Does Reeves want EU trade ties to weather a Trump trade war?

Does Reeves want EU trade ties to weather a Trump trade war?

The Chancellor is calling for a “reset” in relations with the European Union but does Reeves want EU trade ties to weather a Trump trade war?

The BBC is reporting that Rachel Reeves wants to boost economic growth by fostering closer relations with the EU, in yet another sign that the Labour Party considers Brexit to have been a costly failure.

There are no plans to rejoin the EU, we’re told – and this is probably because the UK would come in as a junior partner, having lost all the privileges it had built up since originally joining in the 1970s.

But there could be a push to remove the “huge regulatory and paperwork burdens” that the Tories foisted on businesses that trade with the EU after Brexit. Ironically, Brexiteers had claimed that leaving the bloc would lead to a “bonfire of red tape”; in fact, they buried our businesses under a mountain of it.

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Why the sudden interest, though? Could it be because incoming US President Donald Trump is threatening to crash the world’s economy with a trade war?

He is threatening to impose tariffs of up to 20 per cent on all goods imported into the United States.

Economist Richard Murphy has an idea about Trump’s reasons for this:

So it seems Trump wants to crash the world economy in order to trigger a “quantitative easing” bailout that will hugely inflate the value of assets owned by people who are already enormously rich, while harming the world’s poor people – possibly to death, in some parts of the world.

If Reeves is looking for a way to discourage him from trying this – or to insulate the UK against the possibility that he will – then her move is to be welcomed.

But you can be sure that Brexiteers and Trump supporters (Nigel Farage?) will squeal like the pigs they resemble* in a bid to influence the gullible. Let’s hope they get short shrift.

*With apologies to pig-lovers everywhere; you know the comparison I am making so please don’t come back with tiresome “you’re being unfair to pigs” comment.


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