Britain may seek ‘temporary’ customs union with EU

LONDON — Britain might seek to remain in a customs union with the European Union for a time to avoid border chaos after leaving the bloc, the government’s Brexit department said Tuesday.

The Department for Exiting the European Union said there could be “a temporary customs union between the U.K. and the EU” to help businesses make the transition to life outside the EU. 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. Alternately, it suggested that “a highly streamlined customs arrangement” could be set up, using technology to ease border procedures.

The proposal — one of a series intended to disprove allegations that Britain is underprepared for Brexit — 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.

Some British businesses have accused the government of being vague about whether there will be economic barriers with the EU after Brexit in March 2019. The persistent uncertainty — 14 months after Britain voted to leave the EU — is weighing on the economy.

Trade Secretary Liam Fox and Treasury chief Philip Hammond wrote in the Sunday Telegraph that in 2019 Britain will leave both the EU’s single market in goods and services and its customs union.

The single market ensures tariff-less trade in goods and services and is linked closely by the EU with other rights, such as the right of EU citizens to cross borders. The customs union allows goods to move within the EU without checks, but also imposes tariffs on imports from outside the EU. That would prevent Britain striking new free trade deals while it remains inside the arrangement.

The British proposal says the United Kingdom should be free to negotiate new trade relationships during the transition period, something EU officials are likely to find problematic. Jill Lawless is an Associated Press writer.