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Jeremy Corbyn: both of May's customs union plans are implausible Jeremy Corbyn says Tory divisions over Brexit are a shambles
(about 7 hours later)
Jeremy Corbyn has torn into Theresa May’s stalling on the EU customs union, suggesting during prime minister’s questions that cabinet ministers were deliberately undermining her preferred option. Jeremy Corbyn sought to exploit Tory divisions over Brexit in the House of Commons on Wednesday, as he accused Theresa May of presiding over a shambles.
Corbyn said both of May’s options for a future customs arrangement with the EU were implausible, citing Boris Johnson’s Daily Mail interview where he called the partnership model “crazy”. At prime minister’s questions, the Labour leader said the prime minister had had “23 months to negotiate an agreement” with her cabinet, but was yet to agree what customs arrangement she wants to strike with the EU27 after Brexit. “These negotiations are in a shambles,” he added.
He also quoted the former UK representative in Brussels Sir Ivan Rogers on the alternative model preferred by Brexiters for a technological solution for customs checks on the Northern Irish border, saying it was a “fantasy island unicorn model”. Cabinet divisions over Brexit have burst into the open in the past week, with Boris Johnson launching an unprecedented attack on May’s preferred solution of a customs partnership, under which the UK would collect EU import tariffs on behalf of Brussels.
He told the Daily Mail: “That’s not taking back control of your trade policy, it’s not taking back control of your laws, it’s not taking back control of your borders and it’s actually not taking back control of your money either, because tariffs would get paid centrally back to Brussels.”
The interview followed a staunch defence of the customs partnership by the business secretary, Greg Clark, as well as leading business groups on Sunday, in what was regarded by Brexiters as a coordinated intervention.
Brexiters believe there is a majority in May’s Brexit inner cabinet against the proposal, which they describe as a “dead parrot”.
They prefer the alternative maximum facilitation, or “max-fac” approach, which would use technology to minimise border checks.
Corbyn pointed out that this plan had been criticised by the former UK representative in Brussels, Sir Ivan Rogers, who described it as a “fantasy island unicorn model”.
A customs union is an agreement by a group of countries, such as the EU, to all apply the same tariffs on imported goods from the rest of the world and, typically, eliminate them entirely for trade within the group. By doing this, they can help avoid the need for costly and time-consuming customs checks during trade between members of the union. Asian shipping containers arriving at Felixstowe or Rotterdam, for example, need only pass through customs once before their contents head to markets all over Europe. Lorries passing between Dover and Calais avoid delay entirely.A customs union is an agreement by a group of countries, such as the EU, to all apply the same tariffs on imported goods from the rest of the world and, typically, eliminate them entirely for trade within the group. By doing this, they can help avoid the need for costly and time-consuming customs checks during trade between members of the union. Asian shipping containers arriving at Felixstowe or Rotterdam, for example, need only pass through customs once before their contents head to markets all over Europe. Lorries passing between Dover and Calais avoid delay entirely.
Customs are not the only checks that count – imports are also scrutinised for conformity with trading standards regulations, security and immigration purposes – but they do play an important role in determining how much friction there is at the border. A strict customs regime at Dover or between Northern Ireland and the Republic of Ireland would lead to delays which will be costly for business and disruptive for travellers. Just-in-time supply chains in industries such as carmaking could suffer. An Irish peace process built around the principle of entirely unfettered travel between north and south could be jeopardised.Customs are not the only checks that count – imports are also scrutinised for conformity with trading standards regulations, security and immigration purposes – but they do play an important role in determining how much friction there is at the border. A strict customs regime at Dover or between Northern Ireland and the Republic of Ireland would lead to delays which will be costly for business and disruptive for travellers. Just-in-time supply chains in industries such as carmaking could suffer. An Irish peace process built around the principle of entirely unfettered travel between north and south could be jeopardised.
“They have two options, neither of which are workable,” Corbyn said. The government, he said, had “wasted weeks working up proposals that the EU said was unworkable, that her own own foreign secretary described as crazy”. “They have two options, neither of which are workable,” Corbyn said. The government, he said, had “wasted weeks working up proposals that the EU said was unworkable, that her own foreign secretary described as crazy”.
Corbyn said the prime minister had had “23 months to negotiate an agreement” with her cabinet but no progress had been made. “These negotiations are in a shambles. This house is being denied the opportunity to debate crucial legislation affecting the future of our economy and communities all over Britain. May conceded: “There were two options in my Mansion House speech. Questions have been raised about both of them and further work continues.”
“When will we debate the trade bill and the customs bill? She’s had 23 months to get ready for it.” She said there would be a deal where the UK would “leave the customs union, we have an independent free-trade policy, we maintain no hard border in Northern Ireland and we have as frictionless trade as possible”.
May said work was continuing on the future customs deal with the European Union. On Tuesday, Johnson launched an unprecedented attack on the customs partnership option, said to be May’s preferred solution, under which the UK would collect EU import tariffs on behalf of Brussels. Backers of the customs partnership believe it is the only option capable of solving the challenge of preventing new border checks being introduced in Ireland.
May said there would be a deal where the UK would “leave the customs union, we have an independent free trade policy, we maintain no hard border in Northern Ireland and we have as frictionless trade as possible”. Brussels had previously rejected the idea, but officials from the Department for Exiting the EU are continuing to look at the issue. The Irish taoiseach, Leo Varadkar, held out a glimmer of hope on Tuesday, saying May’s approach was a “welcome suggestion”.
May described Labour’s policy of forging a new customs union with the European Union as crazy. “What’s crazy is a leader of the opposition who for years opposed [US trade deal] TTIP and now favours a policy which would mean Labour signing up to TTIP with no say in it whatsoever,” she said. “The view of the EU is that it isn’t workable in its current form but it is something that perhaps we could make workable,” he said.
“There were two options in my Mansion House speech. Questions have been raised about both of those options and further work continues. He has spent an entire career opposing a customs union. Now, when the British people want to come out, he wants to stay in. I know he’s leader of the opposition but that goes a bit far.” Labour is also divided over Brexit, with 83 of the party’s peers defying the leadership on Tuesday night to back a House of Lords amendment to the EU withdrawal bill aimed at keeping Britain in the single market.
Corbyn said the case for a new customs union was backed by both the CBI and TUC, businesses and trade unions. May, he said, should stand up to hard Brexiters on her backbenches, quoting Conservative MP Ken Clarke who called them “wild rightwing people”. The government is expected to bring the key piece of Brexit legislation back to the Commons in the next fortnight, and seek MPs’ backing to remove 14 amendments made by peers, on issues including the Brexit date and a future customs union.
“Labour want to go into a customs union ... with Brussels negotiating trade deals in their interests, not our own. Typical Labour, letting Britain down once again,” May said. Labour whipped its peers to abstain on Tuesday’s amendment, which was tabled by Lord Alli and proposed pursuing membership of the European Economic Area. Pro-single market MPs hope it will put pressure on the leadership to shift its position.
Corbyn’s spokesman suggested after PMQs that the party would continue to seek “a new relationship with the single market”; but he stressed that EEA membership “includes a number of different relationships”.
He added that Labour objected to key aspects of the single market, including state aid and competition rules, and would seek “exemptions, clarifications or a negotiated change” to ensure Labour could carry out its manifesto pledges of increasing state involvement in the economy.
May said Corbyn’s approach was contradictory, because signing up to a customs union, as Labour proposes, would force Britain into trade deals it had played no part in negotiating.
“He has spent an entire career opposing a customs union. Now, when the British people want to come out, he wants to stay in. I know he’s leader of the opposition but that goes a bit far,” she said.
Labour insists it would only sign up to a customs union if it were given some say over future deals.
Trade policyTrade policy
BrexitBrexit
PMQsPMQs
House of CommonsHouse of Commons
Foreign policyForeign policy
Jeremy Corbyn
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