Downing Street forced to deny claims the PM has ruled out a Brexit trade deal with US because it would make it impossible to reach agreement with EU
Furious Brexiteers have hit out at reports Theresa May has abandoned plans for a trade deal with the US once we quit the EU
DOWNING Street was today forced to deny that Theresa May has ruled out the possibility of a post-Brexit trade deal with the US.
Reports claim the PM has told ministers her preferred customs plan with the EU would make it nearly impossible to strike an agreement with America after Brexit.
She allegedly said the only way to keep trade flowing freely with Europe is to adopy EU regulations on all goods - adding that that would stop us accepting good from the US which don't comply with the rules.
Brexit-backing Tories reacted with fury, warning the PM the proposed arrangement "is not Brexit".
But Number 10 rubbished the reports and insisted Mrs May's message to the Cabinet has been misinterpreted.
The PM's spokesman said: "It's categorically not true that we will not be able to strike a trade deal with the US."
But she refused to say whether or not the latest customs plan would make a transatlantic trade harder.
Downing Street sent Brexit briefing papers to senior ministers today ahead of a summit at Chequers tomorrow where they will finally agree the Government's position on customs.
The documents say Britain will make "an upfront choice to commit by treaty to ongoing harmonisation with EU rules on goods", .
They add that staying to European standards "would not allow the UK to accommodate a likely ask from the US in a future trade deal".
That is because US negotiators would probably demand that Britain start allowing imports of American goods which fall foul of EU regulations.
Tory MP Lucy Allan said of the reports: "This is not Brexit." Jacob Rees-Mogg, boss of the powerful European Research Group, added: "This common rulebook means that we are essentially a vassal state."
And Nadine Dorries said: "What’s the point if we can’t free trade with global giants?"
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Ex-minister Owen Paterson accused the PM of breaking her manifesto promises, adding: "We would be Out of Europe but still Run by Europe."
Mrs May is due to propose a "third way" on post-EU customs arrangements, which keeps the Irish border open while allowing Britain to strike trade deals with other countries.
Today she's been visiting Angela Merkel to try and convince the German leader not to shoot down her latest Brexit plan before it's even been signed off by the Cabinet.
What is Theresa May's third way on Brexit?
THERESA May has apparently adopted a "third way" Brexit plan after her two previous suggestions were shot down.
The New Customs Partnership which would see Britain collect tariffs on behalf of the EU was rejected outright by Brexiteers in the Cabinet.
And trade experts warned that the technology needed to make Max Fac - a solution which replaces border controls with electronic monitoring - work won't be ready in time for Brexit.
The third way is designed to bring a compromise on customs between the two systems.
Britain would scrap the blanket tariffs applied by the EU on most goods coming in from outside Europe, and instead set its own import duties.
That is essential in letting the UK strike new trade deals with the rest of the world, with goods coming in tariff-free from countries such as the US.
But to enable big companies to continue using supply chains which span the whole of Europe, Britain will continue to apply EU tariffs on around 4 per cent of products - classified as "unfinished goods".
And European tariffs will also be put on goods which pass through Britain's ports on their way to the EU, but never enter the domestic economy.
Another measure which would tie the UK closely to the EU is Mrs May's proposal for "full regulatory alignment" for goods.
That means Britain would copy European regulations on what products can be sold in shops.
It's intended to ensure goods can still be imported and exported freely, while avoiding curbs on the services sector which makes up most of our economy.
But it could prove controversial because it may hinder trade deals with countries who have different standards for their goods.
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