Cabinet & Conservative argument over “a customs union” raging, as you know, being fought via a proxy war between CBI & ERG.
Basic argument the trade-off and timing on when/if: returns from new trade deals outweigh extra friction in EU trade /1
NB they don’t exist in a customs union.
1. Cabinet split on “a” Customs Union
2. Staying in for transition
3. New Trade deals not prioritised
4. No preps for Rules of Origin
5. No changes to customs/ port infrastructure yet
6. Legislation for “a customs union”
7. Opposition moving to CU ...
Current structure of UK economy is built on existing EU borderless, frictionless trading arrangements, particularly integration into pan European integrated supply chains...
Moving away from CU will inevitably change this - but little strategic preps