Ahead of a symbolic vote on the issue this week, the government has reiterated it’s commitment to leaving the EU’s custom union.
Last Wednesday, the government suffered defeat on the EU Withdrawal Bill in the House of Lords when members voted in favour of staying in the customs union.
As a result, MPs will get a chance to debate the proposal on Thursday.
Although, a senior Downing Street source said government’s position would not change.
“We will not be staying in the customs union or joining a customs union.”
Labour has called for the UK to join a new customs union post-Brexit, saying it would leave the current one but negotiate a treaty afterwards that would “do the work of the customs union.”
What is a customs union?
A customs union is a form of trade agreement between two or more countries. The purpose of a customs union, like that of other trade agreements, is to make it easier for member states to trade.
Customs unions reduce administrative and financial trade barriers (such as customs checks and charges) and enhance economic cooperation.
It means they decide not to impose tariffs (taxes on imports) on each other’s goods and agree to impose common external tariffs on goods from countries outside their customs union.
However, they also limit the freedom of their individual members to strike their own trade deals.
by Ben – Correspondent for the General news section.