Labour's Options on EU Customs Union Remains a Stalemate as Growth Concerns Mount
In recent weeks, Keir Starmer's government has been exploring alternative solutions to boost economic growth, but the Labour Party remains divided over its approach towards rejoining the customs union with the European Union. According to sources close to the Prime Minister, a closer relationship with Europe is becoming increasingly prominent in his agenda, however, it appears that Nick Thomas-Symonds will not be advocating for a customs union without Keir Starmer's explicit support.
The idea of joining the customs union has long been associated with Labour Party policy. In early 2018, when Shadow Brexit Secretary, Jeremy Corbyn, was close to quitting the shadow cabinet over attempts to delay rejoining the EU, this position held sway within the party. Following two years of intense debate on Brexit, Starmer led his MPs in supporting Boris Johnson's deal, which included a customs union.
Despite its long history of support for a customs union, Labour has since moved away from this policy due to concerns about its implications for Brexit. However, with the UK facing an economic downturn and calls growing louder for rejoining the EU customs union, discussions among Labour ministers have become increasingly heated.
In recent weeks, the government has been pointing to economic analysis suggesting that joining the customs union could boost GDP by 2.2%. The Economic Adviser to the Prime Minister, Minouche Shafik, argued that a return to the customs union would be an effective way to generate growth before the next election. Several sources have confirmed informal discussions on this issue within No10.
While some cabinet ministers are urging Starmer to rejoin the customs union without delay, others are more cautious. They point out that Labour's manifesto commitment to maintaining its own trade policy means that it would be difficult for the party to agree to abandoning these rights if they were to join the EU customs union again.
Despite concerns over this issue, one thing is clear - Starmer appears unwilling to make concessions on his party's core Brexit policy. The Prime Minister has stated his commitment to the fundamental architecture of the current Brexit deal and downplayed pressure from pro-European ministers in his cabinet.
Sources close to negotiations warn that joining the customs union would require significant changes to trade policies and agreements made with other countries such as the US and India. Furthermore, there is a risk that the EU could block any UK government's attempt to rejoin due to internal domestic politics.
For now, it appears that Labour will continue its cautious approach to rejoining the customs union. However, given the increasingly dire economic situation facing the country, this stance may not remain tenable for long.
In recent weeks, Keir Starmer's government has been exploring alternative solutions to boost economic growth, but the Labour Party remains divided over its approach towards rejoining the customs union with the European Union. According to sources close to the Prime Minister, a closer relationship with Europe is becoming increasingly prominent in his agenda, however, it appears that Nick Thomas-Symonds will not be advocating for a customs union without Keir Starmer's explicit support.
The idea of joining the customs union has long been associated with Labour Party policy. In early 2018, when Shadow Brexit Secretary, Jeremy Corbyn, was close to quitting the shadow cabinet over attempts to delay rejoining the EU, this position held sway within the party. Following two years of intense debate on Brexit, Starmer led his MPs in supporting Boris Johnson's deal, which included a customs union.
Despite its long history of support for a customs union, Labour has since moved away from this policy due to concerns about its implications for Brexit. However, with the UK facing an economic downturn and calls growing louder for rejoining the EU customs union, discussions among Labour ministers have become increasingly heated.
In recent weeks, the government has been pointing to economic analysis suggesting that joining the customs union could boost GDP by 2.2%. The Economic Adviser to the Prime Minister, Minouche Shafik, argued that a return to the customs union would be an effective way to generate growth before the next election. Several sources have confirmed informal discussions on this issue within No10.
While some cabinet ministers are urging Starmer to rejoin the customs union without delay, others are more cautious. They point out that Labour's manifesto commitment to maintaining its own trade policy means that it would be difficult for the party to agree to abandoning these rights if they were to join the EU customs union again.
Despite concerns over this issue, one thing is clear - Starmer appears unwilling to make concessions on his party's core Brexit policy. The Prime Minister has stated his commitment to the fundamental architecture of the current Brexit deal and downplayed pressure from pro-European ministers in his cabinet.
Sources close to negotiations warn that joining the customs union would require significant changes to trade policies and agreements made with other countries such as the US and India. Furthermore, there is a risk that the EU could block any UK government's attempt to rejoin due to internal domestic politics.
For now, it appears that Labour will continue its cautious approach to rejoining the customs union. However, given the increasingly dire economic situation facing the country, this stance may not remain tenable for long.