Alexander calls trade with the EU more beneficial than separate deals — The Guardian

Scottish Secretary Douglas Alexander, during a trade delegation visit to Mumbai, India, said that closer trade relations between the United Kingdom and the European Union could bring the country greater economic benefits than the ability to conclude separate free trade agreements. This was reported by The Guardian.

The EU remains the main partner

Alexander, who previously helped negotiate trade agreements with India and the United States, believes that joint trade arrangements with the EU — including through a customs union or full membership — would be a more significant economic gain. At the same time, he did not endorse any specific method of closer ties with the bloc.

According to the minister, Europe’s geographical proximity and the volume of trade determine its importance for the United Kingdom. He noted that the country trades with the EU almost twice as much as with the United States, Britain’s largest individual trading partner. The EU accounts for almost half of total UK trade, Alexander added.

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India deal and barriers

The minister welcomed the initial results of the agreement with India, which entered into force earlier this year. According to him, the price of Scottish whisky in India has fallen by 10–15% since then. British ministers are also discussing with Indian officials issues related to the initial stage of implementing the agreement, particularly for small businesses, as well as non-tariff barriers.

Alexander also noted that the long-term increase in UK GDP from participation in the CPTPP trans-Pacific agreement will amount to less than one-tenth of a percent, according to government estimates. In his view, this demonstrates the importance of European trade for the British economy, given estimates of the structural economic losses from Brexit.

Many government representatives consider reaching agreements at the EU summit next month to be more important. Andy Burnham hopes to sign new trade agreements there on emissions, electricity and agricultural products. Issues also include the Made in Europe policy, which British manufacturers believe could restrict their access to an important market. European leaders, meanwhile, insist that the United Kingdom introduce tariffs on Chinese electric vehicles, but Business Secretary Jonathan Reynolds said he would not do so merely because of pressure from Brussels.