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UK Government Reviews Customs Relations with EU
The UK government, led by Prime Minister Keir Starmer, is actively seeking to enhance customs agreements with the European Union without rejoining a full customs union, as confirmed by Home Secretary Yvette Cooper.
Starmer’s visit to Brussels is part of a broader strategy to reset relations with the EU, especially in light of concerns over potential fallout from Donald Trump’s trade tariffs affecting Canada, Mexico, and China. These tariffs pose risks not only to these nations but also to the global economy at large.
Speaking about deepening ties with the EU, Cooper emphasized the importance of developing stronger trade relationships globally. “We want stronger trading relationships all over the world,” she stated. She highlighted ongoing efforts to reset cooperation with European neighbors to enhance trade as well as collaborative endeavours in areas like law enforcement, particularly in addressing illegal small boat crossings.
Cooper acknowledged the need for robust cooperation with countries like France and Germany while also pursuing stronger trading ties with the United States and other nations.
During an interview on Sky News’s Sunday Morning with Trevor Phillips, Cooper addressed what different customs arrangements might entail, expressing the government’s intention to eliminate some bureaucratic barriers at borders. While she firmly ruled out joining a customs union as a “red line,” she indicated the possibility of exploring alternative customs agreements.
Cooper expressed apprehension regarding the economic implications of U.S. tariffs, mentioning the “really damaging impact” they could have on global economic stability. “I don’t think it’s what anybody wants to see,” she remarked during her conversation with the BBC’s Laura Kuenssberg.
While the EU is interested in establishing a youth mobility scheme and achieving concessions on fishing rights and adherence to EU regulations, Starmer’s focus remains on facilitating a defense and security pact, alongside improving trade flows.
Cooper characterized the youth mobility scheme as “not the right starting point for us at all,” yet noted that the government has not outright dismissed it as a possibility in future negotiations.
The ongoing discussions have prompted Ed Davey, leader of the Liberal Democrats, to advocate for comprehensive fiscal analyses concerning the benefits a customs union might provide for growth. In a correspondence directed to Chancellor Rachel Reeves, he urged the Treasury to solicit the Office for Budget Responsibility (OBR) for an evaluation of a potential customs arrangement’s impact on the UK economy and public finances.
In his letter, Davey asserted, “The chancellor is tying herself in knots trying to think up new ways to grow our economy. But there’s a solution right under her nose: a new UK-EU customs union deal that boosts trade for British businesses and raises vital tax revenue for our public services.” He emphasized that this approach could reverse the detrimental effects stemming from previous trade negotiations with the EU, thereby significantly enhancing access to the UK’s largest trading partner.
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www.theguardian.com