Explainer: Pros and cons of a customs union for Brexit Britain

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The British parliament will on Monday hold a second round of indicative votes on various Brexit alternatives, and the customs union could emerge ...

BRUSSELS: The British parliament will on Monday hold a second round of indicative votes on various Brexit alternatives, and the customs union could emerge as a preferred solution for lawmakers who have rejected Prime Minister Theresa May's deal.

Unlike a free trade deal, a customs union removes the need for complex rules to determine whether a good is really from a given partner - such as a machine with multiple imported components. Such"rules of origin" can prove costly and time-consuming for exporters.Being a member of a customs union limits, but does not prevent the separate participants from striking their own free trade agreements with other countries.

Turkey did for example begin a free trade deal covering goods with South Korea in 2013, two years after an EU-South Korea came into effect. It remains in exploratory talks with Canada, whose deal with the EU began in 2017. Turkish trucks laden with goods bound for the European Union still need to show documents including export declarations and invoices and transport permits for each EU country through which the truck plans to travel.

A customs union would ease the flow of goods across the border between Ireland and Northern Ireland, but would appear unlikely on its own to prevent a hard border.

 

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