Britain Wants Out of EU Customs Union Obligations as Part of Brexit, Prime Minister Says
Britain plans to extract itself from EU Customs Union obligations that limit trade agreement negotiations as part of its exit from the EU, British Prime Minister Theresa May said in a Jan. 17 speech in London (here). There was some question as to whether the United Kingdom would fully cut off involvement in the EU Customs Union as a result of the "Brexit" vote in June (see 1606240041). "I know my emphasis on striking trade agreements with countries outside Europe has led to questions about whether Britain seeks to remain a member of the EU’s Customs Union," she said. "And it is true that full Customs Union membership prevents us from negotiating our own comprehensive trade deals." Therefore, "I do not want Britain to be part of the Common Commercial Policy and I do not want us to be bound by the Common External Tariff," she said. "These are the elements of the Customs Union that prevent us from striking our own comprehensive trade agreements with other countries."
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Still, May would like to pursue duty-free trade with other European countries. "Whether that means we must reach a completely new customs agreement, become an associate member of the Customs Union in some way, or remain a signatory to some elements of it, I hold no preconceived position," she said. "I have an open mind on how we do it. It is not the means that matter, but the ends. And those ends are clear: I want to remove as many barriers to trade as possible. And I want Britain to be free to establish our own tariff schedules at the World Trade Organisation, meaning we can reach new trade agreements not just with the European Union but with old friends and new allies from outside Europe too."