(Bloomberg) -- No one in Prime Minister Theresa May’s Cabinet is showing any signs of changing their mind on the U.K.’s best option for post-Brexit customs arrangements with the European Union, a senior government official said.
The official, who declined to be identified discussing private matters, said the impasse needs to be resolved by next month’s EU summit. But there’s no sign yet of that happening, with the well-flagged problems with each solution still in need of resolution.
The official said that it’s an open possibility the government will seek to extend customs arrangements with the EU beyond a transition period that’s due to last from next March to December 2020, and then go for the option favored by Brexit hardliners rather than May herself.
May’s 11-strong Brexit war cabinet split 6-5 three weeks ago on the two options for Britain’s future trading relationship with the bloc.
May was in the minority preferring a so-called customs partnership in which Britain levies tariffs at EU rates, providing refunds for goods destined to British markets if U.K. tariffs are lower. The other option, dubbed maximum facilitation, would use trusted trader programs and technology.
With the EU rejecting both options, and the Cabinet acknowledging flaws in both, May tasked two groups of three ministers to try to improve on each of them.
Deadlock
But a prerequisite of of seeking to extend customs arrangements before adopting a version of maximum facilitation is to secure cabinet agreement, and also to allay EU concerns that such an arrangement wouldn’t open up the bloc to an influx of goods that don’t meet European standards.
The premier has tasked Northern Ireland Secretary Karen Bradley and Business Secretary Greg Clark to work to improve the maximum facilitation plan in conjunction with Brexit Secretary David Davis, the only minister of the three to support it.
Environment Secretary Michael Gove and Trade Secretary Liam Fox are focusing on the partnership plan with May’s de facto deputy, Cabinet Office Minister David Lidington, himself the only supporter of the option of the three.
To contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.net
To contact the editors responsible for this story: Flavia Krause-Jackson at fjackson@bloomberg.net, Stuart Biggs
©2018 Bloomberg L.P.
Advertisement