Starmer prepares for parliamentary battles over his EU ‘reset’ policy | Trade policy

Keir Starmer is set to face fresh debate over the EU’s “reset” with plans to introduce a bill that could lead to closer regulatory ties with Brussels.

The legislation aims to introduce a harmonization mechanism for agri-food and electricity trade agreements that have been agreed with EU leaders but are still in the negotiation phase.

The bill would give ministers the power to go beyond powers the UK has agreed to so far, potentially giving future administrations the power to harmonize standards in other sectors and keep pace with new EU regulations.

The government plans to run the bill in parallel with negotiations with Brussels, meaning MPs will start voting on the legislation before the deal is finalised.

Government sources said they were preparing for major wars but this could be an opportunity for Starmer to advocate closer ties with Europe as a way of boosting the UK economy. The bill is expected to become law within the next few months and move to the next parliamentary session.

The Liberal Democrats have promised to amend the bill to bring forward a binding vote on the customs union. More than a dozen Labor MPs rebelled when the Liberal Democrats held their final opposition day vote on the issue.

Opposition politicians are likely to raise significant objections if the bill gives broad powers to ministers and causes gridlock in the House of Lords.

Liberal Democrat Cabinet Office spokeswoman Lisa Smart said: “On a bill of this scale and scope, it would be a shameful betrayal of voters to simply outline the obscure move and then fill in the details with the stroke of a ministerial pen.”

Starmer’s spokesman said on Monday that it was possible for the UK to negotiate more sector-by-sector access, often likened to a “Swiss-style” deal, and it might be prepared to pay the price for it.

“The deals we have made deliver huge benefits to British taxpayers by supporting British businesses, supporting British jobs and putting more money in people’s pockets, and in total they will add around £9bn to our economy by 2040,” they added.

“We have always been clear that some of this work will involve trade-offs, but as a sovereign nation we will make sensible, pragmatic choices that are in the national interest and to the benefit of the people of the United Kingdom.”

Starmer signaled on Sunday that Britain might seek sectoral deals to deepen access to the single market beyond what was agreed with EU leaders in May, saying this was preferable to a customs union that could undermine other trade agreements.

The Prime Minister signed the political agreement that will pave the way for a new agri-food agreement. This agreement, known as the SPS agreement, eliminates red tape on food and beverage exports, completely eliminating some routine controls on animal and plant products.

In return, the UK will agree to dynamic alignment on EU food standards and for the European Court of Justice to take a role in overseeing the agreement.

Both sides expressed hope that a final agreement could be signed in the second half of this year. The UK has also started negotiations to join the EU’s internal electricity market but European leaders have confirmed they expect the UK to pay for access. Currency tensions have already disrupted talks over Britain’s participation in a €150bn security action for the European (Secure) fund.

Starmer told the BBC on Sunday that he had once argued for a customs union but “a lot of water is flowing under the bridge now” and it would undermine deals with India and the US. “To achieve greater harmony, it is better for us to look at the single market rather than the customs union,” he said.

The comments were seen as a response to ministers, including Wes Streeting, who suggested the UK would benefit from exploring rejoining the customs union. The health minister told the Observer it would bring “tremendous economic benefits”.

The Conservatives have said they will insist that the final details of negotiations with the EU be subject to full parliamentary scrutiny. Priti Patel, the shadow foreign secretary, said: “Keir Starmer came into government with no plan and lacks the backbone to tackle the serious problems facing our country. So he is trying to reopen old wounds over Brexit.”

“By doing so, he is preparing to give himself vague and sweeping powers to change our relationship with the EU, in the vain belief that this will make him more popular.”

Liberal Democrat leader Ed Davey said his party would use the bill as a chance to force Labor MPs to take a position on a closer relationship with Europe.

The party is planning an amendment that would task the government with starting negotiations with the EU on establishing a special UK-EU customs union by 2030. The party also stated that it would seek to obtain a meaningful vote on this amendment at the committee or report stage.

A Cabinet Office spokesman said: “The UK-EU reset enhances our diplomatic, economic and security cooperation and will be worth £9bn to the UK economy by 2040. We will legislate to achieve this and further details of the bill will be announced in due course.”