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| Version 2 | Version 3 |
|---|---|
| Brexit: UK suggests 'temporary customs union' with EU | Brexit: UK suggests 'temporary customs union' with EU |
| (about 9 hours later) | |
| The UK has set out the "ambitious new customs arrangement" it wants to secure with the EU after Brexit. | The UK has set out the "ambitious new customs arrangement" it wants to secure with the EU after Brexit. |
| Ministers said the plans would mean the "freest and most frictionless possible trade" with the rest of Europe. | Ministers said the plans would mean the "freest and most frictionless possible trade" with the rest of Europe. |
| This could include a "temporary customs union" after Brexit to prevent border problems as the UK leaves the EU. | This could include a "temporary customs union" after Brexit to prevent border problems as the UK leaves the EU. |
| 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. | 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. |
| The customs union document is the first of a series of papers to be published by the UK government on key negotiation issues. | The customs union document is the first of a series of papers to be published by the UK government on key negotiation issues. |
| On Wednesday it is expected to set out proposals for the border between Northern Ireland and the Republic of Ireland. | On Wednesday it is expected to set out proposals for the border between Northern Ireland and the Republic of Ireland. |
| What is the customs union? | What is the customs union? |
| Countries in the customs union don't impose tariffs - taxes on imports - on each other's goods. | Countries in the customs union don't impose tariffs - taxes on imports - on each other's goods. |
| Every country inside the union levies the same tariffs on imports from abroad. | Every country inside the union levies the same tariffs on imports from abroad. |
| 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. | 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. |
| Other goods - such as soap or slate - have no tariffs. | Other goods - such as soap or slate - have no tariffs. |
| The UK's departure from the EU's customs union was confirmed at the weekend in a joint article by Chancellor Philip Hammond and Trade Secretary Liam Fox. | The UK's departure from the EU's customs union was confirmed at the weekend in a joint article by Chancellor Philip Hammond and Trade Secretary Liam Fox. |
| A 'streamlined' border | A 'streamlined' border |
| 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. | 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. |
| 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. | 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. |
| 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. | 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. |
| The government said the interim arrangements would mean businesses would only have to adjust once to the new arrangements. | The government said the interim arrangements would mean businesses would only have to adjust once to the new arrangements. |
| All of this will have to be negotiated with the EU - and the two sides have not yet even started discussing trade matters. | All of this will have to be negotiated with the EU - and the two sides have not yet even started discussing trade matters. |
| Other obstacles - including the size of the UK's "divorce bill" - need to be agreed first. | Other obstacles - including the size of the UK's "divorce bill" - need to be agreed first. |
| Mixed UK reaction | Mixed UK reaction |
| 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". | 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". |
| "These fantastical and contradictory proposals provide no guidance for negotiators or certainty for businesses," he added. | "These fantastical and contradictory proposals provide no guidance for negotiators or certainty for businesses," he added. |
| Liberal Democrat Brexit spokesman Tom Brake said the plan would "only delay the economic pain caused by leaving the customs union". | Liberal Democrat Brexit spokesman Tom Brake said the plan would "only delay the economic pain caused by leaving the customs union". |
| "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." | "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." |
| However, the CBI, which represents British businesses, said the proposal was "encouraging". | However, the CBI, which represents British businesses, said the proposal was "encouraging". |
| 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." | 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." |
| Analysis: UK 'hustles' Brussels | Analysis: UK 'hustles' Brussels |
| 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". | 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". |
| "Firms will be told they'll only have to change their processes once," he said. | "Firms will be told they'll only have to change their processes once," he said. |
| "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." | "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." |
| BBC political correspondent Ben Wright said the UK government was "straining to show that it does have a route-map for Brexit". | BBC political correspondent Ben Wright said the UK government was "straining to show that it does have a route-map for Brexit". |
| He said ministers were also attempting to "subtly" put the issue onto the negotiating table sooner than Brussels wants. | He said ministers were also attempting to "subtly" put the issue onto the negotiating table sooner than Brussels wants. |
| "They want to hustle EU negotiators into talking about trade much sooner than Brussels intends," our correspondent said. | "They want to hustle EU negotiators into talking about trade much sooner than Brussels intends," our correspondent said. |
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