Labour Faces Internal Debate Over Rejoining EU Customs Union Amid Government Stalemate
Wes Streeting has suggested that Labour adopting a stance in favor of rejoining a customs union with the EU could offer the party a distinctive political message, particularly in opposition to Nigel Farage. Speaking to the Observer, Streeting advocated for a deeper trading relationship with the EU.
Polling by YouGov indicates strong support among Labour voters, with 80% backing negotiations to rejoin a customs union in 2024 and 73% supporting broader talks to rejoin the EU.
Behind the scenes, several senior Labour figures, including certain cabinet ministers, privately support closer ties with the EU. Deputy Prime Minister David Lammy described the goal of rejoining a customs union as both desirable and beneficial, with specific reference to Turkey's position.
However, the current government maintains strict manifesto commitments against returning to the customs union, single market, or freedom of movement until the next election. Some Labour MPs view these positions as outdated and out of step with voter preferences.
An internal briefing within Labour suggests that a future leadership more favorable to the EU could emerge, potentially shifting party policy away from the current hardline stance.
The broader economic context compounds these debates. The recently suspended US “tech prosperity deal,” alongside a UK-US free trade deal featuring a 10% baseline tariff (compared with 15% for the EU), and trade agreements with India, which are viewed as having limited impact on economic growth, have been characterized by a senior business figure as largely performative.
Negotiations with Brussels are encountering substantial challenges. Talks over defense funding collapsed, food standards discussions are just beginning, and youth mobility negotiations remain distant, with the EU pressing for an uncapped scheme and reduced fees. Progress has been slow since Labour’s summit with Ursula von der Leyen.
Overall, rising calls within Labour to strengthen EU ties come as the government struggles to achieve already-promised adjustments amid difficult and protracted negotiations with the EU.
