Wubi News

UK now best placed country on trade - Reeves

2025-05-20 09:00:02

It appears the government had the EU, the UK's largest trading partner, in mind during its talks with the US and India.

As part of the deal with the EU, in return for extending current fishing rules, checks have been reduced on UK food exports.

Reeves said UK officials had made it clear to the Trump administration and India that food standards were not up for negotiation in their deals.

"We increased the quota for the import of beef from the US, it was all still on the high standards that we pride ourselves in, and in part because standards matter to us, but also because we wanted to secure this agreement with the EU, which is by far the biggest market for UK agriculture and fishing," the chancellor said.

The chancellor received a boost last week when the latest official figures revealed the UK economy had grown by 0.7% in the first three months of the year.

The growth was bigger than expected but is not forecast to last.

The government has made growing the economy its main priority in order to boost living standards. A higher growth rate usually means people are getting paid a little bit more, can spend more and more jobs are created by businesses investing.

Reeves suggested UK growth forecasts could be boosted because of the better figures, but economists have warned US tariffs and the chancellor's decision to raise National Insurance for employers could hit the economy.

"We are forecasting growth of 1% this year, and we had 0.7% in Q1 and they'll take into account the new trade deals that have been secured," she said.