EU warns UK on impact of exiting customs unions

EU warns UK on impact of exiting customs unions

Barnier reiterated that Britain can not enjoy tariff and barrier-free access with the EU outside the single market and customs union.

In the talks with Mrs May and his British counterpart David Davis, Mr Barnier made clear any British proposal would have respect the rules of the block.

Putting the issue to bed, a Downing Street source said: "We must be free to sign trade deals with the rest of the world.so it is not our policy stay in the Customs Union".

December 31, 2020 - The EU's proposed transition period ends, with Britain free to implement its own trade deals with other countries, and free of all obligations to the Union.

Hardliners warn that a customs arrangement could hamper Britain concluding trade deals with other countries.

Speaking in Downing Street, Mr Barnier said "the time had come" for the United Kingdom to choose what it wanted after Brexit.

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"In the approach the European Union took to the TTIP negotiations with the U.S. the European Union pursued a trade agreement which included provision for financial services", Bailey, who heads up the Financial Conduct Authority, said.

On Sunday night, May categorically ruled out Britain staying in either the current customs union or a new customs union with the EU after Brexit.

It follows a recent bout of infighting within the Conservative Party over whether or not Britain should retain a customs union with the EU beyond 2019.

Ahead of the meeting Barnier had warned the UK Government there was "not a minute to lose" in efforts to achieve a Brexit deal.

A spokesperson for the prime minister added on Monday that the government was instead looking at agreeing either a "highly streamlined customs arrangement" or "a new customs partnership" with the EU.

Under the agreement of European Union, all countries had a common external tariff on goods imported to EU.

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Ms Rudd attempted to clear up some of that confusion over customs arrangements, with the International Trade Secretary Liam Fox last week claiming a customs union was "not possible" despite Mrs May's claim to be keeping an "open mind" in her Lancaster House speech past year.

The customs debate comes at the start of a crucial week of negotiations.

Members of the Cabinet Brexit sub-committee will meet on Wednesday and then again on Thursday as they seek to thrash out an agreement on thorny issues like customs arrangements with the remaining EU27.

But he added: "If you look at Mrs May, it seems to be quite clear she does it because it's her duty to do it". May wants to resist European Union proposals for these people to be entitled to settle permanently in the UK. "It's not a matter of scaremongering to get negotiating advantage", he said. People will be free to live and work here. This is what I think these critics are trying to do.

"The Prime Minister thanked Michel Barnier for the role he played in that and they agreed it was in the interests of both our sides to move quickly on the implementation period and to agree a positive future relationship".

The chairman of the Commons Exiting the EU Committee, Hilary Benn, said further detail was still needed from ministers if the terms of a future deal with Brussels are to be agreed by October as hoped.

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