05 February 2018

Financial Times: Time for UK to make a choice on Brexit trade future, warns Michel Barnier

He spoke after meeting Theresa May, the UK prime minister, and David Davis, the Brexit secretary, in Downing Street.

Over the weekend, Mrs May’s spokesman said that the UK will be “categorically leaving the customs union” after Brexit. The arrangement allows goods to cross the EU’s internal borders without any duties while members impose a common external tariff on goods entering the union.

But being part of the customs union would limit the UK’s ability to agree trade deals with other countries. “Brexit is [ ... ] about the freedom to strike out into the world,” said Mrs May’s spokesman.

Downing Street said on Monday that the UK would seek instead a “customs partnership” where the UK collected EU tariffs for goods heading towards the continent and vice versa. The other option being considered by Mrs May is a hard customs break with the EU, but using technology to smooth border checks.

Secret Brexit paper – how the numbers compare Play video But EU officials believe the UK ideas are “unrealistic” and there is frustration that the UK is still toying with ideas that they believe will not work in practice.

Mr Barnier warned the UK it was “time to make a choice” on its future customs arrangements, and said there was “not a moment to lose” ahead of a key European Council meeting in March.

He told Mrs May and Mr Davis it was vital that Britain set out its own vision of a future UK/EU relationship before the March summit, otherwise EU leaders would simply set down their own terms.

Mrs May’s Brexit cabinet will meet on Wednesday and Thursday this week to discuss the future relationship but is unlikely to reach any firm conclusions. Another meeting is likely next week.

Mr Davis confirmed Britain’s intention to leave the single market and customs union “in the longer term” after a two-year transition period, which he hoped to agree at the March European Council.

Mr Barnier said there remained “points of divergence” on the transition agreement, thought to include Mrs May’s insistence that EU citizens arriving after Brexit day on March 29 2019 should not have the right to remain in Britain. [...]

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Statement by Michel Barnier following his working lunch in London with David Davis

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Related article on The Guardian: Ruling out a customs union is 'profound mistake', says Benn

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