Jeremy Corbyn has announced Labour’s support of remaining part of a customs union with the EU, in a speech that has finally clarified his Brexit policy. The statement is set to increase pressure on Theresa May who is facing opposition from those within her own party, other opposition parties and now, Labour.
Corbyn gave his speech at Coventry University today, and stating that Britain needs a bespoke relationship with the EU despite not being a member state, with Labour asking for ‘full tariff-free access and a floor under existing rights, standards and protections.’
Prior to his speech, there was confusion around what exactly Labour wanted from Brexit negotiations, with a statement released about his speech today stating:
‘We would also seek to negotiate protections, clarifications or exemptions, where necessary, in relation to privatisation and public service competition directives, state aid and procurement rules and the posted workers directive.
‘We cannot be held back, inside or outside the EU, from taking the steps we need to support cutting-edge industries and local business, stop the tide of privatisation and outsourcing or prevent employers being able to import cheap agency labour from abroad to undercut existing pay and conditions.’
Shadow Brexit secretary, Sir Keir Starmer, clarified that Labour wants to be part of ‘a’ customs union, not ‘the’ customs union. However, he has stated that in practice the effect would be the same and the difference is merely technical.
So, what the hell does this all mean? We’ve brought in an actual adult to answer exactly that. Dr. Jennifer Jackson-Preece, deputy head of the European Institute at The London School of Economics and Political Science, has it all figured out:
What does remaining in a customs union actually mean?
‘A customs union means that you are part of a general free trade area where there is a common external tariff on goods coming into that area from outside of it. That means that once these goods enter the common trading area they will not get charged an additional tariff. Now, that of course protects British industry because it means that if you are going to be exporting a car from one place to another, you don’t have to worry about additional tariffs being applied to it -so it’s advantageous for, for instance, manufacturing.
‘That is different though from the single market which would also ensure that you had free movement of services and capital or investment - and also of course of people. So, what Corbyn is saying is that he wants the UK to remain inside of “a” customs union but presumably not inside the single market, because again they’re accepting that the free movement of people is a Brexit red line.
‘The other confusing element is the sense of “a” customs union as distinct from “the” customs union, there is an existing customs union and there are states who are members of the customs union that are not members of the single market, Turkey is an obvious example. Equally, it is possible to be a member of the single market but not a member of the customs union, so when the question is raised that we will be a member of “a” customs union it seems to suggest that there will have to be a separate negotiated agreement between the UK and the EU that would ensure common external tariffs post Brexit - and that would be distinct from other arrangements of that kind that already exist. It seems to suggest in some of what Corbyn is saying that he would want to combine elements of the single market with the customs union.
How is that different from what Theresa May is negotiating for?
‘Theresa May does not want to be in a customs union or a single market, so there would be no commonly agreed external tariff, instead the UK would be negotiating its own external tariffs with other trading partners it may have. So, let’s say it makes a different deal with Canada or the US, then it might set a tariff for goods entering the UK from those countries that was different from the external tariff that the EU had with respect to those countries.’
So, is what Corbyn is suggesting better or worse for us?
‘I think what Corbyn is suggesting is better in the sense that it would provide continuity in terms of planning of costs for businesses, like those involved in manufacturing. It is still problematic in the sense that the details would still have to be negotiated because Corbyn still wants something that is bespoke and there’s no guarantee that the EU would agree to Corbyn’s decision just as there’s no guarantee the EU will agree to May’s. It will still, because it is a change to existing circumstances, create some element of disruption presumably. Not everything will be the same as it is now, there will be some change and that will mean some uncertainty and change inevitably means that some people win and some people lose.’
Are the EU more likely to accept Corbyn’s policy over May’s?
‘I think it would be generally advantageous to everyone, both the UK and EU, for the UK to remain in the customs union, so that would be regarded in principle favourably. But the EU has said that the UK cannot cherry pick and what’s not clear about what Corbyn has currently said what they mean by wanting to have “a” customs union that is distinct and to combine some elements of the single market into it. The EU might regard that as another version of cherry picking which they’ve said that they don’t want. Their view is that your either in the single market or you’re out.’
So, how will all of this directly impact young people?
‘In general, the key areas that young people are most interested in are questions about the ability to work and study across the EU and that is not going to be handled by a customs union. That core interest of young people is still a question mark, the customs union doesn’t solve that problem. In order to solve that you would need to have further arrangements between the UK and EU which would be picking up elements of the single market, that might be what Corbyn is hinting at but we don’t know because he hasn’t given any details.’
Corbyn has since clarified certain details in his speech at Coventry University, stating:
‘Labour would seek a final deal that gives full access to European markets and maintains the benefits of the single market and the customs union... with no new impediments to trade and no reduction in rights, standards and protections,
‘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.’
In a move that will further destabilise Theresa May’s government, he added:
‘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.’
While we are still yet to know specific details about what Labour would negotiate were they in the position to, what we do know is that this opposition of May’s Brexit policies will cause major disruption during the House of Commons vote in spring. As tension mounts around May’s already crumbling government, it serves to bring us closer to the possibility of another general election or second referendum.
This article originally appeared on The Debrief.