Douglas Alexander, Scotland secretary, has told The Guardian that Britain would gain more from joint trading arrangements with the EU than from negotiating separate deals with other nations, even if that meant giving up independence in trade policy. Speaking from a trade delegation to India this week, Alexander said geography still matters in commerce and that the EU remains the UK's largest trading partner by a significant margin. He noted that Britain trades almost twice as much with Europe as it does with the United States, its largest single-country partner.
Alexander, who previously negotiated trade agreements with India and the US as a trade minister, pointed to economic analysis showing that membership of the Pacific trade grouping would boost UK GDP by less than a tenth of 1 per cent in the long term. He contrasted this with estimates of the structural damage to the British economy from Brexit, describing the country as already paying a real economic price through new barriers with European neighbours.
His comments reflect a significant shift in government position under Prime Minister Andy Burnham, who called this week for serious dialogue on the UK's relations with the EU, including possible re-entry. Alexander made clear he was not backing any particular method of achieving closer EU ties. The Guardian reported that prices of Scotch whisky in India have fallen by 10-15 per cent since an Indian trade agreement came into force earlier this year, though ministers say there remain implementation challenges for smaller businesses.