Scotland Secretary Douglas Alexander has argued that Britain stands to gain significantly from deepening its trading relationship with the European Union, even if such a move requires relinquishing the nation’s autonomy to negotiate independent free trade agreements. While Alexander previously played a key role in negotiating trade deals with India and the United States during Keir Starmer’s premiership, he now contends that formalizing joint trading arrangements with the EU—potentially through a customs union or full membership—represents a superior economic opportunity.
This shift in tone signals a pivot for the government, following Prime Minister Andy Burnham’s recent call for a “serious dialogue” regarding the UK’s future relations with the EU, which could include the possibility of re-entry. Previous administrations had frequently resisted such integration, arguing that rejoining would necessitate abandoning trade pacts established with other global partners. Alexander’s comments show how much Starmer’s successor, Andy Burnham, who called this week for a “serious dialogue” on the UK’s relations with the EU, including possible re-entry, has shifted the government’s position.
Speaking during a trade mission to India, Alexander acknowledged the recent success of the UK-India trade agreement, noting that the price of Scotch whisky in India has declined by 10% to 15% since the deal took effect earlier this year. However, he emphasized that geography remains a decisive factor in trade policy. He pointed out that the Channel is only 21 miles wide and the EU remains the UK’s largest trading partner, with trade volumes nearly double those seen with the United States.
Reflecting on the post-Brexit landscape, Alexander criticized the “post-imperial delusions” of those who promised a future for Britain as a buccaneering free trade nation. He observed that the global economic environment has instead become more regionalized and protectionist. He specifically contrasted the minor benefits of the CPTPP—which he noted yields a long-term GDP boost of less than 0.1%—against the structural damage caused by Brexit, asserting that the nation is currently paying a high economic price for creating barriers with its closest neighbors. Back in 2016, they promised a world of Britain as a buccaneering free trade nation in a world where barriers were coming down. “At the time we joined the Pacific trade grouping, the CPTPP [Comprehensive and Progressive Agreement for Trans-Pacific Partnership] – which undoubtedly makes a lot of sense geopolitically for the UK – our own analysis made clear that the long-term boost to UK GDP from membership is less than a tenth of 1%. He made it clear he did not support any particular method of achieving closer relations with the EU.
During the Mumbai delegation, which included Business Secretary Jonathan Reynolds, Environment Secretary Angela Eagle, and various northern English mayors, officials focused on resolving “teething problems” affecting smaller businesses under current agreements. Alexander emphasized the ongoing work to address non-tariff regulatory barriers that currently inhibit growth. The ministers spent much of their time in meetings with Indian officials as they attempt to iron out what they say have been “teething problems” with the early implementation, especially for smaller businesses. “There are always teething problems,” Alexander said. “We’re also having a conversation at the level of regulation to see how do we overcome non-tariff barriers that can prove to be an inhibitor to the kind of progress we want to see unless they’re addressed.”.
Looking ahead to next month’s EU summit, the government hopes to reach agreements concerning electricity, emissions, and agricultural products. A primary point of contention involves the EU’s “Made in Europe” protectionist policy, which British manufacturers fear could exclude them from critical markets. While EU officials have expressed willingness to discuss UK participation, they are simultaneously pressuring Britain to implement tariffs on Chinese electric vehicles to prevent the UK from serving as a gateway for those products into Europe. Business Secretary Jonathan Reynolds has maintained that the UK will not impose such tariffs solely due to pressure from Brussels.
