When we leave the European Union, we will also leave the EU’s Single Market and Customs Union. These are the core elements of EU membership, and so seeking to remain in either would not be a genuine implementation of the referendum result on June 23rd, 2016.
One of the reasons why people voted to leave the EU was so that the UK could take back control of its trade policy and make its own free trade deals with countries around the world. Remaining inside the Customs Union would either severely compromise or totally eliminate that ability, and effectively allow the EU to dictate our trade policy.
This is why the only country of significant size with such an arrangement with the EU is Turkey. I do not believe this ‘Turkish option’ to be appropriate for the British economy.
There are a number of solutions available to ensure that trade with the EU remains as frictionless as possible after Brexit. The UK has suggested two possibilities for our customs relationship with the EU after Brexit. One option would effectively have the UK and EU implement each other’s customs arrangements at their own borders, removing the need for checks at the Irish border or at Dover.
Another option would harness technological advances and use common-sense mutual agreements to eliminate the need for a hard border. This is a plausible option – European Parliament, for example, has been receptive to the idea of technological solutions; and we can learn from examples like the border between the EU and Switzerland, which is also outside the Customs Union.
I am confident, therefore, that we will agree a new customs relationship with the EU that achieves our common goals of maintaining our close trade ties and protecting the Good Friday Agreement in Northern Ireland, while also allowing us to forge new free trade agreements around the world.