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The Premier's very notable shift on the Britain's following Brexit ties to the European Union this weekend was designed to communicate to the business community, to European institutions, and to European partners, alongside his political supporters.

An Altered Approach for Relations

Closer post-Brexit economic relations are now expected to be looked at as part of an annual process of direct negotiations as opposed to exclusively at this year's structured evaluation of the UK-EU deal.

This represented the stated position to growing calls regarding a broader Brexit reset that involved returning to the common tariff area.

Parliamentary Pressure

Several MPs, union leaders and cabinet ministers have added their voices to proposals formalised by parliamentary moves last year that culminated in a non-binding vote.

"We are better looking to the single market instead of the customs union for our closer integration," the Prime Minister stated.

He gave a clear answer that rejoining the customs union was not the priority, as it conflicts with what he views as a major accomplishment of the previous year: the signing of best-in-class deals with the US and India, with more to come in the Middle East.

Focusing On the Internal Market

Instead of the common external tariff, his emphasis is on forging a "closer relationship" with the EU's single market, which would not mean tearing up those new trade deals elsewhere.

When the UK officially exited the EU in early 2021, the prevailing deal prioritised liberation from EU standards over frictionless trade for British firms across Europe.

The present new approach proposes synchronising with EU regulations in several sectors to help the free flow of trade: agri-food goods, power, and emissions trading.

Industry Requests

A prominent industry organisation last month issued a detailed set of new proposals in various industries to assist exporters deal with post-Brexit red tape that has hit the export of products.

Its member poll found that a majority of business members felt that the existing agreement was impeding business expansion.

A host of further domains could, potentially, see a parallel method – harmonisation with single market rules – in return for lowering post-Brexit barriers across manufacturing, in automotive, industrial chemicals, or for example in arrangements for VAT.

EU Perception

European capitals were unimpressed by the limited scope in the previous recalibration, specifically the UK dismissal of ideas floated by some commentators regarding the virtual readmission of UK products to the single market.

The exact terms on electricity and agri-food rules is yet to be agreed. A plan for UK defence firms to be involved in a major defence loan fund has hit a snag over the cost of the membership fee, after reservations from the French government. Canada has signed up to the initiative.

Wider Environment

The UK has reached an agreement to participate once more in a student mobility programme and to further negotiate a youth jobs scheme. This has facilitated progress for ongoing dialogue.

Some UK insiders say that the release last month of a American national security strategy has also changed the environment on UK ties to the EU.

The strategy said that the US would "encourage pushback" to Europe's current trajectory and commended the "growing influence" of nationalist groups.

In government circles, there is an acknowledgement that the international situation has changed again.

Political Pressures

Domestically, the governing party also anticipates being outflanked on EU relations not only one opposition party, but additionally others, which is focusing on its traditional heartlands in upcoming council elections.

The Leader's recent words are stem from a intersection of business needs, domestic pressures and geopolitics as the UK embarks upon a year that will commemorate the ten-year mark of the historic Brexit referendum.