and being bound to grant trade concessions.
Watch: How Brexit has changed the UK
What about the Pan-Euro-Mediterranean Convention?
Last month, EU trade commissioner Maros Sefcovic said Brussels “could consider” allowing the UK into the Pan-Euro-Mediterranean Convention (PEM) as part of a “reset” in discussions.
Launched in 2012, the PEM aims to make it easier for 25 countries, mostly in Europe and north Africa, to trade via common rules by signing free trade agreements to reduce or lift tariffs on each other’s goods.
The idea has been met favourably by the government, with Chancellor Rachel Reeves telling Trevor Phillips last month that the government is “absolutely happy” to look at the proposals.
William Bain, head of trade policy at the British Chamber of Commerce (BCC), told Sky News that new PEM rules are due to apply in 2026, which could make the transition easier.
BCC research indicates that joining the PEM “would have majority support among UK businesses who trade in the European region”.
What is the youth mobility scheme?
The European Commission has also proposed negotiations with the UK on an agreement to facilitate youth mobility between the EU and the UK.
The scheme would allow both UK and EU citizens aged between 18 and 30 to stay for up to four years in a country of their choosing.
The commission has argued such a scheme would benefit people studying, training, working or travelling, and it has gained support from some Labour MPs.
But in December, the government said there are currently “no plans for a youth mobility scheme with the EU”.
Ms Cooper has reportedly warned her cabinet colleagues it would undermine the government’s pledge to reduce net migration.
For now, it seems Sir Keir is more focused on security and defence than any economic partnerships with the EU.