The UK’s relationship with the EU is, as ever, a major talking point heading into Labour Party Conference this weekend, with a new report and an intervention on the issue from a former prime minister making headlines.
In the here and now, the news that China and the US are extending their trade truce may be of greater significance for international supply chains, while fears are continuing to grow about the possible impact of the coming El Niño climate phenomenon.
And, if you missed it, the Chartered Institute’s director general Marco Forgione has announced he will be stepping down from his position come the end of the year.
Labour’s EU dilemma
A new report from the think tank IPPR, published in the days leading up to the Labour Party Annual Conference 2026, has claimed that a post-Brexit mutual recognition agreement (MRA) on product testing would have boosted UK exports to the EU by between £3.7bn and £6.5bn a year.
The lost exports “stem from requirements for some British products to undergo additional testing and certification before they can be sold in EU markets,” according to IPPR.
An MRA predicated on ‘dynamic alignment’ would have allowed UK and EU authorities to recognise each other’s product assessments, creating a more cost-efficient and clearer business landscape for exporters. Securing such a deal now would be a particular boost for automotive, electronics and pharmaceuticals.
Joseph Sassoon, an economist at IPPR and co-author of the report, said:
"At a time when growth is hard to come by, a mutual recognition agreement with the EU would be a practical way to boost trade and support key sectors of the UK economy.”
Former Labour PM Tony Blair has also made a public pre-conference intervention, calling on the UK to rejoin the EU as part of Andy Burnham’s 10-year plan for the country, provided Brussels reforms the bloc into a “Europe of nation states”.
Europe relations minister Hamish Falconer insisted last night that the party’s manifesto red lines on the relationship “remain in place” in an interview with Robert Peston. He did, however, say there was “room to raise our eyes” in ongoing negotiations.
He also said he was hoping that this year’s Leaders’ Summit – which still doesn’t have a date – would be more ambitious than the one being prepared by the previous Starmer administration. It’s thought that the UK’s call for access to the EU’s ‘Made in Europe’ procurement proposals could become a key talking point for this event.
UK-EU negotiations continue against the backdrop of European Commission President Ursula von der Leyen’s offer of associate membership to Canada last week.
US-China trade truce extended
Chinese President Xi Jinping has landed in the US for a high-stakes summit with American counterpart Donald Trump in Washington – his first state visit in the country since 2015.
The meeting begins with the news that the two superpowers are set to extend their one-year tariff truce, which had been due to expire on 10 November.
US Treasury secretary Scott Bessent told Fox News that the current deal, which suspends the highest of tariffs that were threatened last year, will now run to 10 January.
Xi told reporters, including the FT, that the two countries should be “partners, not rivals”.
“The two sides should move towards each other and work together to build a stable relationship — one where co-operation is the mainstay, competition is kept within proper limits, differences are managed and peace can be expected.”
As well as trade, AI is expected to be a prominent talking point for the two leaders, amid fears that the global race to develop the technology could lead to humans losing control of the risks it poses.
El Niño threat
Foreign secretary Ed Miliband has warned that the upcoming El Niño superstorm could “intensify climate shocks that compound and cascade across borders, threatening food and water security, displacing communities, putting pressure on markets and scarring economies”.
He was speaking at the UN General Assembly following the publication of a UK government paper, previously suppressed by the Starmer administration, that details the threats posed to national security by imminent climate change.
The joint intelligence committee’s report, revealed in the Guardian, found that the destabilising impact of the changing global climate was one of the UK’s biggest national security risks, with food supplies in particular threatened due to its reliance on imports from countries that could be worst affected.
“The countries fit for the future will be those that see climate and nature as intrinsic to economic and national security; countries that anticipate risks and invest in resilience before crises hit,” said Miliband.
Also in the trade news today
- The UK and Philippines have struck a deal for UK Export Finance’s £5bn capital in the country to be considered for government infrastructure projects
- Ukrainian officials have called the EU’s plans to remove two Russian oligarchs from its sanctions package “unacceptable”, the BBC reports
- Following US pressure, the UK will tighten financial sanctions on Iranian banks
Yesterday in trade
- The European Commission published new guidance on deforestation rules
- A report found that the EU’s ‘Made in Europe’ proposals could hit European jobs and supply chains linked to the UK
- Burnham met Trump at the UN General Assembly, with the latter saying the new British leader was someone he can “do business” with
You can read yesterday’s trade news here.
