Sir Keir Starmer has been told to “fire the starting gun” on creating a new customs unions with the EU in order to kickstart the UK economy.
Amid fears Donald Trump will enact tariffs on the UK and EU, Liberal Democrat leader Sir Ed Davey has called on the Prime Minister to create a new customs union to “strengthen our hand”.
On Monday, the Prime Minister will join European Council leaders at an informal retreat ahead of an EU-UK summit later this year.
“The Chancellor is tying herself in knots trying to think up new ways to grow our economy,” Sir Ed told the BBC.
“But there’s a solution right under her nose: a new UK-EU customs union deal that boosts trade for British businesses and raises vital tax revenue for our public services.”
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Sir Keir Starmer must “fire the starting gun” on creating a new customs union with the EU, the Prime Minister has been told ahead of a meeting with European leaders.
Such a move will put “rocket boosters” on the UK economy and will “strengthen our hand” against Donald Trump’s US, which is threatening tariffs against trade partners, Liberal Democrat leader Sir Ed Davey told the BBC.
On Monday, the Prime Minister will join European Council leaders at an informal retreat ahead of an EU-UK summit later this year.
The focus of the dinner he will attend is expected to be defence co-operation.
But the Lib Dems have called for him to begin talks with the trade bloc on deeper ties.
The Government has ruled out joining the customs union or single market, declaring them both “red lines” in its negotiations with European leaders.
However, it has left open the possibility of joining a continent-wide trade deal called the Pan-Euro-Mediterranean (PEM) convention, as Sir Keir continues with his aim to “reset” the UK-EU relationship.
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