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The Premier's particularly significant shift on the United Kingdom's following Brexit connections to the bloc on Saturday was designed to communicate to business, to EU officials, and to other European capitals, in addition to his party members.

A Revised Approach for Engagement

Closer following Brexit trade links are now expected to be looked at as part of an annual process of direct negotiations as opposed to exclusively at the current year's official assessment of the UK-EU deal.

This served as the clear response to parliamentary pressure regarding a wider-ranging renegotiation of relations that entailed re-entering the EU customs bloc.

Internal Calls

A number of parliamentarians, union leaders and senior ministers have lent support to proposals crystallised by parliamentary moves last year that resulted in a symbolic resolution.

"It is better focusing on the EU's internal market instead of the customs union for our closer integration," the Prime Minister said.

He gave a clear answer that rejoining the customs union was a lower priority, as it conflicts with what he regards as a major accomplishment of the past year: the signing of best-in-class deals with the America and the Indian subcontinent, with further expected in the Gulf region.

Emphasising the Internal Market

Rather than the common external tariff, his focus is on building a "stronger bond" with the single market, which would avoid tearing up those new trade deals globally.

When the UK officially exited the EU in the start of 2021, the agreement at the time emphasised liberation from EU rules rather than barrier-free exports for British firms to the continent.

The ongoing new approach envisages realigning with EU standards in several sectors to promote the free flow of trade: food and farm exports, power, and emissions trading.

Industry Demands

A prominent industry organisation last month published a list of additional asks in different fields to assist exporters overcome administrative barriers that has hit the goods trade.

Its member poll reported that a significant number of member firms felt that the existing agreement was not helping sales growth.

A host of further domains could, feasibly, see a comparable strategy – harmonisation with single market rules – in return for minimising post-Brexit barriers across manufacturing, in automotive, pharmaceuticals, or for example in VAT procedures.

EU Response

EU governments were underwhelmed by the modest aims in last year's reset, notably the London's refusal of ideas put forward by some commentators regarding the simplified access of UK products to the single market.

The precise arrangements on electricity and agricultural regulations is yet to be finalised. A proposal for UK defence firms to be part of a €150bn security initiative has been delayed over the size of the contribution, after some objections from Paris. Canada has signed up to the scheme.

Geopolitical Environment

The UK has reached an agreement to return to a academic exchange programme and to discuss a youth jobs scheme. This has helped clear the way for further UK-EU talks.

Some UK insiders say that the recent publication of a key US strategy document has altered the context on UK European policy.

The strategy noted that the US would "encourage pushback" to continental trends and commended the "increasing clout" of patriotic European parties.

Within the administration, there is some recognition that the global landscape has evolved further.

Home Pressures

Domestically, the administration also foresees being pressured on Brexit by one opposition party, but additionally a further party, which is focusing on its stronghold regions in local votes.

The Prime Minister's latest comments are the product of a combination of economics, domestic pressures and geopolitics as the UK starts a year that will commemorate the 10th anniversary of the historic Brexit referendum.