Nick Boles and Lucy Powell: Compromise on customs is key to parties’ Brexit talks

Lucy Powell and Nick Boles
Nick Boles|Lucy Powell11 April 2019

The talks between the Government and the Labour Opposition over Brexit were never going to be easy. If anything, it’s remarkable they have made so much progress in just 10 days. Different ideas about Britain’s future customs arrangements remain the biggest stumbling block. Reconciling Conservative ambitions for the UK to be able to strike independent free trade deals with Labour’s commitment to a permanent customs union with the EU is genuinely difficult. But we believe there is a way.

Last month, we constructed a cross-party compromise called Common Market 2.0. Although it did not achieve a majority in the indicative votes, we succeeded in getting the support of Labour, the SNP, Plaid Cymru and a wide range of Conservatives including Brexiteers George Eustice and Andrew Percy. Crucial to this alliance was the compromise on future customs arrangements.

We found one thing almost everyone can agree on is that it is not currently possible to maintain frictionless trade and avoid a hard border on the island of Ireland without the UK being in the same customs territory as the Republic of Ireland and the rest of the EU.

The EU has made a commitment to work with Britain to develop alternative arrangements that would let us pursue an independent trade policy without the need for customs checks at the border. But nobody believes these alternative arrangements will be ready for full implementation within the next few years. The fact that Liam Fox, the International Trade Secretary, has supported the PM’s deal and its Irish backstop suggests even he accepts the UK will have to stay in something that looks very like a customs union for the time being.

It is this elongated timescale that provides the solution to the negotiators’ customs conundrum. Both parties should agree that the UK will be in a comprehensive customs arrangement, including a common external tariff, alignment with the Union Customs Code, and an agreement on commercial policy, at least until alternative arrangements have been agreed with the EU.

At the next election (due by June 2022) Labour would be able to promise a permanent customs union with the EU in which they would try to negotiate a say for the UK on future trade deals. At the same election, Theresa May’s successor as Conservative leader could pledge to pursue an independent trade policy for Britain if and when these alternative arrangements have come on stream.

In short, both parties can agree to park their disagreement about the best long-term customs arrangement until these choices become technologically feasible and politically germane.

The best compromises are those that allow people to make progress without sacrificing their long-term goals or fundamental beliefs.

A staged evolution of the UK’s customs arrangements offers just such a solution. Our political leaders should grab it.

  • Lucy Powell is the Labour MP for Manchester Central. Nick Boles is the Independent Progressive Conservative MP for Grantham and Stamford.