“We’ve lost more than we’ve gained,” Andy Burnham warned as he prepared for a Brussels trade summit.
Burnham delivered the assessment on Saturday at the Welsh Labour conference in Llandudno, accusing the Conservatives of delivering a harder Brexit than voters expected.
The upcoming Brussels meetings on Friday involve the prime minister meeting European Commission president Ursula von der Leyen and European Council president António Costa. Negotiations will center on food and farming, emissions trading, and youth mobility.
The government projects these agreements could boost UK gross domestic product by 0.4 percent, which equates to roughly £17bn. Burnham argued that closer ties with the European Union could help bring down food prices and support British exporters.
He singled out Welsh lamb and shellfish exporters as primary beneficiaries of a food and farming deal, noting it would reduce the post-Brexit paperwork and border checks.
“We must be prepared to make difficult decisions to bring down the cost of living,” Burnham told delegates.
At the same time, he maintained that Labour would respect its manifesto commitments, which rule out rejoining the single market or customs union, or restoring freedom of movement.
These remarks follow his previous suggestion that Britain could explore a closer long-term relationship with Brussels after the next general election.
The proposed food agreement aims to align British regulations more closely with EU standards, removing the health certificates and routine checks currently required for agricultural exports. Ministers estimate the deal could add £5.1bn annually to the UK economy by 2040, though final terms remain unconfirmed.
However, Karen Betts, chief executive of the Food and Drink Federation, warned that the changes could place additional pressure on manufacturers already struggling with high energy costs and regulation, City AM reported.
“The sector finds it must rapidly prepare to re-comply with EU food law, in the UK and for exports, under the UK-EU reset about to be signed,” Betts told City AM.
“This is all diverting precious resources – people and capital – from investing in the manufacturing capacity, efficiency and jobs that underpin our food system’s resilience,” she added.
Additional complications arise from proposed EU “Made in Europe” rules that could restrict subsidies for manufacturers using components produced outside the bloc. Britain’s automotive industry faces particular exposure under these measures, which threaten to disadvantage UK carmakers supplying European markets.
David Bailey, professor of business economics at the University of Birmingham, described securing access to the scheme as “mission-critical” for British manufacturing.
“If Europe introduces a Made in Europe regime that protects its industrial base, the UK needs to be inside it,” Bailey said.
He suggested that Britain should consider tariffs on Chinese imports if necessary to secure an agreement with Brussels.
Meanwhile, the Conservatives have criticised the cost of Britain’s planned return to the Erasmus student exchange programme, which is estimated at £570m next year.
