The government has proposed a new ‘customs partnership’ with the EU where there is no UK-EU customs border, in the first of a series of papers on relations post-Brexit.
Under this partnership, the UK would ‘mirror’ the EU’s requirements for imports from the rest of the world.
An alternative proposal, put forward this week in the same paper, Future customs arrangements, would set up a ‘highly streamlined’ customs arrangement between the UK and EU, with customs requirements being ‘as frictionless as possible’. This would aim to continue some existing arrangements, ‘reduce or remove barriers’ through new arrangements, and ‘adopt technology-based solutions to make it easier for businesses to comply with customs procedures’.
The government also proposed a transition or interim period for the EU customs union.
UK imports and exports from the EU totalled £553bn in 2016.
Guy Lougher, partner at Pinsent Masons, said: ‘The EU has indicated that there must be agreement on three core issues—the exit bill, the rights of citizens and Ireland—before there can be negotiations on wider issues, including the shape of the UK’s future trading relationship with the EU.
‘By raising now the very important issue of the future customs arrangement between the EU and the UK, the UK government is hoping to advance discussions on this issue; whether the EU negotiators choose to engage at this stage remains to be seen.’
Josh Hardie, Confederation of British Industry (CBI) deputy director-general, said: ‘Business wants to see as frictionless a customs system as possible, with a strong emphasis on digital systems that make it easier to trade.
‘But to secure frictionless trade, negotiations on regulation, tariff and non-tariff barriers will have to take place. All efforts should be made to deliver a single-step transition, so that businesses don’t have to adapt twice.’
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