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The Prime Minister's particularly significant tilt on the UK's following Brexit ties to the bloc recently was designed to send a message to business, to Brussels, and to other European capitals, alongside his political supporters.

A New Framework for Dialogue

Tighter following Brexit trade links are projected to be considered as through an annual process of government-to-government discussions as opposed to exclusively at the ongoing formal review of the trade and cooperation agreement.

This served as the official answer to parliamentary pressure regarding a broader renegotiation of relations that suggested rejoining the customs union.

Internal Momentum

A number of backbenchers, labor representatives and senior ministers have lent support to suggestions formalised by legislative actions last year that led to a symbolic resolution.

"We are better prioritising the EU's internal market as opposed to the customs bloc for our future cooperation," Sir Keir Starmer remarked.

He stated unequivocally that rejoining the customs union was not the current focus, as it undermines what he views as a major accomplishment of the past year: the signing of best-in-class deals with the America and India, with more in the pipeline in the Middle East.

Emphasising the Single Market

Rather than the common external tariff, his focus is on developing a "stronger bond" with the internal market, which would not mean abandoning those international pacts globally.

When the UK officially exited the EU in the start of 2021, the prevailing deal emphasised liberation from EU standards rather than seamless commerce for British firms across Europe.

The current reset proposes synchronising with EU standards in three key areas to help the easier passage of trade: agri-food goods, electricity, and carbon trading.

Business Demands

A major business group last month released a detailed set of additional asks in various industries to assist exporters deal with post-Brexit red tape that has impacted the trade of goods.

Its own survey found that a significant number of companies surveyed believed that the current arrangement was failing to support business expansion.

A range of additional sectors could, realistically, see a similar approach – alignment with EU regulations – in return for minimising trade obstacles across industry, in the car industry, industrial chemicals, or for example in arrangements for VAT.

EU Reaction

EU governments were disappointed by the modest aims in the previous recalibration, notably the UK dismissal of ideas floated by some commentators regarding the virtual readmission of British exports to the single market.

The exact terms on electricity and agricultural regulations is remains to be agreed. A proposal for UK companies to be involved in a major defence loan fund has stalled over the cost of the financial commitment, after opposition from the French government. Another nation has joined the initiative.

Broader Environment

The UK has reached an agreement to rejoin a academic exchange programme and to continue talks on a youth jobs scheme. This has facilitated progress for subsequent negotiations.

Analysts close to government say that the issuing of a American national security strategy has altered the environment on UK ties to the EU.

The strategy said that the US would "encourage pushback" to continental trends and commended the "increasing clout" of nationalist groups.

In government circles, there is an acknowledgement that the rapidly changing world has changed again.

Home Pressures

On the national stage, the leadership also foresees being challenged on European policy by one opposition party, but additionally others, which is focusing on its stronghold regions in May's elections.

The Prime Minister's latest comments are the product of a confluence of business needs, electoral strategy and geopolitics as the UK enters a year that will mark the ten-year mark of the historic Brexit referendum.