The Conservative Party of Britain has warned of the dangers that the new policies of Andy Burnham, the Mayor of Manchester, pose for post-Brexit trade agreements. Burnham recently announced that a major review of the country's relationship with the European Union will be conducted. These remarks are particularly significant ahead of the Conservative Party conference in Birmingham.
Dangers of Joining a Customs Union
Some members of Burnham's cabinet have pointed to joining a customs union as a popular option. This move could facilitate trade between Britain and its largest trading partner, but it would come at the cost of sacrificing the trade agreements that Britain has secured over the past six years since leaving the European Union.
Greg Hands, a former trade minister who served four times in Conservative governments between 2016 and 2024, stated that all proposed options carry serious risks for Britain's independent trade policy. He added: "Depending on what agreement is reached, it will likely void or make very difficult most -- if not all -- existing trade agreements."
Impacts on Global Relations
Since Brexit, Britain has signed trade agreements with countries such as Australia, New Zealand, and Japan. However, Hands warned that the terms of these agreements may not be as favorable as those of the European Union, and added that as a non-member country, Britain would also lose the ability to negotiate the terms of new agreements.
He also pointed out that entering a customs union with the European Union could have a negative impact on Britain's global tariffs. This would mean a reduction in Britain's influence in the world and alignment with the EU's customs tariffs.
Hands also warned of potential complexities in relations with the United States, stating that "the United States is our largest bilateral trading partner, and I don't think it is in Britain's interest to jeopardize that relationship."
Another former Conservative minister, who wished to remain anonymous, highlighted the real dangers for Britain's new trade agreements, stating that this could undermine new relationships with some of the fastest-growing economies in the world.
