Jump directly to the content
BREXIT WARNING

Theresa May’s hated customs partnership plan could be illegal, David Davis warns her

Brexit Secretary told the PM her favoured option could fall foul of international trade law as Cabinet moves towards adopting system backed by Boris Johnson instead

THERESA May's hated customs partnership plan could be illegal, David Davis has reportedly warned her.

The Brexit Secretary is said to have told the Prime Minister her favoured option could fall foul of international trade law as the Cabinet moves towards adopting a different system backed by Boris Johnson.

 David Davis has warned Theresa May her hated customs partnership plan could be illegal
3
David Davis has warned Theresa May her hated customs partnership plan could be illegalCredit: Reuters

He reportedly made his fears known in a letter to Mrs May, the details of which emerged as Labour announced plans to try and force the Government to publish secret documents about discussions on a customs plan.

The  wrote that Attorney General Jeremy Wright has been asked to provide an urgent legal opinion, prompting further speculation the “New Customs Partnership” will be dropped altogether.

It says Mr Davis has the backing of other Brexit-supporting cabinet ministers, who are worried that if significant legal obstacles emerged it would be too late to turn back and choose another option.

That could mean the UK would have to stay in the EU’s customs union, and the UK would not be able to strike trade deals of their own.

 The Prime Minister's favoured option could fall foul of international trade law
3
The Prime Minister's favoured option could fall foul of international trade lawCredit: EPA

The legal advice will be provided directly to Mrs May, with Mr Wright also set to also consider the legality of the maximum facilitation model – known as “max fac” – supported by Mr Davis.

There are also fears this option’s legality could be challenged at the World Trade Organisation, and critics have said to could breach the Good Friday Agreement in Northern Ireland.

A senior government source said: “There are potential legal problems with both plans as they stand.

“The attorney-general has been asked to provide an assessment that will then be fed into the cabinet discussions.”

 The Cabinet appears to be moving towards adopting a system backed by Boris Johnson instead
3
The Cabinet appears to be moving towards adopting a system backed by Boris Johnson insteadCredit: EPA

Customs confusion: Options for post-Brexit trade explained

ONE of the key planks of the European Union is the customs union which all member countries - currently including the UK - must belong to.

It means there are no tariffs on goods going between EU states, and they all enforce the same standards for goods imported from outside Europe.

Some pro-EU politicians want Britain to stay in the customs unionafter Brexit - but that has been ruled out by Theresa May, because it would stop us striking any new trade deals with the rest of the world.

Last year, the PM set out two possible paths for the future customs relationship between Britain and Europe.

One option is the "customs partnership" - which would mirror many aspects of the existing customs union.

It would see the UK collect tariffs on behalf of the EU for any goods which enter Britain on their way to the continent.

The advantage of that would be no border checks would be needed between the UK and EU, particularly on the key Irish border, but Brexiteers worry it would tie us too closely to Europe.

The alternative is known as "maximum facilitation" - a hi-tech arrangement where automated systems check goods as they flow across borders in a way which helps business trade freely.

But EU bosses have cast doubt on whether the right technology exists to make that solution work.

While the row may seem technical, many Brexit backers regard it as crucial for the UK to take total control of our trade and customs arrangements, or risk making our EU departure pointless.

Theresa May faces a major challenge finding a solution which is acceptable for both hardline Eurosceptics and the pro-EU Tory rebels.

Cabinet Office minister David Lidington confirmed that assessments are being made on the legal risks of the customs options being considered.

He said: "What any government does is that when we are putting forward internally some ideas about relationships with other countries, new treaties, that we test the legal risks involved."

But the EU’s chief negotiator Michel Barnier is reported to have told a Brussels meeting that it was not worth fighting about the two UK proposals, as neither of them is "realistic".

Yesterday the government said it would publish a white paper outlining its Brexit strategy, which Mr Lidington said would "demonstrate that we have thought this through".

Theresa May’s Brexit customs partnership plan all-but dead after Michael Gove savages it

However Labour said it was launching a new parliamentary bid to force the Government to release details of its proposals for post-Brexit customs arrangements on the Irish border.

Jeremy Corbyn's party has tabled a motion in the Commons for debate on Wednesday designed to break the "deadlock".

It is the latest in a string of motions by the opposition party using an arcane parliamentary procedure to make the vote binding on the Government by issuing a "humble address" to the Queen asking her to require ministers to comply.

Topics