The Labour party now supports Britain remaining in a customs union after Brexit. That is also the view of at least 10 Conservative MPs, such as Anna Soubry and Nicky Morgan, who have put an amendment to this effect in the Commons. Theresa May’s government therefore faces a real danger of being defeated on this issue by a cross-party coalition. It is easy to see why continued membership of a customs union appears so attractive. It would seem to allow frictionless trade without committing Britain to free movement, budget payments to the European Union, or supervision by the European court of justice (ECJ), and no hard border in Northern Ireland.
The only major country outside the EU with which it has a customs arrangement is Turkey. This was proposed when it was believed Turkey might eventually join the EU. It is unclear whether this would be available for a country that had decided to leave Europe. But even if it were, the deal is highly disadvantageous to Turkey, and would be even more so to Britain.
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