Spot the Difference
Sean O'Grady writing in The Independent argues that Jeremy Corbyn's latest Brexit proposal is just as dumb as Theresa May's.
I couldn't agree more and you can read the full article by Sean O'Grady via the following link to The Independent.
http://www.independent.co.uk/voices/jeremy-corbyn-brexit-plan-theresa-may-customs-union-eu-party-policies-a8228961.html
Jeremy Corbyn’s Brexit plan is just as fantastical as Theresa May’s
Corbyn believes that Labour will not be allowed to 'invest, upgrade and transform' our economy if we stay inside the EU single market
By Sean O’Grady - The Independent
What’s the difference between “a” customs union and “the” customs union? And between that and a “free trade area”?
The EU Customs Union is a simple thing. The EU member states all agree to abolish tariffs and quotas on free movement of goods around the EU. In return, they agree to a uniform set of external trade barriers – tariffs, quotas, and other rules – for counties outside the Customs Union. So, obviously, the members can’t then go off and do their own deals with other countries.
If Britain is outside the customs union (even if it is in a free trade zone with the EU, so the UK can export tariff-free) then the EU has to be sure that imports are genuinely British. That means agreed “rules of origin” and some checks or controls around that: a given percentage of the value of something has to be certified and audited as British – usually 40 to 60 per cent plus. That does mean some sort of “friction”, and possibly a “hard border”, including in Ireland.
So, to give a topical example, if the UK decides to allow Chinese steel into the UK freely, say to Belfast, and then tries to re-export it to Ireland, flooding the EU market. The Irish and the EU are entitled to say that the steel is not really British, and thus tariff-free, and they are allowed to add a tax to it – and to stop it at the border. A hard border they need to control.
Similarly, the EU could argue that a “British” car made with Chinese steel and American and Korean parts, for example, may not qualify as “British”. That too needs to be checked out. That’s how the customs union works.
What’s the difference between “a” customs union and “the” customs union? And between that and a “free trade area”?
The EU Customs Union is a simple thing. The EU member states all agree to abolish tariffs and quotas on free movement of goods around the EU. In return, they agree to a uniform set of external trade barriers – tariffs, quotas, and other rules – for counties outside the Customs Union. So, obviously, the members can’t then go off and do their own deals with other countries.
If Britain is outside the customs union (even if it is in a free trade zone with the EU, so the UK can export tariff-free) then the EU has to be sure that imports are genuinely British. That means agreed “rules of origin” and some checks or controls around that: a given percentage of the value of something has to be certified and audited as British – usually 40 to 60 per cent plus. That does mean some sort of “friction”, and possibly a “hard border”, including in Ireland.
So, to give a topical example, if the UK decides to allow Chinese steel into the UK freely, say to Belfast, and then tries to re-export it to Ireland, flooding the EU market. The Irish and the EU are entitled to say that the steel is not really British, and thus tariff-free, and they are allowed to add a tax to it – and to stop it at the border. A hard border they need to control.
Similarly, the EU could argue that a “British” car made with Chinese steel and American and Korean parts, for example, may not qualify as “British”. That too needs to be checked out. That’s how the customs union works.
The Big Brexit Reveal (26/02/18)
Jeremy Corbyn revealed Labour's 'new' policy on Brexit earlier today which sounds to me very much like the old policy:
- Labour wants tariff-free access to the EU Single Market but rules out joint the EU Single Market.
- Labour wants tariff-free access to the EU Customs Union but rules out joining the EU Customs Union.
Now lots of people say that the Labour leadership are trying to 'have their cake and eat it' when it comes to Brexit - much like the Conservatives.
But I would put things in more traditional Labour language because it's like demanding to have all the benefits of being a trade union member or a member of a professional association, while refusing to pay your membership dues.
