Bank of England Governor Andrew Bailey has emphasized the necessity for the United Kingdom to rebuild its trade relationship with the European Union to address the economic challenges that have emerged since Brexit. In an interview with the BBC, Bailey stated that enhancing trade with the EU would be beneficial for the UK economy, particularly in reversing the decline in goods trade experienced in recent years.
Bailey’s remarks come ahead of a UK-EU summit scheduled for May 19, which aims to discuss deepening defense cooperation and potentially easing trade barriers. He highlighted the importance of ensuring that decisions related to Brexit do not damage the UK’s long-term trade position and expressed hope that recent trade agreements could serve as a foundation for rebuilding relationships.
The Governor also commented on the recent UK-US trade deal, noting that while it reduces tariffs on specific goods such as cars, steel, and aluminum, a general 10% tariff still applies to most UK goods. He described the deal as “good news” but acknowledged that it results in overall higher tariffs on British exports to the US than before.
Bailey underscored the significance of maintaining an open global trading system and urged efforts to improve the UK’s trade relationship with the EU, which remains Britain’s largest trading partner. He emphasized that rebuilding trade ties with the EU would support the country’s economy and help mitigate inflationary pressures.
