Politics

Brexit: Tory outrage explodes over customs union as Liam Fox letter exposed


Tory outrage exploded today over a Brexit customs union as it emerged Liam Fox savaged the idea in a private letter.

The International Trade Secretary branded a customs union the “worst of both worlds” that would leave Britain eaten up by the EU in an excoriating message to Tory MPs.

His missive emerged as Theresa May was inching closer to backing a customs union – which is a form of softer Brexit – in crisis talks with Labour .

Jeremy Corbyn’s allies are holding lunch and talks with a string of Tory ministers this afternoon in a bid to find a consensus across the Commons.

Today EU chief Michel Barnier – who will join 27 EU leaders at a Brexit summit tomorrow – suggested a customs union plan could be drawn up within a “hours or days”.

 

Today EU chief Michel Barnier – who will join 27 EU leaders at a Brexit summit tomorrow – suggested a customs union plan could be drawn up within a “hours or days”

 

And Theresa May and her allies have repeatedly hinted that some form of customs union is on the table.

Yet Mr Fox’s letter, leaked to the Daily Telegraph, showed Cabinet splits over the issue have burst out into the open.

The Cabinet minister wrote a four-page letter to the 1922 committee of backbench Tory MPs, explaining why the plan would not be good for Britain.

He said Britain would have “no say” in EU trade policy while the EU could take action “prejudicial to our interests” by forcing the UK to stick to tariffs on developing countries.

He wrote: “We would be stuck in the worst of both worlds, not only unable to set our own international trade policy, but subject, without representation, to the policy of an entity over which MPs would have no democratic control.”

He added: “In such a scenario the UK would have a new role in the global trading system – we ourselves would be traded.

“As the famous saying in Brussels goes, if you are not at the table, you are on the menu.”

“As the famous saying in Brussels goes, if you are not at the table, you are on the menu” said Liam Fox

The contents of the letter suggest Mr Fox may quit the Cabinet if Theresa May pursues such a policy with Labour.

A customs union means we follow EU customs rules.

This would mean keeping zero tariffs on imports from the EU – and the other way round on our exports.

It would also absolve the UK of decisions on whether to hike tariffs and checks on goods from around the world.

And it would prevent a hard border in Ireland.

But while this would cut out a lot of paperwork, Theresa May says it would block us from signing trade deals with other countries around the world – and breach the Tories’ 2017 manifesto.

EU chief negotiator Michel Barnier today said a customs union could be agreed “rapidly” by bolting it onto the Brexit deal in a political declaration.

He spoke as Theresa May flew to Berlin and Paris ahead of a meeting of 27 EU leaders tomorrow night.

Mr Barnier said: “Ambitions for the future relationship could – for example – consist of adding to the free trade agreement on which we have agreed with the UK already a customs union, a genuine customs union.

“We are willing to improve and amend the Political Declaration rapidly, within a few hours or days.”

Theresa May has been meeting Angela Merkel in Berlin today to beg for a delay

Mrs May is holding talks with Labour at the same time as begging EU leaders for a delay to Brexit.

The PM wants a short extension of June 30 at the latest, but EU leaders are likely to demand a much longer delay.

Labour MP Jo Stevens, who backs a second Brexit referendum, said the Cabinet splits showed any customs union plan must be subject to full scrutiny.

She added: “There must be no Westminster stitch-up on a decision so important to the country’s future.”

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