Politics · United Kingdom · 4 hrs ago
UK minister says closer EU trade ties could outweigh separate deals
Scotland Secretary Douglas Alexander backed closer UK trade ties with the EU, saying they could bring greater economic gains than separate deals with other countries.
He said the closer relationship could take the form of a customs union or full EU membership, but did not endorse a specific route.
Britain might have to give up the power to negotiate its own trade agreements to achieve those arrangements.
Alexander said the UK trades almost twice as much with the EU as with the United States, and that the EU accounts for almost half of UK trade.
Prime Minister Andy Burnham has called for serious talks on the UK’s relationship with the EU, including possible re-entry.
Alexander said the long-term boost to UK GDP from joining the Pacific trade grouping CPTPP was estimated at less than 0.1%, while Brexit had caused structural damage to the economy.
Ministers are working to resolve early problems with the UK-India trade deal, including barriers affecting smaller businesses.
Scotland Secretary Douglas Alexander said closer UK trade ties with the European Union could bring greater economic benefits than separate trade agreements.
He said that could be true even if closer ties required the UK to give up the ability to negotiate its own free trade agreements.
Alexander said the EU was and would remain the UK’s largest trading partner, with the UK trading almost twice as much with the EU as with the United States.
He made the comments during a trade delegation to India, where ministers were discussing early implementation problems with the UK-India agreement.
Alexander did not endorse a particular way of achieving closer relations with the EU.
- Who
- Douglas Alexander, the Scotland secretary, said closer trade ties with the EU could bring greater economic benefits.
- What
- He said closer EU trading arrangements could be a bigger prize than separate trade deals, even if they meant giving up the ability to negotiate free trade agreements.
- When
- 14 October 2026.
- Where
- Mumbai, India.
- Why
- Alexander said the EU is the UK’s largest trading partner and that geography matters to trade.
This story does not have two clearly opposing sides.
Brexit campaigners promised Britain would become a buccaneering free trade nation as barriers came down.
The UK-India trade agreement came into force, and the price of scotch whisky in India fell by 10-15%, Alexander said.
Alexander spoke in Mumbai during a trade delegation to India and said closer EU trade ties could bring greater economic benefits.
- UK-EU trade
- Almost half of total UK trade, according to Alexander
- UK-US trade comparison
- The UK trades almost twice as much with the EU as with the United States
- India agreement
- Came into force earlier in 2026
- Scotch whisky price in India
- Fell by 10-15% after the agreement came into force, Alexander said
- CPTPP GDP estimate
- Long-term boost to UK GDP from membership is less than a tenth of 1%, according to UK analysis cited by Alexander
What people are saying
In trade policy, geography still matters,
We trade almost twice the amount with the European Union that we do with the United States, the largest single-country trading partner.
We’re already paying a real economic price for putting up new barriers to our European neighbours who, with almost half of total UK trade, remain easily our largest trading partners.