Brussels, the capital city of Belgium and the de facto capital of the European Union, has always been at the forefront of discussions and negotiations with the United Kingdom since the Brexit referendum in 2016. As the UK officially left the EU on January 31st, 2020, the focus has now shifted towards establishing a new relationship between the two entities. In a recent development, EU commissioner Valdis Dombrovskis has expressed the EU’s willingness to re-engage with the UK and discuss closer trade ties, including the possibility of a customs union.
The news comes as a ray of hope for both the UK and the EU, as the negotiations for a post-Brexit trade deal have been at a standstill for months. The UK’s departure from the EU has left a void in the trading relationship between the two, and both sides have been struggling to find a way to fill it. However, with Dombrovskis’ statement, it seems that the EU is ready to take a step forward and explore new possibilities for a mutually beneficial trade agreement with the UK.
In an interview with the Financial Times, Dombrovskis stated that the EU has an “open mind” when it comes to discussing a customs union with the UK. He also added that the EU is willing to consider other options for a closer trading relationship, as long as they are in line with the EU’s principles and values. This statement is a significant shift from the EU’s previous stance, where they had ruled out the possibility of a customs union with the UK.
A customs union is a trade agreement between two or more countries, where they agree to eliminate tariffs and quotas on goods traded between them. It also involves a common external tariff, meaning that all members of the customs union apply the same tariffs on goods imported from outside the union. This type of agreement would benefit both the UK and the EU, as it would ensure smooth trade and reduce the risk of disruptions at the border.
The EU’s willingness to discuss a customs union with the UK is a positive sign for the future of their trading relationship. It shows that the EU is open to finding a solution that works for both parties and is not rigid in its approach. This flexibility is crucial, especially in the current economic climate, where the COVID-19 pandemic has caused significant disruptions to global trade.
The UK has also welcomed Dombrovskis’ statement, with Prime Minister Boris Johnson stating that the UK is ready to engage in discussions with the EU. He also added that the UK is looking for a “Canada-style” free trade agreement with the EU, which would eliminate tariffs and quotas on goods traded between the two. However, the UK has also expressed its openness to exploring other options, including a customs union, to ensure a smooth and prosperous trading relationship with the EU.
The EU and the UK have a long history of economic and political ties, and it is in the best interest of both parties to maintain a strong relationship, even after Brexit. A customs union or a free trade agreement would not only benefit the UK and the EU but also have a positive impact on the global economy. It would also send a message of unity and cooperation to the rest of the world, at a time when international relations are becoming increasingly strained.
In conclusion, the EU’s willingness to discuss a customs union with the UK is a positive development in the post-Brexit era. It shows that the EU is open to finding a solution that works for both parties and is willing to re-engage in discussions. The UK’s departure from the EU may have created a rift, but it has also presented an opportunity for both sides to establish a new and stronger relationship. Let us hope that the discussions between the EU and the UK lead to a mutually beneficial trade agreement that sets an example for the rest of the world.
