The government has insisted that the UK shall leave the European Union’s customs union after Brexit.
According to the BBC, a senior Downing Street source said the following:
‘We will not be staying in the customs union or joining a customs union.’
This comes ahead of a vote to be held by MPs this week regarding the post-Brexit membership of the customs union after the House of Lords last week voted against Prime Minister Theresa May’s ruling against staying in the union.
Were Britain to remain in a customs union, it would continue to have tariff-free trade with countries in the EU but would also be unable to create new trade deals with other countries.
Commenting on the financial implications of remaining in the customs union after Brexit, Fultum Post Economic Editor Oliver Stanley said in February that ‘even were we to retain some influence in the making of the EU’s trade deals as part of a new customs union, the idea of remaining within one would still be totally undesirable.’
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