The European Commission has indicated it would be 'open-minded' to discussing closer trade ties with the UK, including a customs union, according to EU economy commissioner Valdis Dombrovskis. Speaking to the BBC, Dombrovskis said the bloc was 'ready to engage with an open mind' on the matter, amid growing pressure within the Labour Party for such a move.
Prime Minister Keir Starmer has signalled a desire for deeper economic links with the EU single market, though he has ruled out rejoining the customs union or single market. A customs union would require the UK to align with EU trade deals, potentially undermining post-Brexit agreements with countries like India and Australia.
Dombrovskis, after talks with UK ministers including Chancellor Rachel Reeves, stressed that single market membership requires acceptance of the 'four freedoms' – goods, services, capital and movement. EU officials maintain that these cannot be split, making a selective approach difficult.
European Parliament President Roberta Metsola echoed the warmer tone, calling for a 'reset' of the UK-EU partnership on trade, customs, and security. Meanwhile, talks are ongoing on a veterinary agreement, youth exchange, electricity market linkage, and emissions trading.
Cabinet Office minister Nick Thomas-Symonds emphasised a 'ruthlessly pragmatic approach', noting that current negotiations on food, drink, and carbon trading could boost the UK economy by £9bn annually by 2040. The EU is also focused on revitalising its single market, with a special summit scheduled for next week.
