EU Open to Discussing UK Customs Union Amid Labour Pressure
The European Commission is willing to engage in talks about a customs union with the UK, its economy commissioner Valdis Dombrovskis revealed. The comments come as pressure mounts within the Labour party to explore closer trade ties with the EU.
Dombrovskis stated that the commission would be "open-minded" regarding discussions on a customs union, which could potentially bring significant benefits for economic growth in turbulent times. This development comes as Labour leader Keir Starmer seeks to deepen UK-EU single market connections, having expressed doubts about the effectiveness of a customs union.
A customs union with the EU could lead to questions over the UK's trade agreements with countries like India, Australia, and Japan. In theory, joining such an agreement would grant the UK access to around 40-plus existing EU trade deals with more than 70 countries and regions.
Starmer has indicated that there are other areas within the single market where further progress can be made. However, speaking after discussions with ministers in London, Dombrovskis suggested that a full membership of the single market would require the "four freedoms," including freedom of movement – an idea EU insiders still believe is difficult to implement due to existing policies.
Dombrovskis also emphasized that any agreement should prioritize mutual benefit. In contrast, Cabinet Office minister Nick Thomas-Symonds advocated for a pragmatic approach to reset the UK-EU relationship, citing £9 billion annual benefits from food and carbon trading deals by 2040.
Meanwhile, EU leaders will gather in Belgium next week for a special summit to discuss strengthening the single market, which they consider crucial. European Council president António Costa described this as "a strategic imperative" – highlighting the urgency behind these discussions.
The European Commission is willing to engage in talks about a customs union with the UK, its economy commissioner Valdis Dombrovskis revealed. The comments come as pressure mounts within the Labour party to explore closer trade ties with the EU.
Dombrovskis stated that the commission would be "open-minded" regarding discussions on a customs union, which could potentially bring significant benefits for economic growth in turbulent times. This development comes as Labour leader Keir Starmer seeks to deepen UK-EU single market connections, having expressed doubts about the effectiveness of a customs union.
A customs union with the EU could lead to questions over the UK's trade agreements with countries like India, Australia, and Japan. In theory, joining such an agreement would grant the UK access to around 40-plus existing EU trade deals with more than 70 countries and regions.
Starmer has indicated that there are other areas within the single market where further progress can be made. However, speaking after discussions with ministers in London, Dombrovskis suggested that a full membership of the single market would require the "four freedoms," including freedom of movement – an idea EU insiders still believe is difficult to implement due to existing policies.
Dombrovskis also emphasized that any agreement should prioritize mutual benefit. In contrast, Cabinet Office minister Nick Thomas-Symonds advocated for a pragmatic approach to reset the UK-EU relationship, citing £9 billion annual benefits from food and carbon trading deals by 2040.
Meanwhile, EU leaders will gather in Belgium next week for a special summit to discuss strengthening the single market, which they consider crucial. European Council president António Costa described this as "a strategic imperative" – highlighting the urgency behind these discussions.