Brexit: UK suggests 'temporary customs union' with EU

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contenteditable="true">http://www.bbc.co.uk/news/uk-politics-40922177</a> </div> <a class="twite__read-more" href="https://web.archive.org/web/20170815065639/http://www.bbc.co.uk/faqs/questions/bbc_online/sharing">Read more about sharing.</a> <p class="twite__new-window" aria-hidden="true">These are external links and will open in a new window</p> <button class="twite__close-button"> <span class="off-screen">Close share panel</span> <div class="twite__close-button-graphic" aria-hidden="true"></div> </button> </div> </li> </ul> </div> </div> </div> </div> </div> <div class="story-body__inner" property="articleBody"> <figure class="media-landscape has-caption full-width lead"> <span class="image-and-copyright-container"> <img class="js-image-replace" alt="Customs union" src="https://web.archive.org/web/20170815065639im_/https://ichef-1.bbci.co.uk/news/320/cpsprodpb/B100/production/_97321354_gettyimages-655949258.jpg" width="976" height="549"> <span class="off-screen">Image copyright</span> <span class="story-image-copyright">Getty Images</span> </span> <figcaption class="media-caption"> <span class="off-screen">Image caption</span> <span class="media-caption__text"> The EU's customs union means members charge the same tariff on goods coming from other countries </span> </figcaption> </figure><p class="story-body__introduction">The UK has set out the "ambitious new customs arrangement" it wants to secure with the EU after Brexit.</p><p>Ministers said the plans would mean the "freest and most frictionless possible trade" with the rest of Europe.</p><p>This could include a "temporary customs union" after Brexit to prevent border problems as the UK leaves the EU.</p><p>Businesses have called for clarity since the UK said it was leaving the customs union - the EU's tariff-free trading area - as part of Brexit.</p><ul class="story-body__unordered-list"> <li class="story-body__list-item"><a href="https://web.archive.org/web/20170815065639/http://www.bbc.co.uk/news/business-40931699" class="story-body__link">Analysis: Back-to-school feel about Brexit papers</a></li> <li class="story-body__list-item"><a href="https://web.archive.org/web/20170815065639/http://www.bbc.co.uk/news/business-36083664" class="story-body__link">Customs union, free trade area and single market - an explainer</a></li> <li class="story-body__list-item"><a href="https://web.archive.org/web/20170815065639/http://www.bbc.co.uk/news/uk-36906796" class="story-body__link">Reality Check: What is a customs union?</a></li> <li class="story-body__list-item"><a href="https://web.archive.org/web/20170815065639/http://www.bbc.co.uk/news/uk-politics-40788669" class="story-body__link">A quick guide to the Brexit negotiations</a></li> </ul><p>The customs union document is the first of a series of papers to be published by the UK government on key negotiation issues. </p><div id="bbccom_mpu_1_2_3" class="bbccom_slot mpu-ad" aria-hidden="true"> <div class="bbccom_advert"> <script type="text/javascript"> /**/ (function() { if (window.bbcdotcom && bbcdotcom.adverts && bbcdotcom.adverts.slotAsync) { bbcdotcom.adverts.slotAsync('mpu', [1,2,3]); } })(); /**/ </script> </div> </div><p>On Wednesday it is expected to set out proposals for the border between Northern Ireland and the Republic of Ireland.</p><figure class="media-landscape no-caption body-width"> <span class="image-and-copyright-container"> <div class="js-delayed-image-load" data-alt="Grey line" data-src="https://web.archive.org/web/20170815065639oe_/https://ichef.bbci.co.uk/news/320/cpsprodpb/42E3/production/_97332171_line976.jpg" data-width="464" data-height="2"></div> </span> </figure><h2 class="story-body__crosshead">What is the customs union?</h2><p>Countries in the customs union don't impose tariffs - taxes on imports - on each other's goods.</p><p>Every country inside the union levies the same tariffs on imports from abroad. </p><p>So, for example, a 10% tariff is imposed on some cars imported from outside the customs union, while 7.5% is imposed on roasted coffee.</p><p>Other goods - such as soap or slate - have no tariffs.</p><p>The UK's departure from the EU's customs union was confirmed at the weekend in a <a href="https://web.archive.org/web/20170815065639/http://www.telegraph.co.uk/news/2017/08/12/britain-will-not-stay-eu-back-door-philip-hammond-liam-fox-declare/" class="story-body__link-external">joint article</a> by Chancellor Philip Hammond and Trade Secretary Liam Fox.</p><figure class="media-landscape no-caption body-width"> <span class="image-and-copyright-container"> <div class="js-delayed-image-load" data-alt="Grey line" data-src="https://web.archive.org/web/20170815065639oe_/https://ichef.bbci.co.uk/news/320/cpsprodpb/42E3/production/_97332171_line976.jpg" data-width="464" data-height="2"></div> </span> </figure><h2 class="story-body__crosshead">A 'streamlined' border</h2><p>According to the newly-published government paper, the UK could ask Brussels to establish a "temporary customs union" after it leaves the EU in March 2019.</p><p>But during this period, it would also expect to be able to negotiate its own international trade deals - something it cannot do as an EU customs union member.</p><p>Once this period expires, the UK will look to agree either a "highly streamlined" border with the EU, or a new "partnership" with no customs border at all.</p><figure class="media-landscape has-caption full-width"> <span class="image-and-copyright-container"> <div class="js-delayed-image-load" data-alt="David Davis and Michel Barnier" data-src="https://web.archive.org/web/20170815065639oe_/https://ichef-1.bbci.co.uk/news/320/cpsprodpb/FD87/production/_97330946_2c894ca2-8518-4408-acee-fbf57bdf498e.jpg" data-width="976" data-height="549"></div> <span class="off-screen">Image copyright</span> <span class="story-image-copyright">Reuters</span> </span> <figcaption class="media-caption"> <span class="off-screen">Image caption</span> <span class="media-caption__text"> Brexit Secretary David Davis (left) and the EU Commission's Michel Barnier are leading the negotiations for the two sides </span> </figcaption> </figure><p>The government said the interim arrangements would mean businesses would only have to adjust once to the new arrangements.</p><p>All of this will have to be negotiated with the EU - and the two sides have not yet even started discussing trade matters.</p><p>Other obstacles - including the size of the UK's "divorce bill" - need to be agreed first.</p><figure class="media-landscape no-caption body-width"> <span class="image-and-copyright-container"> <div class="js-delayed-image-load" data-alt="Grey line" data-src="https://web.archive.org/web/20170815065639oe_/https://ichef.bbci.co.uk/news/320/cpsprodpb/42E3/production/_97332171_line976.jpg" data-width="464" data-height="2"></div> </span> </figure><h2 class="story-body__crosshead">Mixed UK reaction</h2><p>Keir Starmer, Labour's shadow Brexit secretary, said the proposals were "incoherent and inadequate" and were designed to "gloss over deep and continuing divisions within the cabinet".</p><p>"These fantastical and contradictory proposals provide no guidance for negotiators or certainty for businesses," he added.</p><figure class="media-landscape has-caption full-width"> <span class="image-and-copyright-container"> <div class="js-delayed-image-load" data-alt="Keir Starmer" data-src="https://web.archive.org/web/20170815065639oe_/https://ichef.bbci.co.uk/news/320/cpsprodpb/9103/production/_97332173_d449c0a3-edb6-4f73-be32-efbd06e9ea4d.jpg" data-width="976" data-height="549"></div> <span class="off-screen">Image copyright</span> <span class="story-image-copyright">PA</span> </span> <figcaption class="media-caption"> <span class="off-screen">Image caption</span> <span class="media-caption__text"> Labour MP Keir Starmer said the plans were "fantastical" </span> </figcaption> </figure><p>Liberal Democrat Brexit spokesman Tom Brake said the plan would "only delay the economic pain caused by leaving the customs union".</p><p>"We still face the prospect of more red tape for businesses, longer queues at our borders and higher prices for consumers once the transition comes to an end."</p><p>However, the CBI, which represents British businesses, said the proposal was "encouraging".</p><p>Its deputy director general, Josh Hardie, added: "The clock is ticking and what matters now is giving companies the confidence to continue investing as quickly as possible."</p><figure class="media-landscape no-caption body-width"> <span class="image-and-copyright-container"> <div class="js-delayed-image-load" data-alt="Grey line" data-src="https://web.archive.org/web/20170815065639oe_/https://ichef-1.bbci.co.uk/news/320/cpsprodpb/42E3/production/_97332171_line976.jpg" data-width="464" data-height="2"></div> </span> </figure><h2 class="story-body__crosshead">Analysis: UK 'hustles' Brussels</h2><p>Adam Fleming, BBC Brussels reporter, said the UK was seeking a customs union agreement "that will keep things broadly the same for an interim period - an attempt to reassure business".</p><p>"Firms will be told they'll only have to change their processes once," he said. </p><p>"In Brussels, EU negotiators are likely to stick to their position that that the future relationship can't be considered until agreement has been reached on their priority issues - the rights of citizens, a financial settlement and the Irish border."</p><p>BBC political correspondent Ben Wright said the UK government was "straining to show that it does have a route-map for Brexit".</p><p>He said ministers were also attempting to "subtly" put the issue onto the negotiating table sooner than Brussels wants.</p><p>"They want to hustle EU negotiators into talking about trade much sooner than Brussels intends," our correspondent said.</p><figure class="media-landscape no-caption full-width"> <span class="image-and-copyright-container"> <div class="js-delayed-image-load" data-alt="BBC News Daily" data-src="https://web.archive.org/web/20170815065639oe_/https://ichef-1.bbci.co.uk/news/320/cpsprodpb/7C20/production/_95167713_image1.png" data-width="624" data-height="77"></div> </span> </figure><p><a href="https://web.archive.org/web/20170815065639/http://pages.email.bbc.com/subscribe" class="story-body__link">Get news from the BBC in your inbox, each weekday morning</a></p><figure class="media-landscape no-caption full-width"> <span class="image-and-copyright-container"> <div class="js-delayed-image-load" data-alt="Blue line" data-src="https://web.archive.org/web/20170815065639oe_/https://ichef-1.bbci.co.uk/news/320/cpsprodpb/16919/production/_95214429_image2.png" data-width="624" data-height="22"></div> </span> </figure> </div> </div> <div class="tags-container"> <h2 class="tags-title story-body__crosshead">Related Topics</h2> <ul class="tags-list"> <li 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