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The Premier's very notable shift on the United Kingdom's after-Brexit relations to the European Union this weekend was designed to communicate to industry, to EU officials, and to fellow EU nations, in addition to his party members.

A New Approach for Engagement

Stronger after-Brexit trade links are now expected to be examined as part of an annual process of government-to-government discussions instead of just at this year's structured evaluation of the trade and cooperation agreement.

This represented the official answer to parliamentary pressure regarding a broader Brexit reset that suggested returning to the customs union.

Internal Calls

Several parliamentarians, trade union officials and government figures have added their voices to ideas highlighted by a vote last year that culminated in a advisory motion.

"We are better prioritising the single market as opposed to the customs union for our future cooperation," the Prime Minister remarked.

He gave a clear answer that re-entering the tariff union was not the priority, as it undermines what he considers a key achievement of the previous year: the securing of best-in-class deals with the US and India, with additional to come in the Middle East.

Emphasising the Internal Market

Instead of the common external tariff, his focus is on developing a "stronger bond" with the single market, which would not mean tearing up those new trade deals with other nations.

When the UK completed its departure from the EU in the start of 2021, the agreement at the time stressed liberation from EU standards rather than barrier-free exports for British firms across Europe.

The current reset outlines harmonising with EU rules in specific fields to facilitate the easier passage of trade: agricultural products, electricity, and emissions trading.

Industry Requests

A prominent industry organisation last month released a detailed set of further requests in various industries to help exporters deal with administrative barriers that has hit the export of products.

Its own survey found that a majority of companies surveyed agreed that the existing agreement was impeding sales growth.

A range of additional sectors could, potentially, see a similar approach – convergence with EU regulations – in as a trade-off for minimising post-Brexit barriers across industry, in vehicles, industrial chemicals, or for example in arrangements for VAT.

Continental Response

Member states were underwhelmed by the modest aims in earlier discussions, specifically the UK dismissal of proposals put forward by some analysts regarding the virtual readmission of British exports to the single market.

The exact terms on power sharing and food and farm standards is remains to be settled. A proposal for UK companies to be involved in a €150bn security initiative has been delayed over the size of the contribution, after some objections from France. a non-EU country has joined the scheme.

Broader Landscape

The UK has concluded arrangements to rejoin a university exchange programme and to continue talks on a youth mobility program. This has facilitated progress for further UK-EU talks.

Some UK insiders say that the issuing of a American national security strategy has shifted the environment on UK ties to the EU.

The paper stated that the US would "foster opposition" to Europe's current trajectory and applauded the "rising power" of nationalist groups.

Within the administration, there is some recognition that the international situation has changed again.

Home Calculations

At home, the administration also anticipates being pressured on European policy not just one political rival, but potentially another, which is focusing on its stronghold regions in upcoming council elections.

The Premier's recent words are borne of a combination of business needs, domestic pressures and geopolitics as the UK starts a year that will commemorate the 10th anniversary of the decision to leave the European Union.