Keir Starmer’s proposed agricultural trade deal with Brussels has been condemned as a “monumental act of self-harm” that could shrink the economy by £15billion.
A dammning new report has suggested the UK was “effectively ceding power over British rules to the EU and causing a colossal hit to the British economy”.
The Growth Commission, founded by Liz Truss, warned that the sanitary and phytosanitary (SPS) agreement signed in May, under which the UK will effectively copy EU food and pesticide rules.
It characterised the move as “backward and economically harmful,” arguing it would undermine Britain’s ability to pursue independent trade relationships.
Shanker Singham, the Commission’s chairman, said: “Hardwiring into UK law SPS regulations, which are already costing EU economies dear, would be a monumental act of self-harm that would be extremely difficult to reverse.“
“The European regulatory system is one of the most anti-competitive and growth-destroying regulatory systems in the world … With a pressing need to grow its economy.
“The last thing a country like the UK should be doing is aligning to European regulations.”
The think tank argues that alignment could also damage ties with the US, risk the pharmaceutical sector and complicate Britain’s position in the trans-Pacific trade bloc.
Keir Starmer has been warned that closer ties with EU would ‘cost taxpayers £15bn’
|
GETTY
“Having extricated ourselves from the … European Union, we now have the freedom to chart our own course when it comes to rules and regulations,” Mr Singham continued.
“We can and should have more pro-competitive regulations … which is the norm for non-EU, non-China markets. It would be madness now to hand back control of our regulations to Brussels.”
Under the terms of the deal, Brussels will eliminate nearly all import checks introduced after Brexit in exchange for the UK bringing its food production rules into line with European standards.
The arrangement forms a cornerstone of the Prime Minister’s ambition to strengthen economic ties with Europe, effectively returning Britain to a substantial portion of the single market.
The planned agricultural trade deal with Brussels has been condemned as a ‘monumental act of self-harm’
|
GETTY
British farmers have voiced concerns that the new rules will leave them at a competitive disadvantage.
The think tank also raised concerns about the country’s membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
It suggested that the deal could harm trade with its eleven members, including Australia and New Zealand.
The Cabinet Office firmly rejected the think tank’s analysis, maintaining that the agreement would cut red tape and boost the economy by £5.1bn.
A government spokesman stated: “No one seriously worried about British business competitiveness would argue for more paperwork, higher costs and longer queues at the border.
“Government analysis shows that a food and drink trade deal will add £5.1bn to the economy.”
Mr Singham countered that the EU’s regulatory framework already costs its 27 member states approximately £34bn annually.
He described the European rules as among “the most anti-competitive and growth-destroying” in the world.