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Brexit: jobs at risk without frictionless trade, warns Greg Clark Brexit: jobs at risk without frictionless trade, warns Greg Clark
(35 minutes later)
Tory Brexit moderates and business groups have made a last-ditch attempt to push for Theresa May’s preferred customs plan, with the business secretary warning that thousands of jobs would be at risk unless there is frictionless trade.Tory Brexit moderates and business groups have made a last-ditch attempt to push for Theresa May’s preferred customs plan, with the business secretary warning that thousands of jobs would be at risk unless there is frictionless trade.
Greg Clark dismissed the idea that the prime minister’s idea for a customs partnership, in which the UK would collect import duties on behalf of the EU, had been rejected at a meeting last week of May’s Brexit inner cabinet. Greg Clark dismissed the idea that the prime minister’s idea for a customs partnership – in which the UK would collect import duties on behalf of the EU – had been rejected at a meeting last week of May’s Brexit inner cabinet.
Clark, one of May’s key allies on the issue, said thousands of car industry jobs could be lost unless firms could rely on instant deliveries of parts from the EU. The CBI and British Chambers of Commerce (BCC) then both rushed out supportive statements.Clark, one of May’s key allies on the issue, said thousands of car industry jobs could be lost unless firms could rely on instant deliveries of parts from the EU. The CBI and British Chambers of Commerce (BCC) then both rushed out supportive statements.
While a Downing Street source dismissed as “complete nonsense” the idea that this amounted to a coordinated campaign ordered by No 10, there were clear signs of a moderate Tory fightback against the influence of hard Brexiters in the cabinet and on the Conservative backbenches.While a Downing Street source dismissed as “complete nonsense” the idea that this amounted to a coordinated campaign ordered by No 10, there were clear signs of a moderate Tory fightback against the influence of hard Brexiters in the cabinet and on the Conservative backbenches.
Jacob Rees-Mogg, the head of the latter group, reiterated his warnings to May not to water down departure from the customs union, saying it would be “very odd” for her to push for the customs partnership.Jacob Rees-Mogg, the head of the latter group, reiterated his warnings to May not to water down departure from the customs union, saying it would be “very odd” for her to push for the customs partnership.
In contrast, the former education secretary Justine Greening warned that hardline Brexiters, including in the cabinet, must make some compromises or risk alienating a generation of young voters by pushing through an economically damaging deal. In contrast, the former education secretary Justine Greening said hardline Brexiters, including those in the cabinet, must make some compromises or risk alienating a generation of young voters by pushing through an economically damaging deal.
The latest jostling follows a meeting of May’s Brexit inner cabinet on Wednesday. This broke up without agreement, but with a seeming narrow majority against her preferred option, helped by the replacement of Amber Rudd as home secretary by the more leave-minded Sajid Javid. A meeting of May’s Brexit inner cabinet on Wednesday broke up without agreement but apparently with a narrow majority against her preferred option.
With no new meeting of the Brexit cabinet yet scheduled, discussions could resume at the full cabinet on Tuesday. Brexiters are pushing for a maximum facilitation model, or “max fac”, which would use technology to minimise border checks. The EU has rejected both this and May’s preferred plan as unworkable.With no new meeting of the Brexit cabinet yet scheduled, discussions could resume at the full cabinet on Tuesday. Brexiters are pushing for a maximum facilitation model, or “max fac”, which would use technology to minimise border checks. The EU has rejected both this and May’s preferred plan as unworkable.
Clark, speaking on BBC1’s Andrew Marr Show, denied May’s plan was no longer an option, saying the Wednesday gathering had been “a much more professional, collegiate discussion than you would ever think from the reports”.Clark, speaking on BBC1’s Andrew Marr Show, denied May’s plan was no longer an option, saying the Wednesday gathering had been “a much more professional, collegiate discussion than you would ever think from the reports”.
It was, he said, “possible” that it may take until 2023 to put new customs infrastructure in place, adding: “If we can make progress, which I think we can, as to what the right arrangement is for the long term, then it may be possible to bring that in over that period of time.” He said it was possible that it would take until 2023 to put new customs infrastructure in place. “If we can make progress, which I think we can, as to what the right arrangement is for the long term, then it may be possible to bring that in over that period of time.”
He also warned that thousands of jobs in the auto industry could be lost if there was not “a customs agreement that has the minimum of frictions”. Clark also said thousands of jobs in the car industry could be lost if there was not “a customs agreement that has the minimum of frictions”.
In a statement soon afterwards Carolyn Fairbairn, director general of the CBI, said any customs deal must involve “no tariffs or additional border checks, delays or red tape”. In a statement soon afterwards, Carolyn Fairbairn, director general of the CBI, said any customs deal must involve “no tariffs or additional border checks, delays or red tape.”
She said: “This is a time for pragmatic solutions, not ideology. To protect frictionless trade and ensure no return to a hard border on the island of Ireland, a customs union model based on status quo principles should remain in place unless and until an alternative is ready and workable.”She said: “This is a time for pragmatic solutions, not ideology. To protect frictionless trade and ensure no return to a hard border on the island of Ireland, a customs union model based on status quo principles should remain in place unless and until an alternative is ready and workable.”
Adam Marshall, head of the BCC, said: “If the government’s position is that the UK will not be in a customs union with the EU, it has an obligation to make this shift happen with the least possible disruption to business, consumers and the wider economy.”Adam Marshall, head of the BCC, said: “If the government’s position is that the UK will not be in a customs union with the EU, it has an obligation to make this shift happen with the least possible disruption to business, consumers and the wider economy.”
Rees-Mogg told ITV’s Peston on Sunday such warnings were not believable: “This ‘project fear’ has been so thoroughly discredited that you would have thought it would have come to an end by now.” Rees-Mogg told ITV’s Peston on Sunday such warnings were not believable. “This ‘project fear’ has been so thoroughly discredited that you would have thought it would have come to an end by now,” he said.
EU members (plus Turkey, Andorra, Monaco and San Marino) trade without customs duties, taxes or tariffs between themselves, and charge the same tariffs on imports from outside the EU. Customs union members cannot negotiate their own trade deals outside the EU, which is why leaving it – while hopefully negotiating a bespoke arrangement – has been one of the government’s Brexit goals. See our full Brexit phrasebook.EU members (plus Turkey, Andorra, Monaco and San Marino) trade without customs duties, taxes or tariffs between themselves, and charge the same tariffs on imports from outside the EU. Customs union members cannot negotiate their own trade deals outside the EU, which is why leaving it – while hopefully negotiating a bespoke arrangement – has been one of the government’s Brexit goals. See our full Brexit phrasebook.
But Greening said people were becoming “frankly fed up” with such debates. She told told Sky’s Sophy Ridge on Sunday: “It seems to be focused all about the personalities, all about the politicians, and not about people. And that needs to change.” Greening said people were becoming “frankly fed up” with such debates. She told Sky’s Sophy Ridge on Sunday: “It seems to be focused all about the personalities, all about the politicians, and not about people. And that needs to change.”
She hinted that May should call the bluff of Johnson and other pro-Brexit ministers, who have reportedly threatened to resign if the prime minister insists on her plan. She hinted that May should call the bluff of Boris Johnson and other pro-Brexit ministers, who have reportedly threatened to resign if the prime minister insists on her plan.
“I hope they can show some leadership and I hope they recognise that it will require give and take from them as well,” Greening said. “All I can say is, I resigned from government and I’ve gone to the backbenches, and I’m doing just fine.”“I hope they can show some leadership and I hope they recognise that it will require give and take from them as well,” Greening said. “All I can say is, I resigned from government and I’ve gone to the backbenches, and I’m doing just fine.”
Greening also said voters wanted to hear “pragmatic voices” in the Conservative party, saying many young people in her Putney constituency in south-west London would not forgive them if they put dogma above practicalities . Greening said voters wanted to hear “pragmatic voices” in the Conservative party, saying many young people in her Putney constituency in south-west London would not forgive them if they put dogma above practicalities.
“Unless you make it work for communities like mine, as those voters get older and they form a bigger part of the electorate, they will simply demand a change,” she said. “Unless you make it work for communities like mine, as those voters get older and they form a bigger part of the electorate they will simply demand a change,” she said.
BrexitBrexit
Justine Greening
Greg ClarkGreg Clark
Conservatives
Theresa MayTheresa May
Boris Johnson Foreign policy
Sajid Javid
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