Britain’s May tells Abe: Japanese companies welcome after Brexit

Britain’s opposition Labour party on Monday argued that Britain should remain in a customs union with the EU, an option ruled out by Theresa May’s government.

He said today: “We can’t possibly imagine a situation in which we would accept cherry-picking”.

While May and her ministers say they plan to negotiate the best access possible to the EU, Brussels says Britain is on course to run into trade barriers.

The shift in Labour’s policy stance comes following an intense campaign by members calling for a more radical stance on the issue to enable the party deal with apparently intractable matters such avoiding a hard border between Northern Ireland and the Republic of Ireland. That means agreed “rules of origin” and some checks or controls around that: a given percentage of the value of something has to be certified and audited as British – usually 40 to 60 per cent plus.

Both sides had hoped an interim accord in December on how much Britain would pay Brussels and how expatriate citizens’ rights would be protected would lead to a quick agreement by next month on a transition period, during which Britain would remain bound by European Union rules, giving businesses time to adjust. Will this set the tone for Tory rebels to defeat Theresa May and challenge her for an election before March 2019?

A spokesman for the European Commission declined to comment but one diplomat said on condition of anonymity: “Corbyn’s speech is most welcome but he can not expect the EU single market to become the cherry on his “new cake”. While a customs union is about what happens at the borders of the EU, the single market is about free movement of goods and services within the European Union.

Backbencher Sarah Wollaston told Newsnight there was a “huge” majority for in Parliament for staying in a customs union, yet fellow Remainer Jonathan Djanogly yesterday cast doubt on the customs bill amendment, saying it was only meant to spark debate.

Britain’s trade minister Liam Fox, a strong supporter of Brexit, said on Tuesday staying in a customs union would be “a sellout”. “Everybody is going to apply with the same rules, we can not accept the risk of regulatory divergence during transition”, Barnier said.

Adding to the pressure, Tusk holds talks with May in London on Thursday, on the eve of a major speech she plans to give which officials say will set out her government’s vision of future relations with the EU.

Leadsom, who is overseeing the passage of Brexit legislation through the House of Commons, attends Cabinet but was not part of the sub-committee that met at the prime minister’s country residence Chequers last week to thrash out the U.K.’s position on its future relationship with the European Union.

The Irish government said Wednesday that the European Union draft contains “the necessary legal provision to implement the backstop” that would avoid a hard border between Britain’s territory and the European Union member state. With the Conservatives and Labour going neck and neck in the latest polls and the public opinion slowly shifting in favour of a “softer” Brexit, Labour sees an opening to dethrone the Tories. Stephen Martin, the director general of the Institute of Directors, said Labour had “widened the debate” and manufacturers would be particularly pleased that a customs union was staying on the table.

“The truth is more down to earth and it’s in our hands”.