Jeremy Corbyn has called for Britain to join a permanent customs union with the European Union after Brexit, urging Conservative MPs to vote with Labour on the issue. In his first major speech on Brexit for a year, the Labour leader said a customs union with the EU would help to avoid a hard border in Ireland.
"We have long argued that a customs union is a viable option for the final deal. So Labour would seek to negotiate a new comprehensive UK-EU customs union to ensure that there are no tariffs with Europe and to help avoid any need for a hard border in Northern Ireland, " he said.
Mr Corbyn acknowledged that a customs union with the EU would prevent Britain from negotiating independent trade deals with other countries. But he insisted that Britain must have a say in negotiating future EU trade deals.
“A new customs arrangement would depend on Britain being able to negotiate agreement of new trade deals in our national interest. Labour would not countenance a deal that left Britain as a passive recipient of rules decided elsewhere by others. That would mean ending up as mere rule takers,” he said.
Single market
The Labour leader resisted calls from some of his MPs for Britain to remain in the single market, arguing instead for “a new and strong relationship” with it. He said it should include full tariff-free access and a floor under existing rights, standards and protections and should allow a Labour government to intervene to support industry.
Labour’s shift in policy follows the tabling by pro-European Conservatives of an amendment to a trade Bill, calling for Britain to join a customs union with the EU after Brexit. Mr Corbyn urged such rebels, along with MPs in other opposition parties, to join his party in voting against the government.
“I appeal to MPs of all parties, prepared to put the people’s interests before ideological fantasies, to join us in supporting the option of a new UK customs union with the EU, that would give us a say in future trade deals. Labour respects the result of the referendum and Britain is leaving the EU. But we will not support any Tory deal that would do lasting damage to jobs, rights and living standards,” he said.
Prime minister Theresa May has ruled out remaining in a customs union with the EU after Brexit because it would prevent Britain from negotiating new bilateral trade deals around the world. International trade secretary Liam Fox on Monday accused Mr Corbyn of betraying Labour voters who backed Brexit in the 2016 referendum.
‘Playing politics’
“This is a cynical attempt by Labour to try and frustrate the Brexit process and play politics with our country’s future – all the while, betraying millions of Labour voters. Labour’s confused policy would be bad for jobs and wages, it would leave us unable to sign up to comprehensive free trade deals, and it doesn’t respect the result of the referendum,” he said.
The Labour leader won praise from business groups, with the Confederation of British Industry saying his proposal would put jobs and living standards first. The Evening Standard, edited by former Conservative chancellor George Osborne, said Mr Corbyn had revealed himself as a pragmatist on Brexit.
“The Labour leader has, with the smallest of nudges, manoeuvred himself into a more pro-business, pro-free trade European policy than the Tory government. He has also opened up the looming prospect of the prime minister suffering a huge defeat in the Commons, as the number of Tory MPs who agree with remaining in a customs union grows each week,” the paper said.
