Bank of England Governor Andrew Bailey has urged the UK to "do everything we can" to rebuild its trade relationship with the European Union, emphasizing the importance of reversing the
decline in post-Brexit trade.
Speaking to the BBC following a recent trade agreement between the UK and the United States, Bailey said that while he does not take a political stance on Brexit, restoring stronger ties with the EU would clearly benefit the UK economy. “It would be beneficial—having a more open economy to trade with the European Union. Because there has been a fall-off in goods trade with the EU over recent years,” he explained.
The government is currently in negotiations with the EU to redefine its trade and security relationship, ahead of a key summit later this month. The recent US-UK deal, which includes reduced tariffs on certain British-made cars and limited steel and aluminium exports, has opened the door for the UK to pursue a veterinary agreement with the EU. Such a deal could ease regulatory burdens on exports of food, agricultural products, and seafood by aligning standards.
Despite the progress with the US, most British goods will still face a 10% import duty, making the EU trade relationship all the more critical.
Bailey underscored the significance of restoring EU trade, noting that the bloc remains the UK’s largest trading partner. “It is important we do everything we can to ensure that whatever decisions are taken on the Brexit front do not damage the long-term trade position. So I hope that we can use this to start to rebuild that relationship,” he said.
He also pointed to the UK's broader international trade efforts as a positive example. “It demonstrates that trade deals are important. Trade deals can be done, and the trade is important,” he said. “Honestly, it seems an unpromising landscape at times. But I hope that we can use these deals to rebuild the world trading system.” Photo by Diliff, Wikimedia commons.