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Burnham set to unveil EU deals worth billions, with £17bn boost claimed for UK economy

Staff Reporter
Burnham set to unveil EU deals worth billions, with £17bn boost claimed for UK economy
Photo: Collected

Prime Minister Andy Burnham is preparing to announce billions of pounds of trade deals with the EU covering everything from youth visas to pet passports, under his vision of a much closer relationship with the bloc.

The prime minister is scheduled to meet his European counterparts in Brussels on 20 November. Officials have all but agreed three deals that would allow farmers to sell freely to the continent and travellers to take their animals abroad more easily.

Although parts of the agreement will not be put in place until 2028, those close to the talks insist the process will not be derailed by disagreements on European industrial policy or UK university fees.

Burnham said on Tuesday that the agreement would boost the UK economy by £17bn — an increase of 0.4%. He told the Economist: “A deal could add up to 0.4% to GDP. Now that is a number that you cannot ignore.”

He told ITV: “Public opinion has changed nationally. But I want to be really clear on this issue. I will not run ahead of public opinion. The public need to be the boss when it comes to whatever happens with Brexit.” His advisers believe the deal will also strengthen his attempts to forge much closer ties with, and even potentially rejoin, the bloc.

Burnham will meet Ursula von der Leyen, the president of the European Commission, and António Costa, the president of the European Council, in Brussels later this month, when the leaders are expected to announce the deals.

They include an agricultural agreement the government believes will be worth over £5bn to the UK economy by 2040; access to the EU’s emissions trading scheme; and a youth visa scheme for tens of thousands of people under 30.

Officials on both sides say the final text for all three deals is close to being agreed, though some key details need to be finalised, including how many young people should be allowed to travel under the mobility scheme. Both sides are understood to have agreed that each European member state should get its own quota, to spread out the benefits and potential costs.

Under the proposed agricultural deal, UK companies and travellers would no longer need a certificate to transport live animals, including pets, into Europe. Those bringing domesticated animals into the bloc would be issued with a pet passport, removing the need for complicated paperwork each trip. UK producers would be allowed to continue selling some products banned under EU law, such as certain pesticides, for a “transition period”, and trade in other products, including live molluscs and Scottish salmon, would be freed up.

Under a separate agreement on emissions, the UK would pay the EU billions of pounds to avoid being trapped by a cross-border carbon tax that comes into place in January.

Under the “youth experience scheme”, Britain and the EU would issue visas to people under 30 to live, work and travel in each other’s territories. The UK is negotiating an emergency brake-style mechanism so that if a member state refuses to issue its quota of visas, the UK will restrict the number of their nationals travelling to Britain.

Officials on both sides have also started talks on a separate joint statement setting out areas of future cooperation, including industrial policy and tuition fees. A draft prepared by the EU and not yet agreed by the UK describes the two sides as “trusted partners” and would seek to conclude an agreement on charging European students lower fees within six months.

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