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Monday, Feb 03, 2025

UK Seeks Improved Trade with EU While Maintaining Red Line on Customs Union

UK Seeks Improved Trade with EU While Maintaining Red Line on Customs Union

Home Secretary Yvette Cooper outlines the UK government's stance on customs arrangements with the EU, reaffirming opposition to rejoining a full customs union.
As Prime Minister Keir Starmer heads to Brussels for talks with EU leaders, Home Secretary Yvette Cooper emphasized the UK government's intention to improve trade relations with the European Union while maintaining a key red line: the UK will not rejoin a customs union or the single market.

Cooper stressed that the government is focused on reducing border bureaucracy and enhancing cooperation on issues such as trade and law enforcement, particularly in relation to tackling small boat crossings.

Despite this, she ruled out a customs union as part of any new arrangement, although other types of customs agreements remain a possibility.

Cooper also addressed concerns over potential global economic impacts from US trade tariffs, especially on countries such as Mexico, Canada, and China.

Starmer’s ongoing efforts to reset UK-EU relations include pursuing a defense and security pact, along with smoother trade, while EU leaders have pushed for a youth mobility scheme, fishing rights concessions, and adherence to EU regulations.

The Liberal Democrats, led by Ed Davey, have called for a full fiscal analysis of the potential economic impact of a UK-EU customs deal, urging the Treasury to commission the Office for Budget Responsibility (OBR) to assess the potential benefits of a customs union for UK trade and public finances.
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