PM Keir Starmer must tread carefully in EU talks (Image: Getty)
Two down, one to go. That’s where Starmer stands after landing two major trade deals in three days last week. Both have drawn criticism, but Starmer will still chalk them up as wins.
There’s still a chance he’ll score a massive own goal though.
On Monday, he’ll host the first UK-EU summit since Brexit. European Commission President Ursula von der Leyen will attend.
While billed as a security and defence meeting, talks are expected to go much further, with trade high on the agenda.
Starmer has ruled out rejoining the EU single market, customs union or restoring freedom of movement.
But he does want to update the Trade and Cooperation Agreement, signed in 2020 and due for review in 2026.
A veterinary pact to ease food exports and a deal on recognising professional qualifications are both being floated. So too is an EU-proposed youth mobility scheme, though Starmer is cautious.
With Nigel Farage’s Reform UK rampant and Chancellor Rachel Reeves desperate for growth, the pressure is on to land another win. So how should Starmer proceed?
We asked three experts. Two are crystal clear: now is not the time to sell out Brexit, just as its benefits start to show.
The third says the EU is still our biggest trading partner, and we need closer links. So who’s right?
Dr Gerard Lyons of the Centre for Policy Studies says Starmer must avoid drifting back towards Brussels. “The India deal highlights the UK’s ability to strike mutually beneficial agreements outside the EU.”
India’s economy is growing fast and may one day eclipse the whole of western Europe. The US agreement, while limited, is also a move in the right direction. “Hopefully it’s a stepping stone to a broader deal.”
We couldn’t have secured either deal inside the EU. Instead, we’d be locked into its tariff wars with Donald Trump’s US.
Lyons says we should relish our freedom: “The UK must stay out of the single market and customs union. That’s what gives us the power to strike global trade deals.”
It also lets us regulate emerging sectors like AI, a key growth driver, and control immigration.
Lyons is clear: Brexit isn’t behind the UK’s malaise. “Germany’s recession, Italy’s stagnation, France’s weak growth – none of that’s blamed on Brexit. Nor should our problems be.”
Instead, the real lever is domestic reform. “That’s what will lift living standards long-term.”
Dr Kristian Niemietz at the Institute of Economic Affairs agrees, saying the UK should “stay open, stay global and fix what’s broken at home”.
He has no time for Trump’s protectionism. “His trade policy has no redeeming features. Even with a deal, it still leaves everyone poorer.”
But retaliating won’t help. “Governments that impose barriers mostly hurt their own consumers.”
Dr Gerard Lyons, Kr Kristian Niemietz and Emily Fry (l-r) (Image: Getty)
Niemietz urges Starmer to double down on free trade, and avoid getting too cosy with Brussels. “Rejoining the customs union is a dead end. You can’t sign new trade deals if you’re shackled to EU tariffs.”
Some small concessions might be worth it. “A youth mobility scheme could ease tensions without compromising our independence.”
But the guiding rule must be: protect our right to trade freely elsewhere.
We should also stop blaming Trump for everything, he says. “The UK has barely grown in 18 years. That’s not all on him,” Niemietz says.
Emily Fry at the Resolution Foundation takes a more conciliatory stance towards EU talks.
She says the smart move is to rebuild bridges with Europe while boosting global ties.
“Britain’s a small, open economy that still relies heavily on the EU. We import more than half our goods from Europe and export nearly half there. Lowering those barriers should be a top priority.”
But services are our real strength. “We’re the world’s second-largest services exporter, after the US, and services have mostly escaped Trump’s tariffs.”
So let’s strike smart deals in this space, Fry says. “Digital trade, mutual recognition, and temporary mobility should be the focus.”
Her conclusion? “Rebuild ties with Europe, pursue pragmatic global trade and do more at home to lift growth.”
Can Starmer pull off that hat-trick too? We’ll find out next week.