Brexit betrayal fears as EU tipped to use steel trade war threat for major concession

Sir Keir Starmer's talks with Brussels over new EU steel tariffs may be used to push Britain into agreeing a more generous youth mobility scheme. European countries are reportedly using the upcoming negotiations as a chance for further concessions on visas for people under 30, which would allow them to move to the UK for a limited period. Last week, it was announced that the European Union could impose tariffs of 50% on UK steel in a major post-Brexit blow.

Gareth Stace, director-general of the lobby group UK Steel, warned the levies could wipe out the country's remaining steel companies. "This is perhaps the biggest crisis the UK steel industry has ever faced," he said. "Government must go all out to leverage our trading relationship with the European Union to secure UK country quotas or potentially face disaster." However, discussions over the levy may be used to put pressure on Britain to agree to a more generous youth mobility deal.

Brussels insiders told The Telegraph that exempting Britain from steel tariffs would offer a "powerful incentive" for Labour to offer further concessions.

A senior EU official said: "Of course, the fact that we invite countries to negotiate with us is a powerful incentive for them to try to find an agreement with us, and we also would like to have an agreement with them."

A youth mobility scheme, which would contribute to the UK's immigration figures, would allow for young people to move to the UK for over a year. The programme would be similar to that of Britain's existing deals with Australia, New Zealand and Japan.

Under these youth schemes, under 30s can move to the UK for up to two years, with some exceptions allowing for that length of stay to be extended. Countries within the EU are now reportedly demanding for a scheme which allows for 18-30-year-olds to move to the UK for more than 12 months, despite home secretary Yvette Cooper pushing for a year cap.

The EU's Brexit negotiator, Maros Sefcovic, said Brussels "will negotiate these quotas" with the UK "in good faith".

Opposing political parties have previously condemned the scheme, labelling it as a "backdoor to free movement of people from the EU".

Reform UK deputy leader Richard Tice said at the time of the announcement: "This is not a government that can be trusted on Brexit. We cannot forget that this cabinet actively opposed Brexit and, in the case of Keir Starmer, actively campaigned to overturn the democratic decision of more than 17 million people," he said.

Conservative leader Kemi Badenoch has also criticised the youth programme for potentially leading to an "uncapped migration scheme".