Theresa May forced to rule out customs union with the EU after Brexiteers threatened walk-out
Following warnings the Conservative party would split if she opted to keep Britain tied to the EU’s trading rules the PM has categorically ruled out any sort of union
THERESA May was last night forced to rule out any form of customs union with the EU after Tory Brexiteers threatened a mass walk-out.
The PM had even been warned of a formal split in the Conservative party if she opted to keep Britain tied to the EU’s trading rules, which would bar us from striking new trade deals.
Making the warning very clear to Mrs May, a senior Tory MP told The Sun : “If they go for a customs union, the party will split.”
It followed other warnings from Brexiteers that the PM would face a “cavalry” of opposition from her party if she chose to keep Britain in a customs union with Brussels.
According to the Sunday Times Tory MPs also threatened to stage a coup if she rejected their calls.
They warned that doing so would see her replaced with a Brexit “dream team” of Boris Johnson as PM, Michael Gove as deputy PM and Jacob Rees-Mogg as Chancellor.
But in a significant move last night ahead of a crucial week of Brexit meetings, a Downing Street source said: “It is not our policy to stay in a Customs Union.”
Instead the PM will propose two options: a customs partnership or a “highly streamlined customs arrangement.”
It is the first time that No10 has categorically ruled out the prospect of Britain being part of any customs union with the EU after Brexit.
It comes amid reports that members of Mrs May's 'war cabinet' believe some kind of compromise could still be struck in a bid to end the rift.
Ministers are said to be drawing up secret plans to ask Brexiteers to sign up to a time-limited extension to parts of the existing customs union, reports.
This could allow trade deals with non-EU nations if short-term economic harm could be avoided.Some in Downing Street believe this could drive a wedge between Boris Johnson and Michael Gove.
A senior member of government told the paper No 10 was prepared to play them off against each other by doing 'what any good leader does: divide and rule'.
What is the EU customs union?
BEING a part of it is one of the founding treaties binding members of the EU, and is a central part of the bloc’s trade policy:
- It means they can all trade freely with each other at no cost, and agree to charge the same tariff on imports from countries outside it.
- But staying inside the EU Customs Union means it is tied to its arrangements with the rest of the world.
- This means the UK cannot negotiate its own trade deals with counties like India and China – one of the key issues for Brexiteers.
- Leaving it would also mean Britain would not have to continue to pay contributions to Brussels - in 2015 it paid £13billion.
- It would also be able to ditch free movement rule and take back control of immigration, and not be subject to European Court of Justice laws.
- But those who want us to stay in say the UK will face tariffs to sell our goods and services with our biggest trading partner the EU.
- And maintaining membership means the soft border between Northern Ireland and the Republic of Ireland can continue, and not go back to having customs checks.
It comes ahead of a crucial week for the PM on Brexit. Tomorrow she will host a working lunch in No10 with the EU’s chief Brexit negotiator Michel Barnier and her own Brexit chief David Davis.
She will then finally hammer out her Brexit blueprint when she convenes her Brexit “war cabinet” on Wednesday and Thursday. They will meet for two hours on both days for showdown talks between ministers such as Philip Hammond and Amber Rudd who favour a softer Brexit opposite Boris Johnson and Michael Gove who will argue in favour of a clean break from Brussels rules.
Yesterday Ms Rudd, the Home Secretary, insisted ministers won’t be intimidated by threats from Tory Brexiteers - and said she was confident the Cabinet’s Brexit sub-committee will reach an agreement.
She told the Andrew Marr Show: “I have a surprise for the Brexiteers, which is the committee that meets in order to help make these decisions is more united than they think.
“We meet in the committee. We meet privately for discussions. I think that we will arrive at something which suits us all.
“There will be choices to be made within that, but we all want the same thing which is to arrive at a deal which works for the UK.”
She said Mrs May had an “open mind” as to how to reach a deal that delivers “frictionless” trade at the border.
But minutes later the housing minister Dominic Raab, a prominent member of the Vote Leave campaign, said anything that looks like a customs union will not get the support of Tory Brexiteers.
Putting pressure on the PM, he told ITV’s Peston on Sunday show: “I don’t think we will be in any form - at least conceived in international trade practice - of customs union.
“Because if we were we would have our hands tied in negotiating free trade deals with other parties, whether that is Brazil, China or India.
“The Prime Minister has been very clear we want to be able to grasp those opportunities.”
Attempting to draw a line under the row last night, a Downing Street source said: “To put this to rest, we are categorically leaving the Custom Union. At home, Brexit is about taking back control of our money, laws and borders. We are going to deliver that."
But Brexit is also about the freedom to strike out into the world and sign our own trade deals. We want a good, deep trade deal with the EU and customs arrangement which are as frictionless as possible.
But we must also be free to sign those trade deals with the rest of the world. We have brilliant companies in the UK and we want to strengthen their opportunities to export. We would not want to do something that limits those opportunities.
So it is not our policy to stay in the Customs Union. It is not our policy to stay in a Customs Union.Our policy was set out very clearly in the summer in our customs future partnership paper: we are proposing either of two models - a customs partnership or a highly streamlined customs arrangement. And we are going to get a deal that works for the UK.”
But Tory infighting continued last night when Home Office minister Ben Wallace appeared to accuse Defence Secretary Gavin Williamson of briefing against him.
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Newspaper reports over the weekend claimed Mr Wallace, a close ally of Boris Johnson, was close to resigning to trigger a leadership contest.
But Mr Wallace took to Twitter to deny he was the minister in question.
And in a veiled dig at Mr Williamson, who used to work as a manager at a fireplace company, Mr Wallace tweeted last night: "There is something very Dad’s Army about the Mail on Sunday story that I’m resigning. I shall put the paper in the fireplace where it belongs."