Displaying items by tag: customs union

Liberal Democrat leader Sir Ed Davey has called on the UK to negotiate a new customs union with the EU by 2030, arguing it is the 'single biggest thing' the country can do to strengthen its economy. In his first major speech of the year, he urged the Government to replace the Conservative-brokered Brexit deal with one allowing freer movement of goods between Britain and the EU. He claims this approach would enable the UK to negotiate with a second Trump administration from a position of strength, reducing reliance on the US. He criticised Kemi Badenoch and Nigel Farage for prioritising US interests over Britain’s. Keir Starmer has pledged to deepen ties with the EU but has ruled out rejoining the customs union. The Government rejected Davey’s proposal, emphasising its commitment to avoid reopening Brexit divisions. Davey maintains that rebuilding ties with Europe is crucial for economic stability and security.

A crisis Cabinet meeting failed to back Theresa May's plan for a ‘customs partnership’ with Brussels. Key Brexit sub-committee members tried to thrash out a model for the UK's future trade links with Brussels in two hours of tense discussions that ended in deadlock. Insiders said that Sajid Javid had been instrumental in rejecting her plan. Mrs May ordered ministers and officials to carry out ‘further work’ on two options and return with revised proposals at a later date. Whitehall sources reported that six ministers oppose her option and want a looser customs arrangement with Brussels. Boris Johnson urged Mrs May to stick to the principles of her keynote speech at the Mansion House earlier this year which clearly stated that Britain would not form any customs union with the EU after Brexit. International trade secretary Liam Fox said the customs partnership was ‘not compatible’ with Brexit.