The Government has been warned that Britain risks losing the benefits of Brexit as talks with the European Union begin next week. Labour ministers and the EU will seek agreements on food standards and carbon trading, with Brexiteers cautioning that the UK could lose 'competitive advantages' and be forced to make multi-billion pound payments to EU funds.
Reform UK deputy leader Richard Tice said the point of Brexit was to embrace competition and strike independent trade deals. He stressed that any agreement must ensure the UK retains its competitive advantages and does not pay into EU coffers. Shadow Business Secretary Andrew Griffith added that the 'last thing the UK economy needs is to shackle itself back into Brussels red tape', fearing billions in taxpayers' money going to Brussels.
John Longworth, former director-general of the British Chambers of Commerce, warned that the EU will always demand payments because the politics of desperation puts the UK in a weak position. Trade expert Shanker Singham cautioned against prioritising small gains from eliminating trade friction over the larger gains of regulatory reform, warning of compounding stagflation.
However, Nick Thomas-Symonds, minister for EU relations, welcomed the talks, stating they will help keep food costs down and slash red tape. The Government claims a sanitary and phytosanitary agreement could boost the economy by up to £5.1 billion annually, and a carbon border tax deal could add up to £3.8 billion a year.
