A customs union eliminates or reduces internal customs barriers to trade and imposes a common external tariff on imports from nonmember countries. While some pieces of the Brexit puzzle are starting to become clearer, the government’s view on the customs union remains murky. Mrs. May’s speech to her Conservative Party conference in October would seem to make British membership of the customs union difficult. On the other hand, there are important economic advantages of remaining in the customs union. Yet, Mrs. May has said a decision on the customs union may not be a “binary choice.” U.K. officials and lawmakers are exploring the options.

Source: Wall Street Journal January 12, 2017 22:30 UTC