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Keir Starmer’s Labour government has vouched for closer trade relations with the EU to boost UK economy

Keir Starmer has hailed a “once-in-a-generation opportunity” to fix the UK’s relationship with the EU, as he aims for a treaty with Germany.

The prime minister is meeting German chancellor Olaf Scholz for talks on a new deal that would boost business and trade and improve the country’s relations with the bloc.

Starmer said he hoped a new cooperation agreement between the two countries would help “turn a corner” on Brexit as “part of a wider reset” of European relations.

A treaty covering areas such as trade, defence, energy and science and technology is expected to be signed by early next year.

However, the PM told a press conference that seeking closer relations with EU countries did “not mean reversing Brexit or re-entering the single market or customs union”.

“But it does mean a closer relationship on a number of fronts, including the economy, including defence, including exchanges,” he added.

The EU remains Britain’s largest food & drink trading partner, accounting for more than half of exports (58% or £3.3bn) and 70% (or £10.5bn) in imports in Q1 2024 alone, according to data from the FDF.

Germany alone was the UK’s fifth largest exports market in the first quarter of the year.

Labour has previously pledged to work on a veterinary deal with the EU to reduce costly border checks on animal and plant goods, which have been in place since April this year.

But it is unclear whether Brussels wants to look into making major changes to the current Brexit trade deal, which is set for revision in 2026.

Read more: First Brexit common user charge bills serve bitter shock to food industry

The EU has proposed plans for a youth mobility scheme, which would give EU citizens aged 18 to 30 easier paths to study and work in the UK for a limited period, with the same benefits given to British people in Europe.

But, as he spoke at a joint news conference with the German chancellor, Starmer said his government had no plans for a youth mobility scheme, stating the focus was on the bilateral treaty.

Scholz welcomed the improvement of UK-EU relations, saying Britain had always been “an indispensable partner” and “nothing has changed after Brexit”.

Starmer said: “We want a close relationship of course, and I do think that can extend across defence, security, education and cultural exchange, and of course trade. But we didn’t go into the details of that today. 

The two leaders also agreed on a joint action plan to tackle illegal immigration and smuggling mafias by sharing more intelligence.

This was Starmer’s first trip to Germany since becoming prime minister. He will shortly head to France to meet president Emmanuel Macron.

One EU source told The Times: “It is good to see Starmer in the European capitals but he must, as I am sure he does, realise that any access to the EU’s single market comes with obligations on mobility and alignment with European laws, on food safety for example.”