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MPs have supported the proposals The move to create a new UK-EU customs union raises questions about whether key Brexit pledges could soon be undone.
In a “historic” parliamentary vote on Tuesday, the Customs Union (Duty to Negotiate) Bill received marginal support in the Commons, as 13 rebel Labor MPs voted in support.
Amazingly a tie of 100 votes to 100 meant that the deciding vote was given to Deputy Speaker Caroline Knox, who, in accordance with precedent, voted yes to allow further debate.
The bill, introduced by the Liberal Democrats’ Europe spokesman Al Pinkerton, would require The government will start talks on joining A Customs union with the European Union.
Lib Dem leader Ed Davey said the symbolic vote was “a historic victory” against “the economic nightmare of the Conservatives’ broken Brexit deal”.
What is a customs union?
A customs union A trading arrangement established between member countries that eliminates tariffs on some or all of the goods they trade. It also establishes a ‘common external tariff’, meaning all members apply the same tariff on most imported goods.
There are currently 16 customs unions operating around the world, which are recognized by the World Trade Organization.
European Union The customs union consists of the 27 EU member states, plus Monaco and the British Overseas Territories of Akrotiri and Dhekelia (located on Cyprus). This makes it the largest in the world.
UK After leaving the EU Customs Union at the end of 2020 Brexit In a referendum held four years ago, voters chose to leave the European Union.
This was ratified in the 2018 Withdrawal Agreement, where a trade agreement was negotiated that allows tariff-free EU-UK trade, but only for products that originate in either country. Estimates suggest that trade has declined by about 13 percent since then.
Could Britain rejoin the EU customs union?
It is unlikely that Britain will once again become a member of the EU customs union – but the Lib Dems’ Bill Instead the nation was called upon to form a new customs union with the bloc.
There is a precedent for this set by the EU-Türkiye Customs Union, which has been in effect since 1995. This has seen Turkey align most of its technical goods rules with the EU to simplify trade with a few exceptions, and trade between the two has increased by an estimated 55 to 65 percent.
Another model could follow proposals put forward by Theresa May in 2018, but rejected MPsCreating a ‘customs zone’ between Great Britain and the EU to prevent a hard border between Ireland and Northern Ireland.
This would mean that there would be no tariffs between the UK and the EU, except on fisheries and aquaculture products. However, Britain would also have to follow the EU’s trade defense policies and stick to its state aid rules, leading to criticism that the deal threatened to overly restrict the country’s free trade policy.
Will MPs move forward on the proposals?
Despite gaining support in the Commons, it is unlikely that the Lib Dems’ bill will continue to meaningfully pass through Parliament and become law.
After Tuesday’s vote, Prime Minister Sir Keir Starmer rejected an EU-UK customs union, insisting it would not be “sensible” to look at new deals with countries such as the US and India on trade. He also pointed out Labor The manifesto commits not to join the customs union or single market.
Although the majority of Labor MPs did not vote on the proposed bill at this stage, the party’s overwhelming majority means it is unlikely to go ahead without the government’s support.