{"id":144637,"date":"2025-05-30T17:16:17","date_gmt":"2025-05-30T17:16:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/144637\/"},"modified":"2025-05-30T17:16:17","modified_gmt":"2025-05-30T17:16:17","slug":"andrew-bailey-urges-closer-eu-trade-ties-to-ease-brexit-strain-and-counter-trump-tariffs","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/144637\/","title":{"rendered":"Andrew Bailey urges closer EU trade ties to ease Brexit strain and counter Trump tariffs"},"content":{"rendered":"

Bank of England Governor Andrew Bailey has called on Sir Keir Starmer to go beyond the government\u2019s recent EU \u201creset\u201d deal and forge deeper trade and financial links with Brussels, warning that the economic fallout from Brexit and Donald Trump\u2019s resurgent protectionism pose mounting risks to UK growth.<\/p>\n

In a major speech delivered in Dublin, Mr Bailey welcomed the government\u2019s latest agreement with the European Union, which reduces customs checks and aligns UK food standards with the bloc. But he said the deal did not go far enough to address the long-term economic challenges Britain faces.<\/p>\n

\u201cJust as the Windsor Agreement<\/a> on trade involving the UK and Ireland was a welcome step forward, so too are the initiatives of the current UK Government to rebuild trade between the UK and EU,\u201d he said. \u201cBut there is more we can do.\u201d<\/p>\n

Bailey was careful to avoid weighing in on the politics of Brexit, stating: \u201cI take no position on Brexit per se.\u201d However, he made clear that its economic consequences\u2014particularly in the form of non-tariff barriers\u2014have hurt productivity and overall growth.<\/p>\n

\u201cIf the level of trade is lowered by some action, it will have an effect to reduce productivity growth and thus overall growth. Just as tariffs, by increasing the cost, can reduce the scale of trade, the same goes for the type of non-tariff barrier that Brexit has created,\u201d he said.<\/p>\n

\u201cThis does not mean that Brexit is wrong<\/a>, because there can be other reasons for it, but it does suggest, I think powerfully, that we should do all we can to minimise negative effects on trade.\u201d<\/p>\n

The Governor\u2019s remarks come as Starmer\u2019s government faces mounting criticism over its EU strategy. The latest reset deal, which binds the UK to Brussels\u2019 food safety standards and grants influence to the European Court of Justice, has been labelled \u201cthe worst of both worlds\u201d by Brexiteers and some Labour backbenchers. Critics argue it sacrifices regulatory autonomy without restoring voting rights in EU institutions.<\/p>\n

Bailey, however, pressed for deeper alignment\u2014particularly in financial services\u2014arguing it is crucial to ensure London\u2019s role as a global capital market remains intact.<\/p>\n

\u201cThe scale of investment needed requires access to global capital, supported by open financial markets,\u201d he said. \u201cThere is merit in seeking to increase the openness of our financial markets by reducing non-tariff barriers.\u201d<\/p>\n

While defending global trade, Bailey also echoed parts of President Trump\u2019s diagnosis of global economic dysfunction, describing international trade rules as under strain and in urgent need of repair.<\/p>\n

He acknowledged that the former US president\u2019s criticism of China\u2019s industrial subsidies and \u201cunsustainable trade imbalances\u201d was not without merit.<\/p>\n

\u201cI am an unshaken believer in free trade, [but] the system has come under too much strain,\u201d Bailey said. \u201cIt is incorrect to dismiss those who argue for restrictions on trade as just wrong-headed.\u201d<\/p>\n

He cited International Monetary Fund research that found China had implemented thousands of subsidy programmes across critical industries, skewing global markets and contributing to the erosion of fair trade principles.<\/p>\n

While Bailey stopped short of endorsing Trump\u2019s tariffs, he admitted they reflect deeper dysfunction in the multilateral trading system.<\/p>\n

\u201cIf it is believed that tariff action is needed to create the shock and awe to get these issues on to the table and dealt with, then something has gone wrong with the multilateral system,\u201d he said.<\/p>\n

Nonetheless, the Governor warned against the UK and others turning inward.<\/p>\n

\u201cWe must not retreat indiscriminately from global trade. The answer lies in diversifying supply chains among reliable partners who abide by international law,\u201d Bailey concluded.<\/p>\n

His speech is likely to add momentum to calls for a more pragmatic and economically focused post-Brexit policy, even as political divisions over the UK\u2019s future relationship with Europe remain sharp.<\/p>\n

\t \t\t\"Jamie \t \tJamie Young \t<\/p>\n

\t\tJamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
\nJamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
\n
\nWhen not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders. \t<\/p>\n","protected":false},"excerpt":{"rendered":"Bank of England Governor Andrew Bailey has called on Sir Keir Starmer to go beyond the government\u2019s recent…\n","protected":false},"author":2,"featured_media":144638,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5226],"tags":[802,748,2000,299,5187,1699,4884,16,15],"class_list":{"0":"post-144637","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-brexit","8":"tag-brexit","9":"tag-britain","10":"tag-eu","11":"tag-europe","12":"tag-european","13":"tag-european-union","14":"tag-great-britain","15":"tag-uk","16":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114597920578394253","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/144637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=144637"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/144637\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/144638"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=144637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=144637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=144637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}