Brexit update: The approach to the Customs Union outlined | Hudson McKenzie

Brexit update: The approach to the Customs Union outlined

May 3, 2018 | Latest Thinking, News

What exactly are the two ultimate approaches to the Customs Union, post-Brexit?

The recent Brexit news surrounding the ongoing negotiations have been spotlighted upon how Britain will handle the current Customs Union situation, in favour of a ‘soft’ rather than ‘hard’ Brexit. However, the EU is skeptical that either of the proposals will actually work.

The two options are as follows:

  • New Customs Partnership (NCP)

In favour of a ‘soft’ Brexit, one possibly consideration is for a New Customs Partnership (NCP) to be dealt. This would mean that the UK would be acting on behalf of the EU when imports arrive from overseas globally. To do so, the UK would thus have to apply the EU’s own tariffs and rules accordingly.

  • Maximum facilitation model

The second possible option would be to have a “frictionless trade” with Europe, in which would mean that the UK would also have to abide by the rules of the Single Market. By having a frictionless customs border, the UK would not only avoid friction with the EU but would also be able to strike new trade deals with other countries.  However, critics argue that this would be impossible without the UK being a member of the Single Market itself, following from Brexit.

Therefore, only time will tell which option the British parliament shall opt for in the lead up to Brexit.

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