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Ruling out a customs union is 'profound mistake', says Benn Ruling out a customs union is 'profound mistake', says Benn
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Chair of Brexit committee says time is running out for ministers to decide on their final goalsChair of Brexit committee says time is running out for ministers to decide on their final goals
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Rajeev SyalRajeev Syal
Mon 5 Feb 2018 09.20 GMTMon 5 Feb 2018 09.20 GMT
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Ruling out any continued customs union with the EU is “a profound mistake”, the Labour chair of the Brexit committee, Hilary Benn, has said, warning that it could both harm the economy and risk conflict in Northern Ireland.Ruling out any continued customs union with the EU is “a profound mistake”, the Labour chair of the Brexit committee, Hilary Benn, has said, warning that it could both harm the economy and risk conflict in Northern Ireland.
Speaking after Downing Street said the UK would not be involved in either the current customs union or a new union to replace it, at the start of a crucial week of Brexit discussions, Benn said time was running out for ministers to decide on their final goals.Speaking after Downing Street said the UK would not be involved in either the current customs union or a new union to replace it, at the start of a crucial week of Brexit discussions, Benn said time was running out for ministers to decide on their final goals.
“I wish [Downing Street’s statement] was clarity but I don’t think it is,” Benn told BBC Radio 4’s Today programme. “I think the government is in a state of open disagreement. The prime minister has been immobilised. We’re 19 months since the referendum … and we still don’t know what it is we want.”“I wish [Downing Street’s statement] was clarity but I don’t think it is,” Benn told BBC Radio 4’s Today programme. “I think the government is in a state of open disagreement. The prime minister has been immobilised. We’re 19 months since the referendum … and we still don’t know what it is we want.”
The EU’s chief negotiator, Michel Barnier, was due to meet Theresa May and the Brexit secretary, David Davis, in Downing Street on Monday. Key cabinet colleagues will meet on Wednesday and Thursday to decide the details of the government’s policy regarding a customs union.The EU’s chief negotiator, Michel Barnier, was due to meet Theresa May and the Brexit secretary, David Davis, in Downing Street on Monday. Key cabinet colleagues will meet on Wednesday and Thursday to decide the details of the government’s policy regarding a customs union.
A Downing Street source said on Sunday: “It is not our policy to be in the customs union. It is not our policy to be in a customs union.” The statement went further than May, who, on Friday, refused to rule out involvement in a customs union when questioned during her visit to China.A Downing Street source said on Sunday: “It is not our policy to be in the customs union. It is not our policy to be in a customs union.” The statement went further than May, who, on Friday, refused to rule out involvement in a customs union when questioned during her visit to China.
The UK could sign up to all the EU’s rules and regulations, staying in the single market – which provides free movement of goods, services and people – and the customs union, in which EU members agree tariffs on external states. Freedom of movement would continue and the UK would keep paying into the Brussels pot. We would continue to have unfettered access to EU trade, but the pledge to “take back control” of laws, borders and money would not have been fulfilled. This is an unlikely outcome and one that may be possible only by reversing the Brexit decision, after a second referendum or election. This is the EU current system of which the UK is a part – it groups all the EU members, as well as Monaco. The EU defines it as “a single trading area where all goods circulate freely, whether made in the EU or imported from outside”. 
Britain could follow Norway, which is in the single market, is subject to freedom of movement rules and pays a fee to Brussels – but is outside the customs union. That combination would tie Britain to EU regulations but allow it to sign trade deals of its own. A “Norway-minus” deal is more likely. That would see the UK leave the single market and customs union and end free movement of people. But Britain would align its rules and regulations with Brussels, hoping this would allow a greater degree of market access. The UK would still be subject to EU rules. This means that if goods enter the EU from another country, duty or checks only happen when they first come into the bloc. 
A comprehensive trade deal like the one handed to Canada would help British traders, as it would lower or eliminate tariffs. But there would be little on offer for the UK services industry. It is a bad outcome for financial services. Such a deal would leave Britain free to diverge from EU rules and regulations but that in turn would lead to border checks and the rise of other “non-tariff barriers” to trade. It would leave Britain free to forge new trade deals with other nations. Many in Brussels see this as a likely outcome, based on Theresa May’s direction so far. Some Labour and Tory MPs, and the Liberal Democrats, want the UK to stay in this after Brexit.
Britain leaves with no trade deal, meaning that all trade is governed by World Trade Organization rules. Tariffs would be high, queues at the border long and the Irish border issue severe. In the short term, British aircraft might be unable to fly to some European destinations. The UK would quickly need to establish bilateral agreements to deal with the consequences, but the country would be free to take whatever future direction it wishes. It may need to deregulate to attract international business – a very different future and a lot of disruption. As raised by Labour, but now ruled out by Downing Street, this would see the UK sign its own customs deal with the EU after leaving, allowing for some differences. The EU already has three separate bilateral customs union arrangements in place, with Turkey, Andorra and San Marino.
This idea, mentioned by Downing Street when it ruled out membership of any future customs union, remains vague, but is taken to mean a looser deal which would allow the UK to make its own separate trade deals with non-EU nations, something seen as crucial to many Brexiters.
But it could end up being a change largely of terminology. Craig Oliver, the former No 10 communications head, tweeted that he wondered if it was a political trick, to “name something differently and say it’s not the same.”
The source said a customs union was entirely different from a customs arrangement, which would allow the government to strike trade deals with countries outside the EU. The source also claimed that there had been no change in policy, saying the statement was a reiteration of policy outlined in a paper published in August.The source said a customs union was entirely different from a customs arrangement, which would allow the government to strike trade deals with countries outside the EU. The source also claimed that there had been no change in policy, saying the statement was a reiteration of policy outlined in a paper published in August.
Benn, who chairs the Exiting the EU committee in the House of Commons, said it was “a very serious moment for our country”.Benn, who chairs the Exiting the EU committee in the House of Commons, said it was “a very serious moment for our country”.
He said: “I think it’s a profound mistake to leave a customs union with the European Union.” Doing so would necessarily involve a return to some sort of checks on the border between Northern Ireland and Ireland, which could jeopardise the peace process, he warned.He said: “I think it’s a profound mistake to leave a customs union with the European Union.” Doing so would necessarily involve a return to some sort of checks on the border between Northern Ireland and Ireland, which could jeopardise the peace process, he warned.
More widely, Benn said there was “disfunction at the heart of government”, which meant big decisions were not being taken, causing massive uncertainty for businesses.More widely, Benn said there was “disfunction at the heart of government”, which meant big decisions were not being taken, causing massive uncertainty for businesses.
Part of the problem, he argued, was the rigid timetable imposed by May and her team. He said: “If you set red lines and fixed dates and you impose rigidity on a process that is incredibly complex, you end up in trouble.Part of the problem, he argued, was the rigid timetable imposed by May and her team. He said: “If you set red lines and fixed dates and you impose rigidity on a process that is incredibly complex, you end up in trouble.
“And what the government is now coming face to face with is the consequences of red lines it set, including saying leaving the customs union is what they want to do.”“And what the government is now coming face to face with is the consequences of red lines it set, including saying leaving the customs union is what they want to do.”
The attempt at Downing Street to give some clarity over the customs union followed a weekend of press coverage about supposed Brexit splits in government, including speculation that Boris Johnson and Michael Gove could try to take power.The attempt at Downing Street to give some clarity over the customs union followed a weekend of press coverage about supposed Brexit splits in government, including speculation that Boris Johnson and Michael Gove could try to take power.
Speaking on ITV’s Good Morning Britain, Priti Patel, the former international development secretary who supports a hard Brexit, said talk of a challenge to May should end immediately.Speaking on ITV’s Good Morning Britain, Priti Patel, the former international development secretary who supports a hard Brexit, said talk of a challenge to May should end immediately.
“She is our prime minister and that’s not going to change, full stop,” she said.“She is our prime minister and that’s not going to change, full stop,” she said.
Patel welcomed the comments on the customs union: “That is the discussion that is taking place this week at cabinet. The reality is, having alignment with the European Union on a customs arrangement is so far away from what the British public voted for, that that is what has to be delivered.”Patel welcomed the comments on the customs union: “That is the discussion that is taking place this week at cabinet. The reality is, having alignment with the European Union on a customs arrangement is so far away from what the British public voted for, that that is what has to be delivered.”
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Article 50Article 50
European UnionEuropean Union
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Hilary BennHilary Benn
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