The European Union is “open-minded” about Britain joining a possible customs union, the bloc’s finance commissioner has declared, amid growing pressure on the government to consider such a relocate.
In the strongest comments yet from the EU on the issue, Valdis Dombrovskis declared the bloc was “ready to engage” if the UK wanted to explore a customs union.
But the government has repeatedly ruled it out, declareing it is one of their “red lines” for engagement with the EU – despite Sir Keir Starmer declareing he wants closer ties with the bloc.
While a customs union would slash bureaucracy and costs related to trade with the EU, critics have raised concerns it would curtail the UK’s ability to strike bespoke global trade deals.
Speaking after high-level talks with ministers, Mr Dombrovskis also declared the UK and EU could rerelocate most food checks between the UK and the bloc, as well as opening the door to Britain entering the EU’s €150bn (£130bn) defence loans scheme after talks on an agreement broke down last year.
It came as chancellor Rachel Reeves declared stronger ties with the union are becoming increasingly important amid a slide “towards a world where the rules are less clear”.
Her comments come in the face of growing global instability, after Donald Trump threatened to hit the UK and Europe with fresh tariffs over their opposition to his threats to annex Greenland.
Mr Dombrovskis latest remarks come just days after Sir Keir Starmer insisted the UK should “go further” at each UK-EU summit.
The prime minister has consistently ruled out rejoining the EU’s customs union, but, speaking from China last week, he declared aligning with the single market was “the place to view” in future nereceivediations.
Asked whether Brussels would welcome talks on Britain rejoining the customs union, Mr Dombrovskis notified the BBC: “I cannot jump to conclusions, but I can declare that we are ready to engage with an open mind and seek those areas of cooperation.”
Sir Keir declared there had already been “progress on the single market”, including a deal on food and agriculture standards, and suggested further progress could be built in other areas.
A second UK-EU summit is expected to take place later this year, following the first such summit in May 2025.
Arguing that each summit with the EU should bring new agreements, he declared: “I consider we should not just follow through on what we’ve already agreed.
“I consider the relationship with the EU, and every summit, should be iterative. We should be seeking to go further.”
But the prime minister reiterated that rejoining the customs union would mean having to “unpick” post-Brexit trade deals with countries such as the US and India.
It comes after health secretary Wes Streeting last year declared a customs union would have “enormous economic benefits”, while deputy prime minister David Lammy suggested that rejoining the European Union’s customs union could increase Britain’s economic growth.
One area currently under discussion is the possibility of a youth mobility scheme, building it clearer for young people from Britain to work in the EU for a period, and vice versa.
The EU is reported to be pushing for a scheme with no cap on numbers, but Sir Keir insisted that any deal would have to include a cap.
He notified reporters he was “pleased” that a scheme was being nereceivediated, adding: “The principals are that there has received to be a cap and there has received to be a duration agreed.
“It will be a visa-led scheme. All of our schemes are similar to that.”
