PM urged to drop maximum facilitation customs model
THERESA May has been urged to drop the “max fac” customs model, with business leaders indicating they would prefer an alternative approach even if it would take longer to implement.
The Prime Minister will gather her Cabinet at Chequers on Friday to discuss the post-Brexit relationship it wants with the EU and a decision on the future customs model is one of the main flashpoints.
Brexiteers favour the maximum facilitation – or “max fac” – model, which would use technology and streamlined systems to ease disruption at ports and the Irish border.
Mrs May was thought to favour a new “customs partnership” which would involve the UK effectively collecting tariffs for the EU for goods destined for the bloc, although a new “third way” compromise is reportedly under consideration.
A survey of almost 800 business leaders by the Institute of Directors (IoD) found just 24% backed the “max fac” solution, with 54% calling for the Government to instead propose “unprecedented options” that could negate the need for new customs processes even if they take longer to put in place.
The 790 respondents surveyed by the bosses’ organisation also said minimising regulatory divergence from the EU was a priority.
Some 55% of those surveyed said minimising divergence from EU rules to maintain as much of the existing market access as possible was their most important priority, while 15% favoured focusing on standards tailored to domestic needs, and 12% backed aligning with other standardsetters such as the US.
The survey was carried out between May 9 and 24 but its results have been published as ministers prepare to thrash out the Government’s position on Friday.
IoD director general Stephen Martin said: “As the Government discusses options for post-Brexit customs this week, they should take note of the strong preference among business leaders for a solution which keeps trade friction to an absolute minimum.
“Pursuing an option that relies on facilitations and simplifications doesn’t seem to cut it for our members. In short, ‘max fac’ is not the favoured route for keeping trade in full flow.
“We’re in uncharted territory here, and so far we have no clarity on what customs position the UK will adopt.
“What is clear, however, is that the firms who are actually responsible for driving forward ‘Global Britain’ want to see an outcome that avoids making trade with our biggest market more difficult, even if that takes longer to put in place.
“They want to see the Prime Minister leading her Cabinet out at the end of this week with an agreed position, and then pushing on with negotiations with the EU.”