British prime minister Theresa May’s Brexit advisers are secretly considering whether Britain could strike a customs union deal covering trade in goods with the EU, a move that would severely limit the UK’s ability to strike out on its own. Downing Street insisted on Thursday evening it was not considering the customs union plan, which would be deeply controversial with Brexiters in the ruling Conservative party. It would represent a significant climbdown for Mrs May, who has always said the UK would leave the EU customs union - a type of agreement that refers only to goods. But London’s bargaining power could be limited, since countries with EU deals would already have access to the UK goods markets via the customs union. George Osborne, former chancellor, urged Mrs May to remain part of a customs union on Thursday, saying the sums “don’t stack up”.

Source: The Irish Times February 01, 2018 21:45 UTC