Brexit Bites, 25 May 2018

May 25, 2018

As talks between the EU and the UK continue in Brussels this week, UK Foreign Secretary, Boris Johnson urges the UK Prime Minister to “get on with it” and take the UK out of the EU Customs Union.  In the next of our series of Back to Brexit Basics, we look at how Brexit could give rise to a heavy VAT cost for traders.

“Get on with it”

UK Foreign Secretary, Boris Johnson has said that UK Prime Minister Theresa May needs to “get on with it” and take the whole of the UK out of the EU Customs Union as soon as possible.  Currently there are three customs options on the table and we examined them in detail in Brexit Bites last week.  The options are; a new customs partnership with the EU, a maximum facilitation option which would see the use of technology and trusted trader schemes and a backstop arrangement where the UK in its entirety could stay within the EU customs union for a period of time.

There are reports of concerns in the UK among some parties that the backstop option could be allowed to become more permanent and this would go against the UK’s vision to cut ties with the EU.  

It’s been reported this week that the UK Prime Minster is planning to ask the UK Parliament to decide in June what type of customs arrangement they want to pursue with the EU. 

The next EU summit will take place in June and the EU is reportedly hoping that the UK can give some clarity on their Brexit strategy.