Burnham’s caution toward Brussels gets jolt from EU-Canada deal

Andy Burnham has been less reluctant than Starmer when it comes to setting out the negative economic impact of the U.K. leaving the EU. Photo by Henry NICHOLLS/AFP via Getty Images

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The sweeping trade-and-security deal being drafted by EU and Canadian officials heaps pressure on Burnham to form a clearer approach toward the bloc. While the new British prime minister has been trying to reassure Brussels that stronger ties are consistent with his domestically focused agenda, European officials have privately aired the belief that relations with Ottawa could soon be closer than with London

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The Canada overtures risks overshadowing the U.K.’s plans for a summit with the EU planned in early November, a gathering already delayed by months due in part to Burnham’s efforts to depose his predecessor, Keir Starmer. Negotiations ahead of that meeting have been hampered by longstanding policy disputes, including Burnham’s adherence to Starmer-era campaign vows not to reverse the 2016 leave vote or rejoin the single market or customs union.

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Free from any Brexit baggage, the EU and Canada are working toward a new-look partnership that they hope could help them counter powers like China and the United States. European Commission President Ursula von der Leyen is expected to announce the plans at her state of the union address on Sept. 16 in Strasbourg, France, with Carney in attendance.

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Burnham, meanwhile, has only begun to articulate his Europe policy, with French President Emmanuel Macron becoming the first foreign leader to visit Downing Street since the change in prime minister in July. Although Burnham had once been among the Labour Party’s most prominent advocates for reversing Brexit, the former Manchester mayor now says he doesn’t want to “re-run” the old arguments.

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Burnham flagged concerns about what Brussels’ “Made in Europe” plans could mean for British industry, among other issues, in remarks to the House of Commons last week.

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“I do want a closer relationship. I will build on the work of my predecessor,” Burnham told members of Parliament last week. “It is imperative, I believe, that we work hard to get a good deal for British Steel and for British farming as part of that new deal.”

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Brexit may have already cost the British economy about 2.5 per cent of gross domestic product, according Bloomberg Economics calculations published in June. That works out to about £30 billion (US$41 billion) in forgone annual tax revenue.

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At the upcoming U.K.-EU summit in Brussels, the two sides expect to sign off on deals to streamline the movement of food and agricultural goods, link their energy markets, and agree a Youth Experience Scheme. One sticking point remains over how favourable an offer the U.K. is prepared to give European nationals on university tuition costs, according to people familiar with the talks. The EU is holding out on a deal and pushing to have fees in line with British students — something the U.K. government says isn’t on the table.