Tories warn Burnham’s EU ‘pandering’ will shred post-Brexit trade deals

The debate surrounding Andy Burnham's proposed review of the UK's relationship with the European Union has ignited a fierce political battle, with Conservative figures warning of severe repercussions for Britain's independent trade policy. Burnham's suggestions, which include rejoining the EU's customs union, moving closer to the single market, or even outright rejoining the bloc, represent a significant departure from Labour's previous stance and have drawn sharp criticism from those who shaped the UK's post-Brexit trade strategy.

Andy Burnham's EU Stance

Andy Burnham's recent pledges mark a notable shift for the Labour Party, which had previously ruled out rejoining the customs union, single market, or the EU itself. His proposals, particularly customs union membership, are seen by some within his own party as a way to ease trade friction with the UK's largest trading partner. However, this potential alignment comes with a significant caveat: the likely sacrifice of the independent trade deals Britain has painstakingly negotiated since leaving the EU six years ago.

This policy pivot is being framed by the Conservative Party as a dangerous act of 'pandering' that could undermine the UK's global standing. The implications extend beyond mere trade facilitation, touching upon the nation's ability to set its own tariffs and implement independent trade defenses, which are cornerstones of a sovereign trade policy. The political fallout from this debate is expected to intensify as both parties prepare for future elections, with the economic consequences of either path being a central point of contention.

Greg Hands' Warnings

Greg Hands, a former trade minister who served under multiple Conservative governments, has been particularly vocal about the "grave consequences" of Burnham's proposals. He argues that rejoining the customs union would likely invalidate or severely complicate most, if not all, of the existing trade agreements the UK has secured with nations like Australia, New Zealand, Japan, and the CPTPP bloc. Hands highlighted that the UK-Japan deal, which he helped negotiate, offers more liberal data rules than its EU equivalent, suggesting that simply copying EU terms would not be as favorable.

Furthermore, Hands cautioned that such a move would diminish the UK's global influence by forcing it to align with the EU's customs tariff, thereby surrendering its independent system of taxes and duty rates. He also pointed out that the UK would lose its ability to erect its own trade defenses, being compelled instead to implement EU measures, such as tariffs on steel and electric vehicles. The former minister also raised concerns about potential complications with the U.S., the UK's largest bilateral trading partner, which has expressed criticism of closer UK-EU alignment.

CPTPP Membership

Liam Fox, a staunch euroskeptic and former trade secretary, echoed these concerns, specifically highlighting the threat to Britain's membership in organizations like the Asia-Pacific trade bloc CPTPP. He asserted that rejoining the EU or its customs union would "mean an end to Britain’s independent trade policy and any strategy influence we have from membership of organizations such as CPTPP." Fox criticized Burnham's "vague language," suggesting it is merely an attempt to appease the Labour left without fully articulating the profound implications of his proposals.

An anonymous former Tory trade minister further underscored the "real" risks to Britain's new trade deals, emphasizing that such a policy shift would "undermine new relationships with some of the fastest growing middle-class economies in the world." This perspective suggests that while the EU remains a significant market, the long-term economic strategy for the UK should focus on diversifying export opportunities in these rapidly expanding global markets, a strategy that would be jeopardized by a return to closer EU alignment.