Foreign Secretary Boris Johnson slams CBI over ‘nonsense’ demand we stay in EU customs union post-Brexit
The Foreign Secretary said that kind of position would essentially keep Britain in the EU
BORIS JOHNSON accused the CBI business group of speaking “nonsense” after it demanded Britain stay in a customs union with the EU post-Brexit.
The Foreign Secretary and Brexit champion said such a position would “effectively” mean Britain staying in the EU and stop the PM from signing new free trade deals with the US and the rest of the world.
“It makes no sense,” he stormed. “The PM was clear in her Florence speech - we are leaving.
“Brexit means taking controls of laws, borders, money and trade.
“I’m confident British business can profit from the new opportunities.”
The CBI had earlier sparked a political row by unveiling its new demand 24 hours ahead of a keynote speech by Carolyn Fairbairn, its widely-respected director general.
Previously, the business group has only demanded Britain stay in a customs union during a ‘transitional phase’ after 2019.
Being in the customs union means that once goods have cleared customs in one country – they can be shipped to others in the union without further tariffs being imposed.
It also slashes paperwork and border checks required – but cripple Britain’s ability to strike trade deals with non-EU states.
Explaining the CBI’s new demand, Ms Fairbairn said her members valued the certainty of free trade in Europe above and beyond possible future trade deals elsewhere.
And he urged the PM to move from on “ideology” and make urgent decisions about Britain’s future relationship with the EU.
“There may come a day when the opportunity to fully set independent trade policies outweighs the value of a customs union with the EU. But that day hasn’t yet arrived.”
But critics pointed out the CBI itself had warned in 2015 against leaving the EU but staying in the customs union.
Speaking before the Referendum, the organisation warned it would reduce Britain to the role of “silent partner” with no power in the EU – and unable to strike new trade deals with the rest of world given the restrictions imposed.
Change Britain’s Gisela Stuart said: “The UK can become a beacon of global free trade by taking back control of our trade policy.
“Instead of pandering to the wishes of the big business lobby, we should grasp this opportunity with both hands.”
Treasury Secretary Liz Truss said the Government was also had to weigh up the interests of other businesses who may not be represented by the CBI.
She told ITV’s Peston on Sunday: “It’s very important that we also listen to those who want to enter the market, the new businesses starting up, the exciting new disruptors who might have different ideas about the way of doing things.”
She added: “The whole point about the customs union is if we remained in the customs union, we can’t run an independent trade policy, we can’t get the best possible deal on a trade deal with America or the Far East where a lot of those new opportunities are emerging from.”