The Prime Minister has always ruled out a full customs union with Brussels as it would prevent the UK from fully being able to strike its own trade deals with other countries. But in talks with the opposition, Labour has insisted on a customs union, and recently Theresa May has started to lower her guard on this matter, hinting the two parties might be able to find a compromise. Standing in for her during Prime Minister’s Questions in the House of Commons earlier today, de facto deputy David Lidington hinted at further movement on the issue.
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The Prime Minister has always ruled out a full customs union with Brussels as it would prevent the UK from fully being able to strike its own trade deals with other countries.
But in talks with the opposition, Labour has insisted on a customs union, and recently Mrs May has started to lower her guard on this matter, hinting the two parties might be able to find a compromise.
Standing in for her during Prime Minister’s Questions in the House of Commons earlier today, de facto deputy David Lidington hinted at further movement on the issue.
He told Parliament: “I hope it will be possible to bring members from all sides of the house together in support of a customs arrangement as part of a wider approach to our future relationship with the European Union.”
Mr Lidington said cross-party talks aimed at finding a compromise have been constructive, but warned it is also “very difficult”.
Labour’s Shadow Foreign Secretary Emily Thonberry raised concerns over the Government’s attempts to maintain an open border on the island of Ireland, and insisted the option of a customs union must be put on the table to deal with it.
She told MPs: “If the Government is serious about putting the country first, the whole of our country, will the minister for the Cabinet Office accept that means finally getting serious about the cross-party negotiations and putting the option of a customs union on the table?”
Mr Lidngton replied: “The substance and the tone of those conversations between the Government team and the Opposition team have been constructive.
“I think there is a genuine attempt to try to find a way through but I’m not going to hide the fact that this is very difficult, because if it’s going to work it’ll mean both parties needing to make compromises and us ending up with a solution that unlike any other so far proposed will get a majority in the House.”
The Cabinet Office minister listed the proposals rejected by MPs over the past two months during indicative voting, before adding: “It’s not just a matter for the Government or Opposition front benches.
“It’s a matter for every member of this House to take our responsibilities to the country seriously and find a way to agree on an outcome that enables us to deliver on the referendum result and to take this country forward.”
But the US Ambassador to the UK has warned negotiating a trade deal after Brexit would be “much more difficult” if Britain is in a customs union with the EU.
Woody Johnson said it would be “more challenging” for the UK “to get control of its own trade policy”, but added President Donald Trump is still hopeful of doing a “robust, big, very generous trade deal”.
He told the BBC: “It is going to be more challenging to get control of your own trade policy if you are still in the European Union as you are now.
“It is going to be much more difficult, not just with the United States, but with other countries around the world.”
Mrs May first hinted at a customs union compromise with Labour earlier this month after she secured a delay from the EU for Britain’s departure from the bloc until October 31.
She told the Commons: “There is actually more agreement in relation to a customs union than it is often given credit for when different language is used.
“We want to obtain the benefits of a customs union – no tariffs, no rules of origin checks and no quotas – while being able to operate our own independent trade policy.”
