LONDON DAILY ARCHIVE
Ed Davey Urges Keir Starmer to Open Talks on New UK-EU Customs Union
Lib Dem leader Ed Davey calls for UK to begin negotiations for a new customs deal with the EU, citing economic benefits.
03 February 2025 · 09:10 UTC
Davey, speaking ahead of Starmer's meeting with EU officials in Brussels, argued that such a deal could stimulate the UK economy more effectively than other current proposals, such as those put forward by Chancellor Rachel Reeves.
He also proposed that the UK could join the Pan-Euro-Mediterranean (PEM) convention as a first step toward this goal, which would allow tariff-free trade with several countries across Europe, North Africa, and the Middle East.
While Labour has indicated openness to joining PEM, it has ruled out rejoining the EU's customs union, which the UK left in 2021. Davey's call for action comes as Prime Minister Rishi Sunak prepares for talks focused on defence and security, marking the first such meeting between a British leader and EU representatives since the UK's departure from the EU.
In a BBC interview, Davey emphasized the potential benefits of a new customs union, claiming it could strengthen UK-EU relations and boost trade.
He also urged Chancellor Reeves to task the Office for Budget Responsibility with assessing the potential economic impact of a new customs arrangement, with the findings to be included in the Spring Statement in March.
The EU’s trade commissioner, Maros Sefcovic, recently expressed openness to the UK joining PEM, while the UK government has remained firm in its position not to rejoin the EU customs union or single market.
Tory critics, including shadow trade secretary Andrew Griffith, argue that such proposals risk reopening past divisions and pushing the UK back toward closer ties with the EU. Griffith and other Conservative leaders continue to advocate for stronger trade relations with the US as the priority.