Investing.com -- Bank of England (BoE) Governor Andrew Bailey said the U.K. should work to rebuild its trade ties with the European Union (EU), telling the BBC that stronger trade with the bloc would support the country’s economy.
“Having a more open economy to trade with the European Union,” Bailey said. “It would be beneficial.”
His comments come ahead of a U.K.-EU summit scheduled for May 19, which is expected to include discussions on deepening defence cooperation and potentially easing trade barriers.
Asked about the potential for a reset in U.K.-EU relations following a limited bilateral trade deal with the United States, Bailey said that reversing the post-Brexit decline in EU trade would be a welcome development. Though he refrained from taking a position on Brexit directly, he stressed the importance of trade continuity.
“It is important we do everything we can to ensure that whatever decisions are taken on the Brexit front do not damage the long-term trade position. So I hope that we can use this to start to rebuild that relationship,” he said.
The EU remains the U.K.’s largest trading partner.
The trade deal struck between the U.S. and U.K. on Thursday leaves room for Britain to pursue a veterinary agreement with the EU, potentially aligning standards to ease post-Brexit checks on food, agricultural, and fish exports.
Under the agreement, the U.S. will cut import tariffs on a limited number of British-made cars and allow some steel and aluminium shipments to enter tariff-free. However, a 10% duty will still apply to most U.K. goods.
Bailey told the BBC that the U.K.’s recent trade agreements send a strong signal globally, showing that such deals remain both possible and vital. “Trade deals can be done, and the trade is important… I hope that we can use these deals to rebuild the world trading system,” he said.