Business Day

May brushes off report of customs deal

Newspaper claims plan will resolve thorny issue of the Irish border, the main stumbling block in Brexit talks

- Costas Pitas and William James London

British Prime Minister Theresa May’s office has dismissed as “speculatio­n” a newspaper report that suggests an all-UK customs deal will be written into the legally binding agreement governing Britain’s withdrawal from the EU.

The Sunday Times said the plan will resolve the vexed issue of the Irish border, the main stumbling block in the Brexit talks, by avoiding the need to treat Northern Ireland differentl­y from the rest of the UK.

With just five months to go until it exits the EU, Britain’s divorce talks are at an impasse, fuelling huge uncertaint­y among businesses and causing the value of sterling to see-saw.

The EU has suggested a backstop post-Brexit customs arrangemen­t that would cover all of the UK. This could give mainland Britain some scope to set trade rules while keeping the province of Northern Ireland aligned with the EU.

Britain’s minister of housing, James Brokenshir­e, said on Sunday that there is still an issue around Northern Ireland in the Brexit talks, referring to a yet-tobe finalised backstop arrangemen­t, which would prevent a hard border between Northern Ireland and EU member Ireland if no better solution can be found. “That very much remains our focus and attention in getting that deal,” Brokenshir­e told the BBC.

Asked about the Sunday Times report, a spokespers­on at May’s office said: “This is all speculatio­n. The prime minister has been clear that we are making good progress on the future relationsh­ip and 95% of the withdrawal agreement is now settled and negotiatio­ns are ongoing.”

The Sunday Times report read that May’s cabinet will meet on Tuesday to discuss her plan and that she hopes there will be enough progress by Friday for the EU to announce a special summit.

EU diplomats said at the end of last week they doubt a deal can be completed in time for a tentativel­y scheduled summit on November 17 and 18 but it could happen a week later.

Cabinet support for any exit agreement is crucial for May, whose Conservati­ve Party is deeply divided over Brexit. Some of May’s MPs want to oust her. May’s minority government relies on the support of Northern Ireland’s Democratic Unionist Party (DUP) to get legislatio­n through parliament. The DUP has vowed to scupper any deal that treats Northern Ireland differentl­y from the rest of the UK.

If she fails to win cabinet and parliament­ary support for a deal, Britain faces the prospect of an unstructur­ed exit from the EU without any formal arrangemen­ts for trade, immigratio­n and other issues.

 ?? /Bloomberg ?? Stalled talks: Theresa May, UK prime minister, departs number 10 Downing Street on her way to parliament in London.
/Bloomberg Stalled talks: Theresa May, UK prime minister, departs number 10 Downing Street on her way to parliament in London.

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