How will political parties unlock Britain's Brexit potential?

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Labour is focused on rebuilding EU relations, the Lib Dems want to rejoin the single market and the Tories want to press ahead with work so far

Two years of intense inflation has ensured the electorate could scarcely be more aware of the link between food prices and issues such as EU relations and trade deals. So how do the main parties plan to finally unlock Britain’s post-Brexit potential?

The last in our series of election analysis features examines what they represent on trade.

Labour’s food and drink trade pledges

Rachel Reeves

Source: UK Parliament

Shadow chancellor Rachel Reeves promises to pursue trade deals

A key pledge of the Labour manifesto is to rebuild relations with the EU – priorities which shadow chancellor Rachel Reeves reiterated last week. In an interview with the FT, she said Labour would continue to pursue trade deals “around the world”, but not the current government’s “adversarial” approach to EU trade.

The party has also reiterated an intention to form a veterinary agreement with Brussels to reduce sanitary and phytosanitary (SPS) barriers, currently behind some of the biggest cost and time burdens for traders.

“This is great news for the food industry and consumers, particularly for the smaller food exporters, who have been hard hit by Brexit-related issues”, says Mark Lynch, partner at corporate finance house Oghma Partners.

However, Reeves was clear that the UK would not rejoin the EU single market or customs union under Labour.

Mutual agreements to help open markets

In Northern Ireland, Keir Starmer’s party is “committed to implementing the Windsor Framework in good faith”, the manifesto says, suggesting Labour is unlikely to make any big changes to the deal agreed by PM Rishi Sunak with the EU.

The manifesto also offers “some expansions on key business and trade policies that Labour has been drip-feeding for the past year or two”, says Grace Thompson, Institute of Export & International Trade UK public affairs lead. She welcomes the promise of the publication of a much-anticipated trade strategy to promote greater access to international markets, as well as the suggestion of an Industrial Strategy Council to combat “short-term economic policymaking”.

Labour has also confirmed it will seek a trade deal with India. The party refrained from explicitly promising an agreement with the Gulf Cooperation Council, but indicated it wanted “deeper trade co-operation with partners across the Gulf”, Thompson notes.

Other Labour pledges include securing “a mutual recognition agreement for professional qualifications” with the EU, which Labour believes will “help open up markets for UK service exporters”.

Conservatives promise free trade agreements

Rishi Sunak

Source: Simon Walker / No 10 Downing Street

A promise from the Conservatives to finally complete free trade agreements

The Tories carry the burden of proof after leading the country through Brexit and subsequent trade policy development, such as the Border Target Operating Model (BTOM), which introduced new border checks on EU goods this year, and deals with Australia and New Zealand.

Its manifesto talks of the UK being a “global exporting superpower”, but skates on thin ice, after FDF figures last month showed Q1 exports in 2024 were at their lowest level in 15 years barring a Covid blip.

Most of the pledges amount to little more than a continuation of the Department for Business & Trade’s work so far.

The manifesto promises to finally “complete free trade agreements with India and the Gulf Cooperation Council”, which have been in the works for a couple of years. Other targets for FTA negotiations are Israel and Switzerland. Equally, the party wants to land the UK’s ascension to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and improve bilateral relations with the group’s members including Japan, Mexico, Malaysia and Canada. All of these take time but could provide a welcome boost to British exporters.

Digital processes to reduce friction

In the upcoming review of the EU-UK Trade and Cooperation Agreement, the Conservatives pledge to “take a tough approach” that ensures the EU “are meeting their commitments” and not “discriminating against our exporters”. The fact exports from the UK to the EU fell after 2021 due not to discrimination but to costly checks the bloc set up after the UK waved its single market benefits is roundly ignored.

The party is expected to continue the rollout of BTOM and its Single Trade Window, the digital platform for all border processes and systems that is meant to reduce trade friction not just with the EU but with the rest of the world too.

animal welfare and food safety standards have always been high on the agenda for the Tories, who say they will “always stand up for UK agriculture in our trade deals” – a claim slammed by farmers who feel the Australia and New Zealand deal left them worse off, according to a senior farming industry figure.

On trade between Great Britain and the island of Ireland, the party will “implement all its commitments in the Windsor Framework”, including “measures to strengthen Northern Ireland’s place in the union”. It will mean pressing on with ‘Not for EU’ labelling in the UK, in efforts to prevent GB suppliers discriminating against NI markets, where the requirement is already in place.

Liberal Democrats’ four-stage roadmap

Ed Davey liberal democrats lib dems politics

Lib Dems promise to reduce barriers to trade between Britain, Northern Ireland and the Republic of Ireland

Key to the Lib Dem trade strategy is a four-stage roadmap to rejoining the EU single market, perhaps unsurprising given the hard pro-EU stance the party has showed in the past.

The Lib Dems claim the UK has “less clout in trade negotiations” since leaving the bloc, and blames fractious relations with the EU for the increase in food prices and slump in trade with the rest of the continent.

Its manifesto sets out a pathway to renewing “trust and friendship” between London and Brussels – including improving foreign policy cooperation, seeking veterinary and plant health agreements, and eventually rejoining the European customs union.

The plans will be “a ray of light” for traders facing higher export paperwork and customs fees, according to Lynch, as the party “recognises the damage that this area of Brexit has caused to UK food exports”.

Ed Davey’s party promises to “reduce barriers to trade between Great Britain, Northern Ireland and the Republic of Ireland”, but stops short of explaining whether there would be changes to the current Windsor Framework deal.

The party also pledges to give SMEs tailored support as well as a single platform for all trade resources to help boost trade for smaller businesses, who were particularly affected by Brexit.

Let’s hope the next government’s more sensible approach to trade, in relation to the food industry at least, is implemented quickly

Mark Lynch, partner at Oghma Partners

Under its ‘fair deal’ proposals, all imported foods would need to be checked to meet domestic health and welfare standards – meaning foie gras and any food produced using antibiotic growth promoters would be banned, in a similar move to Labour’s anti-foie gras stance.

The Lib Dems would also cut trade barriers with other countries to improve exports. Whisky, for example, would benefit from a planned excise duty restructure that would boost exports for the sector.

A vital part of its plan is to give parliament “real power” to scrutinise deals, set policy, and sign-off on both negotiation mandates and completed trade agreements.

Making the sanctions regime stricter with a total crackdown on Russian oligarchs, banning imports from areas linked to rights abuses, and putting environment and human rights at the heart of trade policy are further priorities.

“We will prioritise the depth and quality of trade deals, ensuring they deliver benefits for the whole country,” the manifesto says.

Whichever way the new government’s trade policy goes, experts and industry agree on a need for a clear pathway to exports growth – inevitably including rebuilding relations with the EU, Lynch says.

“Let’s hope the next government’s more sensible approach to trade, in relation to the food industry at least, is implemented quickly,” he adds.