Starmer Dismisses EU Customs Union Following Lammy’s Remarks

Sir Keir Starmer has firmly reiterated his stance against rejoining the European Union’s customs union, despite Deputy Prime Minister David Lammy’s recent assertions regarding the economic advantages seen by nations within such agreements.

During a podcast aired on Thursday, Lammy emphasized that the economic repercussions of Brexit have been undeniably detrimental to the UK. He noted that while rejoining the customs union is “not currently our policy,” there are examples, like Turkey, that have experienced economic growth tied to their customs union with the EU.

The Prime Minister, who has consistently underscored economic growth as his administration’s primary focus, expressed a desire to enhance trading relationships with the EU without compromising Labour’s commitments established after Brexit.

Labour’s election manifesto explicitly ruled out the possibility of re-entering the EU’s customs union, which mandates that the remaining 27 member states apply uniform tariffs on imports from outside the EU. Furthermore, the party has also stated it won’t rejoin the EU’s single market, which facilitates trade by standardizing certain regulations regarding goods and services.

In lieu of these arrangements, the government is pursuing closer economic connections through a series of supplementary agreements that address various issues, including food standards, visas for young travelers, carbon pricing, and electricity commerce.

This topic has resurfaced in political discussions recently, particularly as the Liberal Democrats advocate for a new customs union agreement with the EU. During an appearance on The News Agents podcast, Lammy remarked, “It’s self-evident that leaving the European Union badly damaged our economy, took us out of an important marketplace, and created serious friction.”

When questioned about the prospect of the UK entering a customs union with the EU, he maintained, “That’s not currently our policy, that’s not currently where we are.” Nevertheless, he pointed out that Turkey, benefiting from its customs union with the EU, is reportedly experiencing economic growth.

Turkey’s arrangement, which excludes agricultural products and services, lessens the need for proof of the origin of many goods traded with the EU, a significant source of trade tension for the UK since Brexit. This model has previously been proposed as a more feasible means of strengthening ties compared to rejoining the customs union outright.

However, it is important to note that this framework significantly limits Turkey’s capacity to engage in an independent trade policy, a crucial promise made by proponents of Brexit.

In response to Lammy’s comments on Friday, Sir Keir stated, “The position that we are taking has been clearly set out in the manifesto, and then we’ve been following it.” He asserted that Labour has fundamentally redefined the UK’s relationship with Europe since assuming office last year.

Earlier, a spokesperson from Downing Street downplayed Lammy’s statements, affirming that the government aims to strengthen ties while adhering to established red lines. The spokesperson added that Labour is focused on promoting growth through “open trading relationships,” citing trade agreements with India and the United States as benefits stemming from Brexit.

The Liberal Democrats have capitalized on Lammy’s comments, urging him to align with their position next week as they seek to initiate a vote addressing the customs union matter. Al Pinkerton, the party’s Europe spokesperson, remarked, “The penny is dropping that a customs union is the best way to fix the economic problems plaguing Britain. It’s time for Lammy to put his money where his mouth is.”