I am curious to see if the latest developments surrounding the new UK Government’s plans for strengthening relations with the EU will bring about fresh opportunities for UK businesses.
Do you see the potential in Prime Minister Sir Keir Starmer and Business Secretary Jonathan Reynolds’ commitments to forging stronger trade ties with our European neighbours?
Change in the offering
The Government’s initiative to rework the UK’s trade deal with the EU is a welcome departure from the previous Conservative policies.
Jonathan Reynolds’ first international visit as Business Secretary underscored a desire for a “closer, more mature, more level-headed relationship” with the EU.
Isn’t this shift essential for tackling the persistent issues that have hampered UK-EU trade since Brexit, such as cumbersome border checks and increased consumer costs?
Key elements of Labour’s trade strategy
Labour’s trade strategy is focused on practical measures that can benefit UK businesses.
These include smoother trade in agricultural and food products, easier movement for artists and cultural exchanges, and simplified processes for professionals working across borders.
I think these targeted initiatives seem like a direct response to the hurdles we’ve been facing. Whether the strategy is implemented remains to be seen.
Seizing opportunities
The current political goodwill is a golden opportunity for businesses looking to establish or expand their presence in EU markets. Here’s what I believe businesses should do:
- Remain informed of trade negotiations and agreements to adapt swiftly to any changes.
- Actively participate in industry consultations and discussions to ensure your interests are considered.
- Strengthen relationships with any EU partners you work with to maximise the benefits of improved diplomatic ties.
How can your business best position itself to take advantage of these positive developments?
The Brexit deal review
We shouldn’t overlook the Brexit deal’s provision for a review every five years, with the next one in 2026.
Although the specifics are still hazy, this review period is an opportunity to address and resolve trade issues.
Improving supply chain resilience
Jonathan Reynolds’ emphasis on supply chain resilience in his G7 address is particularly interesting.
For businesses aiming to ensure operational stability and mitigate risks, I believe you should:
- Reduce reliance on single sources by finding alternative suppliers within the EU.
- Adopt advanced logistics and supply chain management tools to enhance efficiency.
- Use the improving relationships to develop joint strategies for supply chain resilience.
New trade opportunities on the horizon?
The Government’s commitment to better trading relationships globally could well be the pathway to opening up new opportunities for UK businesses.
While the primary focus remains on the EU, it’s wise to also explore opportunities in other markets to diversify and strengthen trade portfolios. Are you exploring new markets to ensure a diversified and secure trade strategy?
It is yet to be seen whether the movements made by the Government will have a definitive impact on businesses, but it is definitely something to keep an eye on.
In the meantime, we are here as always to provide you with a range of business services that will ensure that your organisation remains on top.
If you would like further information on what the Government’s attempts to build greater trade links to the EU could mean for your business, please contact us today.