Brexit: Theresa May's government to ask to remain in customs union
The Department for Exiting the EU will today publish what its "ambitious" plan to smooth Britain's departure as it seeks to drive the Brexit process forward by setting out more detailed visions of the future. A policy paper will propose an unspecified but time-limited "interim" period after Britain formally leaves the EU. That is expected to be 2019 and to entail also quitting Europe's free trade single market and customs union.
Britain would use the interim period to negotiate 'bold' new free trade deals
During this interim, Britain could maintain a temporary customs union with the Continent to protect trade from disruption while new permanent arrangements are put in place, the document suggests. Britain would also use the interim period to negotiate "bold" new free trade deals with other countries around the world - something it is banned from doing now as an EU member. But a government source said last night that while it wanted to agree and if possible sign deals with non-European trading partners during the interim, the UK did not expect to put such agreements into practice until the interim period ends.
Brexit trade talks in pictures: UK Ministers explore potential trade deals Tue, July 25, 2017 Latest pictures as Britain's Ministers started informal trade talks all over the world Play slideshow AFP/Getty Images 1 of 14 British Secretary of State for International Trade Liam Fox delivers remarks on 'The Future of UK Trade Policy' at the American Enterprise Institute
That was because the UK expects to be barred from implementing the new deals during the interim - although that could change depending on future negotiations with Brussels. Brexit Secretary David Davis has also spoken in the past of there always being a time lag between agreeing trade deals and putting them into effect, making the whole process difficult to complete in a short time anyway. The "future partnership" paper is not expected to say how long the interim period should be and will stress that details will be for negotiators to hammer out with Brussels.
GETTY Theresa May faces backlash after asking EU if UK can remain in customs union
Most pro-Brexit ministers have indicated they would accept an "implementation period" of around two years after Brexit to stop business facing a sudden "cliff edge" of change when Britain leaves the bloc. But there could be dismay if the UK also has to wait to gain from deals with other countries around the world. Today's document is the first of a series about how Britain envisages life after Brexit. It is seen as part of moves to push Brexit discussions onto more substantive matters than issues like our "divorce bill" which Mr Davis is arguing in Brussels cannot be finalised until the wider shape of future relations is decided.
GETTY David Davis is carrying out Brexit talks with EU’s negotiator Michel Barnier
GETTY Davis has said there is a time lag between agreeing trade deals and putting them into effect
The papers also aim to counter claims the UK is unprepared more than a year after the referendum vote to leave. Today's paper suggests routes to "the most frictionless possible trade in goods" with the EU after Brexit. During the "interim" period Britain would maintain "close association" with Europe's customs union. Thereafter the paper proposes two alternative permanent solutions, including the UK managing a new customs border with Europe, made as streamlined as possible, for example by letting traders calculate their own duty. The second option is a partnership with the EU based on "aligning" approaches to make a customs border unnecessary.
GETTY Britain could maintain a temporary customs union with the Continent to protect trade from disruption