Should the UK strike a new trade deal with the EU?

After securing economic pacts with India and the US, all eyes will be on Keir Starmer as he attempts a hat-trick with Brussels at next week's summit. But finance experts are split on whether we should cosy up with our old rivals

- By Harvey Jones

TWO down, one to go. That’s the position Keir Starmer finds himself in after striking two major trade deals in three days last week. First with India, then with Donald Trump's US. Next up: the European Union. The Prime Minister has now secured valuable agreements with both the world’s most populous country and the largest economy of them all.

While both deals have drawn criticism, Starmer will still view them as big wins. Now he'll be keen to complete the hat-trick.

On Monday, he will host a summit in London aimed at resetting relations with the EU. Ursula von der Leyen, president of the European Commission, will attend.

This will be the first UK-EU summit since we left the bloc. While the official focus is on strengthening defence and security co-operation against Russia’s Vladimir Putin, it’s expected to go much further.

European Council president António Costa has said the goal is to build “the closest relationship it will be possible to build together”. Starmer is also keen to deepen what his spokesperson describes as a “unique relationship” with the EU. Trade is likely to be high on the agenda.

There’s been plenty of talk of “a new era of constructive and pragmatic collaboration”, but there are limits.

Starmer has repeatedly ruled out rejoining the EU single market or customs union, or restoring freedom of movement. But he is looking to update the Trade and Cooperation Agreement signed in 2020, which is up for review in 2026. There’s also talk of a veterinary pact to ease the flow of British agricultural exports and a deal on mutual recognition of professional qualifications. The EU has even floated the idea of a youth mobility scheme for under-30s, although Starmer appears to have dismissed that for now.

The PM will once again be walking a tightrope. With Nigel Farage’s Reform UK party threatening, the pressure is on for another major win. So how should Starmer and Chancellor Rachel Reeves move forward?