EU youth mobility scheme could save Britain from harm of Trump tariffs, Sadiq Khan says

Sadiq Khan has urged the government to agree a youth mobility scheme with the European Union, saying it could save Britain from the “economic storm” of Donald Trump’s sweeping global tariffs.

Writing in The Independent, the London Mayor said such an agreement - which would allow 18- to 35-year-olds to move and work freely between countries for up to two years - is “long overdue and now needs to be considered” in order to boost growth across Britain and Europe in the face of the trade taxes.

In light of Mr Trump’s tariffs, Sir Sadiq argued such a scheme is now “an economic priority, rather than a political talking point”.

“Europe is by far our biggest trading partner and our most reliable political ally. At a time when our communities can ill-afford to absorb another economic shock that pushes up prices, it makes sense for us to deepen our partnership”, he added.

EU officials see such a youth mobility scheme as a key aspect of closer ties with Britain, but so far, the UK government has publicly opposed it, becoming a major sticking point between the UK and EU.

Britain already has similar agreements with Australia and 12 other countries, including New Zealand, South Korea, Iceland, Uruguay, Hong Kong and Taiwan.

Urging ministers to adopt an EU scheme, Sir Sadiq said: “A new youth mobility scheme would allow our city – and country – to benefit from the talent, energy and skills of young EU citizens. They can help ensure we have the world’s best hospitality sector, give our construction sector a shot in the arm, and bring new ideas, creativity and innovation across our economy”, he said.

“If others want to rush to put up trade barriers, London will always be in favour of tearing them down and strengthening our connections with the EU and the rest of the world in a mutually beneficial fashion.”

Sir Sadiq’s warnings come just days after The Independent revealed that a youth mobility scheme with the EU is on the table but under a different name.

It is understood the proposal – pitched as a “youth opportunity scheme” - would operate similarly to proposals for a “youth mobility scheme”, with the new name being proposed by MPs as part of an attempt to secure government backing for the agreement.

Prompting Labour to endorse such a move, Sir Sadiq said: “In the last few weeks, an economic storm has been unleashed that poses a profound threat to global trade. We have witnessed the imposition of tariffs at previously unheard-of levels and seen financial markets in turmoil.

“Coming so soon after the battering of the pandemic – and at a time when the world economy remains fragile – the fallout will inevitably impact global cities like London and the whole of the UK.”

It comes after Mr Trump imposed sweeping tariffs on imports to the United States earlier this month, rocking the world economy, sending stock prices tumbling and sparking fears of a global recession.

While Sir Sadiq acknowledged that the prime minister has "already demonstrated a readiness to intervene to shelter vital British industries and jobs from the storm”, the London Mayor warned that the “current crisis means we must also look at further measures”.

A government spokesperson said: "We do not have plans for a youth mobility agreement.

“We are committed to resetting the relationship with the EU to improve the British people’s security, safety and prosperity.

“Our starting point will always be to act in Britain’s national interest, but we have been clear there will be no return to freedom of movement, the customs union or the single market.”