UK says it may seek ‘temporary’ customs union with European Union

Britain on Tuesday gave its most detailed indication yet of how its future trade with the European Union might work after Brexit, laying out proposals to replace membership in the bloc’s customs union with new mechanisms designed to allow “frictionless” trade to continue.

The plans were dismissed as “a fantasy” by one senior EU official. And anti-Brexit campaigners in Britain said they would merely replace EU regulations with new ones that could be even more onerous.

The Department for Exiting the European Union said there could be “a temporary customs union between the U.K. and the EU” to avoid border chaos when Britain officially leaves the bloc in March 2019.

Brexit Secretary David Davis said the transition period could last about two years.

In the long term, the department said, a “customs partnership” could eliminate the need for a border for goods traveling between Britain and the EU. The partnership would see Britain impose the exact same requirements as the EU on goods from outside the bloc destined for member states.

Alternately, it suggested “a highly streamlined customs arrangement” could be set up, using technology to ease border procedures.

The proposals drew a cool response from Brussels.

“To be in & out of the Customs Union & ‘invisible borders’ is a fantasy,” tweeted Guy Verhofstadt, the European Parliament’s Brexit coordinator.