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Brexit talks: EU chief negotiator warns Theresa May that trade barriers are 'unavoidable' if UK leaves customs union Brexit talks: EU chief negotiator warns Theresa May that trade barriers are 'unavoidable' if UK leaves customs union
(35 minutes later)
The EU’s chief Brexit negotiator has warned Theresa May that trade barriers are “unavoidable” if she carries out her plan to leave the customs union.The EU’s chief Brexit negotiator has warned Theresa May that trade barriers are “unavoidable” if she carries out her plan to leave the customs union.
Michael Barnier told the Prime Minister that “the time has come to make a choice” – reflecting growing Brussels frustration with the UK Government’s failure to set out its aims clearly. Michel Barnier also told the Prime Minister that “the time has come to make a choice” – reflecting growing Brussels frustration with the UK Government’s failure to set out its aims clearly.
After meeting Mrs May and David Davis, the Brexit Secretary, in Downing Street, Mr Barnier said the EU “need clarity” on the UK’s hopes for a post-Brexit trading partnership.After meeting Mrs May and David Davis, the Brexit Secretary, in Downing Street, Mr Barnier said the EU “need clarity” on the UK’s hopes for a post-Brexit trading partnership.
And, on No 10’s insistence that it will not be part of any customs union, he warned: "Outside the single market and customs union, barriers to trade in goods and services are unavoidable. The time has come to make a choice.” And, on No 10’s insistence that it will not be part of any customs union, he warned: "Without the customs union, and outside the single market, barriers to trade in goods and services are unavoidable. The time has come to make a choice.”
More follows… Mr Barnier also appeared to rebuff Mrs May’s apparent attempt to deny full settlement rights to EU citizens who arrive in the UK after Brexit day – but before the end of a transition period.
That dispute threatens the UK Government’s hope of nailing down the transition agreement in the coming weeks, with businesses they will otherwise shift investment overseas. 
“The conditions are very clear. Everyone has to play by the same rules in the transition,” Mr Barnier said, at a brief joint press conference alongside Mr Davis.
The face-to-face talks – the first to be staged in London – followed the overnight announcement from No 10 that Britain would definitely not be part of any customs union with the EU.
The move appeared to be an attempt to calm the anger of Brexiteer Conservative MPs threatening a leadership bid if Mrs May seeks to keep close economic ties.
At stake, believe hard Brexit supporters, is the prize of being able to strike free-trade deals with non-EU countries, which cannot be done from within the customs union.
However, business leaders fear an explosion in red tape and gridlock at Britain’s borders if goods can no longer flow freely to and from the Continent.