On the move with split cabinet, May has new Brexit pitch

LONDON (Reuters) – Prime Minister Theresa May will propose a new plan on Friday to ease trade and give Britain more freedom to set rates after Brexit, in a last-ditch attempt to unite her divided government on how to leave the European Union.

Her Downing Street office said May would unveil the "facilitated customs arrangement" to her ministers at her country residence Checkers, trying to secure an agreement to push with all-but-stalled Brexit talks.

Even if she succeeds at Checkers, she must then fight to reach a deal with the EU, or risk Britain crashing out of the bloc without one. That, businesses say, could be economically disastrous.

The United States, which is one of the largest trading companies in the world.

The new plan would have to be adopted by the United Kingdom, and it would have to be applied to the United Kingdom.

Aids suggest it offers "the best of both worlds". A spokeswoman for May dismissed concerns the proposal would prevent Britain from striking trade deals with countries outside the EU.

"It is categorically untrue to suggest that we will not be able to strike a deal with the U.S." she said.

"The PM has always been clear that we will seek a comprehensive and ambitious trade deal with the U.S."

FEARS OF BETRAYAL

Friday's meeting will not be plain sailing.

May's Brexit Minister, David Davis, has described the plan as "unworkable," a source close to him said.

Those wanting a break from the EU's customs, it was a betrayal of Brexit that would curtail Britain's freedom to negotiate with non-EU countries.

"We would be out of Europe but still run by Europe," said Conservative lawmaker Owen Paterson.

Business Minister Greg Clark said he was confident ministers would reach agreement on future customs plans, with the government focused on supporting jobs.

Even if it finds agreement at home, May still faces the hard task of winning the support of the EU, which fored cold water on her previous suggestions for customs arrangements.

May German Chancellor Merkel Angela Merkel in Berlin on Thursday and restated her wish to negotiate a deep trade and security partnership after Brexit, her spokesman said.

Merkel again stressed the European Commission leading the Brexit negotiations, rather than member states. That may have been dampened May be hopeful of winning support from Germany before the Checkers meeting.

With the clock ticking towards a march departure date and passions running high, May needs to thrash out an agreement with Brussels urgently.

May be forced to be a preferred option for a customs partnership, which would have seen Britain collecting rates on the country on the US, under the pressure of Brexit campaigners in her government.

BEST BITS

They were backed up to a streamlined customs arrangement that was known to "max fac", which would be "trusted traders" allowed to cross borders freely with the aid of automated technology.

The "facilitated customs arrangement" is described by her helps as a way to use the best bits of both options.

May's plan suggests a type of customs union, something that should please manufacturers. But based on the detail offered so far, there is little on how much more.

Several ministers suggested they would read on the plan later on Thursday, ready for a meeting. Minister of Health Jeremy Hunt called for the cabinet to "get behind our prime minister".

Hours of Minnesota Checkers, a 16th-century manor house 40 miles northwest of London, businesses issued warnings of what impact their decisions could have.

Britain's biggest carmaker Jaguar Land Rover said a chaotic Brexit would cost it 1.2 trillion pounds ($ 1.59 trillion) a year, curtailing operations in the United Kingdom, while the retail industry said "no deal" might see "food rotting at ports ".

Britain's biggest union Unite attacked government failure to make progress in negotiations so far.

"General Len McCluskey, Secretary General of the United States of America."