STORY
The UK Government has proposed creating a single market for goods with the European Union as part of efforts to deepen post-Brexit trade links, according to reports. Reuters said the proposal had been put forward during discussions with Brussels, with ministers seeking ways to reduce barriers for businesses while maintaining Labour’s stated red lines on free movement and full single market membership.
The EU is reported to have rejected the proposal in its current form, arguing instead that the UK would need to consider options such as a customs union or closer alignment with the European Economic Area. The Government has said it wants a closer and more stable relationship with the EU, particularly on food standards, emissions trading, defence procurement and industrial cooperation.
The talks come ahead of a planned UK-EU summit in July, where both sides are expected to seek progress on trade and cooperation measures. The issue is politically sensitive for Labour, with ministers facing pressure from business groups for closer alignment and from opponents who warn against reopening major elements of the Brexit settlement.