Ministers need to face down the rebels in Parliament and tell Brussels we do not seek a customs union
WILL Brexit, as the Prime Minister’s phrase goes, really mean Brexit? We will soon find out, because we are reaching a crucial moment as Britain prepares to leave the European Union.
Behind closed doors in government and Parliament, two fierce battles are raging, and both are about Britain’s future trading relationships with the EU and the rest of the world.
The first is about the decision ministers must make on the future customs relationship we establish with Europe after Brexit. The second is an attempt by MPs and peers — regardless of what ministers decide — to impose on the Government the very solution Theresa May has already rejected: they want Britain to form a customs union with the European Union.
At first, this might sound appealing. It would mean no tariffs on goods traded between Britain and the EU, no routine customs checks at the border, and less hassle for firms doing business in Europe. But there are significant downsides. We would stay tied to the EU, because a customs union would mean having to sign up to European rules and regulations, over which we would have no say.
And we would be unable to sign our own trade agreements with other countries, so we would not make the most of one of Brexit’s key advantages.But a customs union with the EU — when we are no longer members of the EU — brings an even bigger problem.It would allow the European Commission, in its own negotiations, to give away trading access to Britain without getting the same access to other countries for our firms.
This is what they do to Turkey, which is the only big country to agree even a partial customs union with Europe. The Turks are not allowed to negotiate trade agreements with other countries unless the EU has reached its own deal first.
If we are still in a customs union, however, and unable to adopt an independent trade policy, many will conclude that we have not truly left the EU. And that will have enormous political consequences.
So rebel Conservative MPs need to be careful what they wish for. A partial Brexit would almost certainly see the next election fought on a need to “finish the job”. It would see the future of the Conservative Party dominated by Britain’s relationship with the EU. And it would surely mean Theresa May’s successor will be an advocate of a clean break.
That is surely not what Remainers want. For Britain to make the most of Brexit, for our new relationship with Europe to be sustainable, and for the Tories to focus on vital economic and social reforms, Brexit really must mean Brexit — ministers and MPs must reject the customs union.