"Valdis Dombrovskis said the bloc was "ready to engage" if the UK wanted to explore the move, an idea Labour has faced growing pressure to consider. Speaking after high-level talks with ministers including Chancellor Rachel Reeves, he also said Britain and the EU could remove "most" food checks between the UK and the bloc. He also opened the door to Britain entering the EU's 150bn ($177bn; 130bn) defence loans scheme after talks on an agreement broke down last year."
"A customs union would eliminate tariffs or taxes on some or all goods between the UK and the EU, reducing bureaucracy. But critics point out that it would also severely curtail the UK's ability to strike bespoke global trade deals, as the EU would place a common tariff on all goods from outside the customs union area and would expect the UK to conform to common standards. Labour's election manifesto ruled out signing up to the existing EU customs union."
Brussels signalled openness to discussing closer trade ties with the UK, including a possible customs union, and indicated readiness to engage if the UK wished to explore the option. The EU suggested Britain and the bloc could remove most food checks and raised the possibility of UK participation in the EU's £150bn defence loans scheme after previous talks broke down. A customs union would eliminate tariffs and reduce bureaucracy but would limit the UK's ability to negotiate independent global trade deals by applying common external tariffs and standards. Labour's manifesto rules out joining the existing customs union or rejoining the single market. Calls for a customs union have grown among Labour MPs amid concerns about growing global uncertainty.
Read at www.bbc.com
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