The UK plans to remain in the EU’s customs union until December 2021, according to a new
‘backstop’ proposal unveiled by Teresa May, aimed at avoiding a hard border between Northern Ireland and the Republic.
After a dramatic Thursday morning (7 June) in Westminster, during
which Brexit Secretary David Davis held two crisis meetings with May and
is widely believed to have threatened to resign, the government
published a five-page paper setting out a ‘temporary customs
arrangement’.
The proposal would mean a one-year extension to the 21-month
transition period running from the moment it formally leaves the bloc
next March until the end of 2020, which the UK has already agreed with
the EU.
Under the proposal, UK- EU trade would be free of any tariffs, quotas, rules of origin and customs.
However, the UK would be outside the scope of the EU’s Common
Commercial Policy, apart from applying the bloc’s common external
tariff, and would be able to agree free trade deals with third
countries.
In a bid to pacify Brexiteers, the proposal makes clear that it
should be “time-limited” until a new EU-UK trade deal is in place.
Note EU-Digest: obviously it is not sure the EU will buy into that?
Read more: UK plans to stay in customs union until December 2021 under new ‘backstop’ – EURACTIV.com