The Bank of England’s Governor, Andrew Bailey, has issued a stark call for Britain to rebuild its trading relationship with the European Union, highlighting Brexit’s detrimental impact on goods exports to the continent.
Speaking to prominent City of London figures, Bailey emphasised that whilst the Bank maintains neutrality regarding Brexit itself, its role involves identifying economic consequences. His remarks represent his most direct commentary on EU departure effects to date, aligning with Downing Street’s priority to negotiate enhanced trading arrangements.
Sir Keir Starmer’s administration aims to leverage an upcoming review of existing post-Brexit agreements to streamline Channel-crossing product checks and establish mutual recognition of UK professional qualifications within the EU. Bailey noted that altered EU relations have created economic pressure, particularly affecting goods rather than services trade.
The timing of these statements coincides with mounting concerns over global trade fragmentation, especially following Donald Trump’s presidential victory in the United States. Trump’s proposed tariff regime, potentially reaching 20% on British imports and 60% on Chinese goods, raises spectre of international trade conflicts.
These developments emerge as Crawford Falconer, Britain’s chief trade negotiator since 2017, prepares to depart his role next month. His exit, marking the end of an unrenewed contract, creates a significant void in Britain’s trade negotiation capabilities at a crucial juncture.
Lord Mandelson, frontrunner for the British ambassadorship in Washington, advocates for a balanced approach between US and EU relations amidst potential trade disputes. His stance reflects growing recognition that Britain must carefully navigate its position between these major trading partners while managing Brexit’s ongoing implications.
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