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Liam Fox plunges Brexit strategy into chaos by ruling out staying in any form of customs union with the EU

Speaking in China at the end of the PM’s three day visit he said it wouldn’t be 'compatible' with striking trade deals around the world

TRADE chief Liam Fox plunged the Government’s Brexit strategy into fresh disarray today by ruling out staying in any form of customs union with the EU.

Speaking in China at the end of the PM’s three day visit he said it wouldn’t be “compatible” with striking trade deals around the world.

 Liam Fox rejected the idea of staying in any kind of customs union because it would mean we would be bound by trade rules
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Liam Fox rejected the idea of staying in any kind of customs union because it would mean we would be bound by trade rulesCredit: Getty - Contributor

Government policy is to leave the current customs union with the EU but to try and strike a bespoke customs arrangement once we leave to ensure “frictionless” trade with the Continent.

But speaking to Bloomberg TV, Mr Fox said: “It is very difficult to see how being in a customs union is compatible with having an independent trade policy.”

“We would be dependent on what the EU negotiated in terms of its trading policies and we’d be following behind that.

“We have to be outside of that to take advantage of those growing markets.”

 Mrs May and Trade Secretary Liam Fox held talks with Chinese officials earlier this week on a trade visit
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Mrs May and Trade Secretary Liam Fox held talks with Chinese officials earlier this week on a trade visitCredit: AP:Associated Press

The bombshell comments came just moments after Theresa May refused to rule out remaining in a customs union in a media round of her own.

Overnight the Financial Times reported that British officials are secretly considering whether Britain could strike a customs union deal - which would hamper our ability to strike deals of our own.

The paper says that discussions are "live" in Whitehall - but Brexiteers will be fuming with any attempt to water down our ability to go global with new deals.

Downing Street dismissed the reports.

On Thursday, Mr Fox appeared to say he “could live” with being in a customs union after Brexit saying it hadn’t prevented Britain from growing exports in countries such as China.

Theresa May says Britain can get the Brexit deal it wants and a possible free trade deal with China

Earlier this week the trade chief faced a backlash after telling hardline Tory Eurosceptics they will have to “live with disappointment” and accept a softer Brexit.

He told The Sun that senior Brexiteers should stop attacking the Chancellor after he said there should only be “modest changes” to Britain’s relationship with the EU post Brexit.

The Government has been dogged by fierce criticism that it has no idea of its preferred “end state” for Brexit.

Earlier this week, German press mocked Theresa May by claiming she repeatedly told Angela Merkel “make me an offer” when asked what she wanted from Brexit negotiations.

 

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