Starmer refuses EU customs union proposal following Lammy's remarks

Sir Keir Starmer has reiterated that he has no plans to re-enter the European Union's customs union, following comments from Deputy Prime Minister David Lammy about the economic benefits such arrangements can bring. Speaking on a podcast on Thursday, Lammy noted that Brexit had clearly harmed the UK economy and cited Turkey's growth as an example of the advantages of a customs union.

Lammy stated that rejoining the EU customs union is "not currently our policy," but pointed out that countries like Turkey have experienced economic expansion through their union with the bloc. Meanwhile, Prime Minister Starmer emphasized his commitment to enhancing trade relations with the EU without reversing Labours post-Brexit policies.

Labours election manifesto explicitly rules out rejoining the EU customs union, which harmonizes tariffs on imports across the remaining 27 member states. The party has also rejected re-entry into the single market, which standardizes certain laws to facilitate trade in goods and services.

Instead, the government is pursuing closer economic links via bilateral agreements covering areas such as food standards, youth visas, carbon pricing, and electricity trading. The topic of customs unions has resurfaced recently, as the Liberal Democrats have campaigned for a renewed customs union deal with the EU.

Turkey as a Reference Model

On The News Agents podcast, Lammy described Brexits impact as severely damaging, removing the UK from a key trading arena and causing substantial friction. When asked if he supported a customs union with the EU, he responded that it is "not currently our policy," though he highlighted Turkeys apparent economic benefits from its customs union with the bloc.

Turkeys agreement, which excludes agriculture and services, reduces the need to prove the origin of goods traded with the EUa process that has created significant trade friction for the UK since leaving the EU. This arrangement has been cited as a potential model to strengthen EU ties without fully rejoining the customs union. However, it limits Turkeys capacity to conduct an independent trade policy, a key promise made by Brexit proponents.

Government Response

Commenting on Lammys statements, Sir Keir emphasized that Labours position remains consistent with its manifesto. He described the UKs relationship with Europe as having been "completely reset" since Labour took office last year.

A Downing Street spokesperson downplayed Lammys remarks, reiterating that the government aims to restore ties with the EU "while maintaining our red lines." The spokesperson added that Labour intends to foster economic growth through "open trading relationships," referencing recent trade and tariff deals with India and the United States made possible by Brexit.

The Liberal Democrats have used Lammys comments to advocate for a customs union vote, urging him to "vote with us" next week. Party spokesperson Al Pinkerton stated, "Its becoming clear that a customs union could address the economic challenges facing Britain. Lammy should act on his own words."

Author: Harper Simmons