Closer EU trade ties greater prize for UK than making separate deals, minister says

Britain will benefit from much closer trading relations with the EU even if that means giving up its ability to negotiate free trade agreements, according to Douglas Alexander, the Scotland secretary. Speaking from a trade delegation to India, Alexander emphasized the economic advantages of joint trading arrangements with Europe.

Alexander, who previously negotiated deals with India and the US as a trade minister under Keir Starmer, believes that arrangements with the EU—whether through a customs union or full membership—would yield greater economic rewards. This perspective comes as the EU has recently secured a similar deal with India.

When Starmer was prime minister, the government argued against rejoining the EU, citing the need to abandon existing trade agreements with other countries. However, Alexander's comments reflect a shift in the government's stance under Andy Burnham, who recently called for a "serious dialogue" regarding the UK's relationship with the EU, including the possibility of re-entry.

During his visit to India, Alexander noted the positive developments since the Indian trade agreement took effect earlier this year, which has led to a 10-15% decrease in the price of scotch whisky in India. However, he reiterated that the economic benefits of trading agreements with the EU would be even more significant.