Rachel Reeves said that the UK's trade relationship with the EU is "arguably even more important" than with the US
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A heated exchange erupted on GB News between host Nana Akua and former LabourList editor Peter Edwards after the host branded Chancellor Rachel Reeves' comments about trade "insulting."
The row centred on Reeves' assertion that the UK's trade relationship with the EU is "arguably even more important" than with the US.
The Chancellor made these remarks whilst in Washington for trade talks, sparking criticism from both the Conservative opposition and No10, which refused to back her claim.
The timing of her comments has been questioned as potentially damaging to ongoing US trade negotiations.
Nana Akua said that it is "just not wise"
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Akua said: "I think that Rachel Reeves slight faux pas whilst you're in somebody's house, you don't say to that person, I think the neighbour's house is better than yours.
"That's not good. Is it? That's what that would feel like. Do you think she was wise to make the Comments that she made while in America looking for a trade deal?
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The ex-LabourList editor said: "Well, I think if you're in a friend's house, it's always good to speak the truth. And she used the word arguably she caveated her words pretty carefully.
"But Britain's number one trading partner is the EU. And if you think about who she's dealing with, Donald Trump is not exactly averse to giving his version of the truth.
"So I don't see what's wrong with Rachel Reeves stating a fact. European trade is slightly larger than British trade with America. There’s nothing wrong with telling the truth."
She added: "All of it is it’s just all very unsavoury, isn’t it? Let’s be honest, I don't think it was wise.
"It doesn’t matter who I support, I honestly don't support any political party. But from the outside, using common sense, if I'm trying to negotiate a really good trade deal, I wouldn't go and insult the host country involved in that deal. I think it's slightly insulting."
He fumed: "That could come from the OPR, from Chris Hope, or another broadcaster or from the FT. But what’s insulting about stating a fact about trade?"
Downing Street declined to endorse the Chancellor's assessment of EU trade importance over US relations.
The Prime Minister's spokesman acknowledged it was a "statement of fact" that the EU was Britain's largest trading partner.
Rachel Reeves made the comments while she was in the US
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However, he refused to repeat Reeves' claim that this made Brussels "arguably" more important than Washington.
"As the Prime Minister has said, it's a false choice to make between the two. Both are of incredible importance to us, and we treat both with enormous respect," the spokesman said.
The Conservatives were quick to condemn Reeves' remarks, with Shadow Business Secretary Andrew Griffith calling it a "major gaffe".
"Going to Washington to get a trade deal only to say she views the EU as more important is a major gaffe by this foot-in-mouth Chancellor," Griffith told The Telegraph.