"The customs union with the United Kingdom is good for business" Financial

According to our journalists

This is not the first time that this option is discussed. When the British continue to be part of a customs union with the EU, there is free trade in goods between the UK and the EU Member States. Minimum customs formalities and absence of tariffs.

Read the latest update on Theresa May's plan.

Customs Union

"This would be good news for the Dutch business world." That's what Jeroen Lammers, director of economic affairs of the VNO-NCW employers organization, said. Lammers made the statement in February when Labor Party leader Jeremy Corbyn tabled a proposal that left the United Kingdom under the customs union. Lammers: "It's getting close to what we want, we want as smooth a business as possible, and I did not expect it to come to fruition one day in British politics."

" We can then at least move the flow of goods from one side to the other without any problem, "says Lammers. "We are not yet at the level of the internal market, but a customs union is reasonably close."

The internal market also includes the free movement of services, persons and capital. In the United Kingdom, free access for people is particularly sensitive. Many Britons think that their jobs are occupied by Poland

"If this continues, it will be very beneficial for the Dutch business world," says ING economist, Raoul Leering. "Our main export products with the British are machine building and the agri-food industry.This customs union applies to trade in goods.For services, you should organize something similar. "

Hard Brexit

In case of strong Brexit, the absence of agreement between the EU and the UK, the trade will fall back on the regime of the World Organization in which case the standard commercial rates will apply.

"The country subject to these tariffs depends on the composition of the trade," said Leering. On average, ING had already calculated that import duties between the United Kingdom and the European Union averaged 4.9%, with an average of 5.5% in the Netherlands.

Adriaan Scho ut, a European expert from Clingendael, is positive and notes that the problem of the border with Northern Ireland is being addressed: "Because trade borders remain open. otherwise insoluble. "Since Northern Ireland is part of the United Kingdom, it is very complicated to find a solution at the border between Ireland and Northern Ireland.

"There are, of course, new questions about the right to conclude trade agreements independently," according to Schout. "Will the United Kingdom accept the EU's wish to do so? developing and coordinating trade agreements by the European Commission? "

No independent trade policy

A customs union means that the British are giving up some of their sovereignty. "In this customs union, the United Kingdom is bound by the tariffs used by the EU in its trade relations with other countries," says Peter Van Elsuwege, professor of law of the Union. at the University of Ghent, out. "This means that the British can not conduct an independent trade policy.This is of course very difficult for Prime Minister May because she has repeatedly stressed that an independent trade policy of the United Kingdom was the only one. one of the most important consequences of Brexit for her. "

The EU has a variety of trade relations with neighboring countries. Relations with Norway, Liechtenstein and Iceland are the most intimate. With these countries, the EU is the European Economic Area, as these countries have access to the internal market.

With Turkey, the EU is a customs union. British plans do not mean that Turkish agreements can be copied. Hoogleaar Van Elsuwege: "Of course, every deal will have to take into account the specificity of the British release, so that a simple copy-and-paste of other models is not easy."

What models of cooperation does the EU have?

domestic market and comply with EU legislation. This applies to all EU Member States

Countries outside the EU have access to the internal market. This applies to Norway, Iceland and Liechtenstein

Countries outside the EU have access to the internal market. Industrial products are free trade. This applies to Switzerland

Political and economic cooperation with the EU is very advanced. This applies in particular to Ukraine

There is free movement of goods with the EU and a uniform trade policy. This applies to Turkey

The EU has no or few import rights between the conventioned countries. This applies, for example, to Canada and South Korea.

There are basic import tariffs for countries with which the EU has not treated any other. This applies to the rest of the world.