Labour Faces Internal Pressure to Rejoin EU Customs Union Amid Complex Negotiations
Wes Streeting has called for a deeper trading relationship between the UK and the European Union, suggesting that rejoining a customs union could become a distinctive Labour policy against Nigel Farage in the upcoming general election.
Polling indicates strong Labour support for closer EU ties, with 80% of Labour 2024 backers favoring negotiations on a customs union and 73% supporting talks to rejoin the EU.
A growing group of Labour MPs, including some senior ministers, are advocating for a more extensive approach to EU relations. However, the Prime Minister's office maintains firm red lines that exclude returning to the customs union, the single market, and freedom of movement until after the next election.
Practical challenges to rejoining the EU include difficult negotiations with Brussels and significant concessions demanded by the EU. Current UK-EU talks have been slow or stalled on issues such as defense cooperation (Safe fund), food standards, and youth mobility. Brussels is pushing for an uncapped youth mobility scheme and lower fees for European students studying in the UK.
The broader UK-US trading context also complicates the situation. The US has suspended a tech prosperity deal, pharmaceutical tariff discussions remain unresolved, and the May UK-US free trade agreement's baseline tariffs on UK exports are modest and not significantly driving growth.
Within Labour, there is internal political pressure on Keir Starmer to adopt a more pro-EU stance, reflecting his 2018 position that helped establish his leadership. Despite this, Starmer remains cautious about immediate commitments to rejoining EU structures.
