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The EU’s Brexit chief has ruled out renegotiating Britain’s trade deal until 2026, dashing hopes it could be improved and prevent businesses fleeing the UK.
Maroš Šefčovič said that the trade and cooperation agreement had only been in force for two years and was not yet being used to its full potential.
The deal, signed by Boris Johnson on 30 December 2020, has been criticised by business groups for increasing costs and bureaucracy compared to membership of the EU single market and customs union.
“We have received quite a lot of questions and I’ve seen that there is increased interest in the TCA review. As far as our calendar goes, I think that it’s more for 2026,” Mr Šefčovič told the EU-UK forum on Monday.
He added that he did not want to put the deal “in the shredder”.
Labour leader Keir Starmer said last month he would seek an “improved” trade deal with the EU after car manufacturers warned about the future of their UK presence, thanks to Brexit.
Polls currently suggest Sir Keir could become prime minister next year, but Mr Šefčovič's warning means he would have to wait if he wanted to change the terms of trade.
But many problems caused by the looser trade arrangements would be difficult to overcome outside the single market and customs union, which Sir Keir has explicitly ruled out rejoining.
Make UK, which represents British manufacturers, say the threadbare nature of the deal compared to membership of the single market has “ramped up costs, caused import and export delays, and is hampering smooth trade”.