Explainer: Pros and cons of a customs union for Brexit Britain

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Explainer: Pros and cons of a customs union for Brexit Britain
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The British parliament will on Monday hold a second round of indicative votes on...

BRUSSELS - The British parliament will on Monday hold a second round of indicative votes on various Brexit alternatives, and the customs union could emerge as a preferred solution for lawmakers who have rejected Prime Minister Theresa May’s deal.

In the case of Turkey, the arrangement does not include agricultural or coal and steel products. Other goods can circulate without paying customs duties and the whole zone applies the same import duties for products from third countries - such as the 10 percent rate for imported cars. Turkey, the junior partner in the customs union with the EU, does face a challenge. The EU’s recent free trade deal with Japan opens Turkey up to inbound Japanese cars without providing reciprocal access for Turkish products to Japan’s market.

However, Turkey is free is in those areas not covered by the customs union. So, following their agreement on goods, Turkey and South Korea also struck in 2015 a bilateral deal covering services and investment. So far the EU has limited deals on road transport access to countries that accept free movement of people, such as Norway and Switzerland.

It would need to go beyond the EU-Turkey union to cover agricultural produce, notably dairy and beef. Britain would then find itself bound to retain EU measures to prevent diseases, pests and contaminants in plants and animals.

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