Labour has reached a draft agreement with the EU to reduce red tape on food exports, potentially lifting restrictions on items like sausages, burgers, and shellfish. The deal, struck ahead of a November 20 summit, is expected to streamline trade but comes with significant concessions.
According to diplomatic sources, the UK would accept "dynamic alignment" with EU rules on food and farming. This means the UK would adopt new EU regulations, having limited influence over their creation. Additionally, ministers are reportedly prepared to make annual payments, totaling millions, to support infrastructure projects in less affluent EU states. Brussels is also seeking a reduction in university tuition fees for EU students studying in the UK, which could cost taxpayers an estimated £450 million.
Andy Burnham, a key figure in the negotiations, suggested the deal could boost the UK's GDP by up to 0.4 percent, equating to £12 billion. He argued that such economic benefits are too substantial to ignore and should be pursued vigorously. "if something can be done to add 0.4 per cent to British GDP, that should be pursued very vigorously," Burnham stated.
However, the proposed deal has drawn criticism. Former Tory business secretary Sir Jacob Rees-Mogg warned of a "very high cost," suggesting the move effectively leads the UK back towards EU alignment without parliamentary or public consent. "We will have to follow their rules and we will have to pay them money as we did before we left," Rees-Mogg commented.
Business groups have reacted cautiously. William Bain of the British Chambers of Commerce described following EU rules as a "price worth paying" for advantages such as lower costs, reduced delays, and increased market access. The proposed agreement also includes a "youth experience scheme" that could allow up to 100,000 young EU adults to work in Britain for up to 12 months, with a reciprocal arrangement for British youth in the EU.
Burnham intends to use the upcoming summit to initiate discussions about Britain's future relationship with the EU, potentially paving the way for rejoining after the next general election. He believes the public sentiment towards Brexit has shifted, with a growing openness to a more pragmatic dialogue. The core of the food and farming aspects of the deal were reportedly negotiated by Sir Keir Starmer last year, with recent months focused on implementation details. The agreement is anticipated to conclude the "sausage war" that has impacted processed meat exports since Brexit.