economy
UK pitched single market for goods with EU in pursuit of deeper trade ties
Exclusive: Top British official presented idea in Brussels but sources say it was rebuffed
TL;DR
- UK government proposed a single market for goods with the EU in an effort to deepen trade relations.
- EU officials reportedly rejected the proposal, suggesting a customs union or economic alignment through the European Economic Area instead.
- These EU proposals conflict with Labour's stated red lines, including not rejoining the EU, single market, or customs union, and accepting free movement.
- The UK and EU are working towards agreements on a veterinary deal, linking emissions trading schemes, and a youth mobility program for a summit.
- EU officials are wary of creating a special deal for the UK that could set a precedent for other member states.
- The UK is also seeking cooperation in defense, including talks to join the EU's loan for Ukraine.
- Separately, the EU and Mexico signed a long-stalled free trade agreement to decrease dependence on the US and insulate from tariffs.