Wednesday 5 July 2017

A NEW CUSTOMS UNION WITH THE EU?

There is talk of us beginning to think about proposing a new customs union with the EU (HERE). It's complicated and involves having different arrangements for goods and services. We would have a common tariff for goods but not for services. Since we have a trade surplus with the EU in services and a deficit in goods I am not sure this sounds like a good idea but it is being discussed in Whitehall apparently.

To illustrate the problems the government is having in coming to a common position another article, also in The Guardian reports the think tank Open Europe arguing that being half in and half out of the customs union is the worst possible option (HERE).

We are a year on from the vote and about ten months into Mrs May's administration and we still have no clear idea where we are headed or what we want. The government seems to change it's course every few weeks. It looks like chaos and it probably is.