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Britain is taking its first steps towards forging closer trading links with the EU in meetings between the new business secretary, Jonathan Reynolds, and international counterparts in Italy.
In his first overseas visit since Labour’s election landslide, Reynolds will tell a G7 meeting of trade ministers in the Italian city of Reggio Calabria that the new UK government wants to foster a “closer, more mature relationship with our friends in the EU”.
Aiming to reset relations after a volatile period under successive Conservative administrations since the 2016 Brexit vote, he is expected to tell international ministers that Britain is “back on the world stage and ‘open for business’”.
Reynolds will add: “We are seeking a closer, more mature, more level-headed relationship with our friends in the European Union – our nearest and largest trading partner, and we also intend to forge better trading relationships with countries around the world.”
The meetings come as Keir Starmer tries to build closer links with Brussels by hosting EU leaders at Blenheim Palace near Oxford on Thursday, as part of a one-day European Political Community summit.
The prime minister is attempting to walk a tightrope between strengthening EU relations while also telling voters that his government will not take Britain back into the single market or customs union. Starmer is instead relying on more modest reforms and a warmer tone with Brussels.
The prime minister insisted during the election campaign that the UK would not rejoin the EU within his lifetime. Instead, Labour committed in its manifesto to building stronger trade and investment links with the 27-nation bloc, including through a veterinary agreement, support for touring artists, and mutual recognition deals for professional qualifications.
The EU accounted for 41% of UK exports of goods and services and 52% of imports in 2023. Business leaders have urged Starmer to forge closer links with Brussels given the importance of the EU market to UK companies, while also calling for looser migration rules to give them more access to EU workers.
Under the terms of the Brexit deal finalised by Boris Johnson’s government in late December 2020, and in force since January 2021, the UK and the EU are committed to reviewing the implementation of the agreement every five years, with Starmer expected to oversee the first such process in 2026.
Some commentators have suggested the review could pose an opportunity for the deal to be renegotiated. However, EU officials have argued the process may only offer limited scope for change.
Reynolds is expected on Tuesday to hold his first in-person meetings with G7 counterparts since his appointment earlier this month, including with the vice-president of the EU Commission Valdis Dombrovskis and the German vice-chancellor, Robert Habeck.
The new government is hoping a “reset” of international relations will bolster Britain’s status among global businesses and investors, as part of efforts to secure the highest sustained rate of economic growth in the G7.
It also comes amid rising geopolitical tensions and political uncertainty elsewhere. The US president, Joe Biden, appeared last week to back Starmer’s ambitions for closer EU ties, telling the prime minister in talks at the White House that this would also strengthen the transatlantic alliance with Washington.
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