Labour Debates Rejoining EU Customs Union Amidst Calls for Stronger Integration
Wes Streeting, a prominent Labour figure, has advocated for a deeper EU trading relationship, suggesting that Labour could adopt a distinctive position by rejoining the EU customs union. He argued that this move would help Labour better counter Nigel Farage at the next general election and aligns with the views of many Labour MPs and voters who favor stronger ties with the European Union.
Recent YouGov polling supports this perspective, showing that 80% of Labour's 2024 voters back negotiating a customs union with the EU, and 73% support talks to rejoin the EU entirely. Within Labour, a growing bloc, including some senior cabinet ministers, believes that stronger EU ties might boost economic growth and criticizes the government's current approach to the EU as lacking ambition.
Despite these internal pressures, Number 10 has ruled out returning to the customs union, single market, or freedom of movement, aiming to preserve independent free trade deals. However, some insiders suggest that this stance may be outdated if pressures continue to rise.
The UK’s broader trade relations highlight challenges: while a UK-US tech prosperity deal has been paused, baseline tariffs on UK exports to the US stand at 10%, compared to 15% on exports to the EU. Trade agreements with India and other countries are seen as having limited growth impact.
Several obstacles remain to closer EU ties, including difficulties negotiating with Brussels, which imposes high demands. Progress on issues such as a defence fund has faced delays, and youth mobility talks remain unresolved, with Brussels advocating for an uncapped scheme and lower fees.
Within Labour, some MPs view the existing manifesto red lines against the customs union, the single market, and freedom of movement as outdated, fueling an ongoing debate about moving closer to EU integration before the next election.
