Latest news with #WindsorAgreement
Yahoo
29-05-2025
- Business
- Yahoo
Bailey calls for closer EU ties to counter ‘negative effects' of Brexit
Andrew Bailey has urged Sir Keir Starmer to build closer links with the EU to counter the 'negative effects' of Brexit and boost trade in the face of Donald Trump's tariffs. The Governor of the Bank of England cheered the Prime Minister's deal with Brussels and said that more could be done to bolster commercial links across the Channel. 'Just as the Windsor Agreement on trade involving the UK and Ireland was a welcome step forward, so too are the initiatives of the current UK Government to rebuild trade between the UK and EU,' Mr Bailey told an audience in Dublin. His words risk being seen as controversial, as the Governor's predecessor Mark Carney, who is now Prime Minister of Canada, frequently angered Brexit supporters through his perceived criticism of the decision to leave the EU. Mr Bailey stressed that he 'take[s] no position on Brexit per se' but was concerned with the economic implications. 'If the level of trade is lowered by some action, it will have an effect to reduce productivity growth and thus overall growth. Just as tariffs, by increasing the cost, can reduce the scale of trade, the same goes for the type of non-tariff barrier that Brexit has created,' the Governor said. 'This does not mean that Brexit is wrong, because there can be other reasons for it, but it does suggest, I think powerfully, that we should do all we can to minimise negative effects on trade.' His comments come after Sir Keir Starmer signed a 'reset' deal with the EU, which will force the UK to follow European food standards and submit to the European Court of Justice. The agreement means fewer customs checks on exports to EU nations, but was dismissed as 'the worst of both worlds' by Brexiteers and Labour rebels. Sir Keir has been criticised for agreeing to follow EU rules without having a say over their design, whilst also potentially imperilling a deal with the US by signing up to Brussels' standards. Mr Bailey urged the Prime Minister to go further than the 'reset' deal and seek closer ties with the EU in financial markets. 'The scale of investment needed requires access to global capital, supported by open financial markets,' he said. 'As such, there is merit in seeking to increase the openness of our financial markets by reducing non-tariff barriers.' In the same speech, Mr Bailey also acknowledged there were problems in global trade that needed to be addressed. He said Mr Trump's assault on the trading system was not 'wrong-headed' and agreed with the US president's claim that the international economy was suffering from 'unsustainable trade imbalances'. The Governor highlighted Mr Trump's argument that 'the rules of the world trade system … have broken down,' pointing to China's vast use of subsidies as a factor driving imbalances. He cited research from the International Monetary Fund that shows Beijing has implemented thousands of support schemes for critical industries in recent years. Mr Bailey said: 'While I am an unshaken believer in free trade, I do accept that the system has come under too much strain, we have to work hard now to rebuild it, and it is incorrect to dismiss those who argue for restrictions on trade as just wrong-headed. 'We need to understand what lies behind these arguments. That said, I want to get back to an open trading system.' The Governor said said the US president's policies were more of a symptom of the problems in trade than the cause. 'If it is believed that tariff action is needed to create the shock and awe to get these issues on to the table and dealt with, then something has gone wrong with the multilateral system, and we need to deal with that,' he said. The Governor warned against 'retreat[ing] indiscriminately from global trade', arguing 'diversifying supply chains among reliable partners who abide by international law' was the best way to protect against geopolitical risks. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
29-05-2025
- Business
- Yahoo
Bailey calls for closer EU ties to counter ‘negative effects' of Brexit
Andrew Bailey has urged Sir Keir Starmer to build closer links with the EU to counter the 'negative effects' of Brexit and boost trade in the face of Donald Trump's tariffs. The Governor of the Bank of England cheered the Prime Minister's deal with Brussels and said that more could be done to bolster commercial links across the Channel. 'Just as the Windsor Agreement on trade involving the UK and Ireland was a welcome step forward, so too are the initiatives of the current UK Government to rebuild trade between the UK and EU,' Mr Bailey told an audience in Dublin. His words risk being seen as controversial, as the Governor's predecessor Mark Carney, who is now Prime Minister of Canada, frequently angered Brexit supporters through his perceived criticism of the decision to leave the EU. Mr Bailey stressed that he 'take[s] no position on Brexit per se' but was concerned with the economic implications. 'If the level of trade is lowered by some action, it will have an effect to reduce productivity growth and thus overall growth. Just as tariffs, by increasing the cost, can reduce the scale of trade, the same goes for the type of non-tariff barrier that Brexit has created,' the Governor said. 'This does not mean that Brexit is wrong, because there can be other reasons for it, but it does suggest, I think powerfully, that we should do all we can to minimise negative effects on trade.' His comments come after Sir Keir Starmer signed a 'reset' deal with the EU, which will force the UK to follow European food standards and submit to the European Court of Justice. The agreement means fewer customs checks on exports to EU nations, but was dismissed as 'the worst of both worlds' by Brexiteers and Labour rebels. Sir Keir has been criticised for agreeing to follow EU rules without having a say over their design, whilst also potentially imperilling a deal with the US by signing up to Brussels' standards. Mr Bailey urged the Prime Minister to go further than the 'reset' deal and seek closer ties with the EU in financial markets. 'The scale of investment needed requires access to global capital, supported by open financial markets,' he said. 'As such, there is merit in seeking to increase the openness of our financial markets by reducing non-tariff barriers.' In the same speech, Mr Bailey also acknowledged there were problems in global trade that needed to be addressed. He said Mr Trump's assault on the trading system was not 'wrong-headed' and agreed with the US president's claim that the international economy was suffering from 'unsustainable trade imbalances'. The Governor highlighted Mr Trump's argument that 'the rules of the world trade system … have broken down,' pointing to China's vast use of subsidies as a factor driving imbalances. He cited research from the International Monetary Fund that shows Beijing has implemented thousands of support schemes for critical industries in recent years. Mr Bailey said: 'While I am an unshaken believer in free trade, I do accept that the system has come under too much strain, we have to work hard now to rebuild it, and it is incorrect to dismiss those who argue for restrictions on trade as just wrong-headed. 'We need to understand what lies behind these arguments. That said, I want to get back to an open trading system.' The Governor said said the US president's policies were more of a symptom of the problems in trade than the cause. 'If it is believed that tariff action is needed to create the shock and awe to get these issues on to the table and dealt with, then something has gone wrong with the multilateral system, and we need to deal with that,' he said. The Governor warned against 'retreat[ing] indiscriminately from global trade', arguing 'diversifying supply chains among reliable partners who abide by international law' was the best way to protect against geopolitical risks. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Irish Post
20-05-2025
- Business
- Irish Post
Thriving Northern Irish food distribution firm claims access to UK and EU markets is key to success
A FOOD distribution firm in Northern Ireland is reaping the rewards of having access to both the UK and EU markets. NI Secretary Hilary Benn visits the PRM food distribution service in Lisburn (Pics: Lisburn-based PRM says their unique positioning in the North, where the Windsor Framework, a post-Brexit deal struck between Britain and the EU, allows the free movement of goods between Northern Ireland and Great Britain and the EU, is driving their success. 'While Brexit brought with it understandable apprehension, there's no doubt that the Windsor Agreement has unlocked unique advantages for businesses and individuals in Northern Ireland,' Philip Morrow, CEO and Founder of PRM Group, said this week. 'We have found ourselves in a very favourable position perfectly positioned between the UK and EU with full access to both markets,' he explained. 'That's an enviable place to be, and it's been instrumental in shaping our investment decisions and future growth,' he added. NI Secretary Hilary Benn visited the site in Northern Ireland this month (Pics: 'At PRM, it's allowed us to commit £15 million to expanding our Lisburn headquarters and create over 40 new jobs.' Mr Morrow believes more businesses in the North should be capitulating on the unique trading advantage their geographical position gives them. 'Businesses here have been handed the key to the best of both worlds and that's something we should champion, celebrate and capitalise on,' he said. NI Secretary Hilary Benn recently visited PRM's offices in Lisburn, as newly released figures from the Northern Ireland Statistics and Research Agency confirmed the economy in the North grew faster than the UK as a whole in the final quarter of 2024. 'PRM's expansion is a great example of how dual market access is helping Northern Ireland's businesses to expand and create more jobs,' Mr Benn said. 'With full access to both the UK and EU markets, and now new trade opportunities with the US and India, Northern Ireland is uniquely placed for success,' he added. 'These are tangible benefits that are strengthening Northern Ireland's economy and creating prosperity.' See More: Brexit, Lisburn, Northern Ireland, PRM, Windsor Framework
