Keir Starmer rejects EU customs union after Lammy comments

Sir Keir Starmer has repeated he does not plan to rejoin the EU customs union, after the deputy prime minister said countries in such unions see a boost for their economies.

In a podcast on Thursday, David Lammy said it was “evident” that Brexit had damaged the British economy.

He added that rejoining the EU customs union “is not currently our policy” but highlighted that Turkey had seen growth as a result of its own union with the bloc.

The prime minister, who has said economic growth is his government’s top priority, said he wanted to build closer trade ties with the EU but not break Labour’s post-Brexit commitments.

Labour’s election manifesto ruled out returning the UK to the EU customs union, in which the remaining 27 member states charge the same taxes on goods imported from outside the bloc.

The party also said it would not rejoin the EU single market, where countries adopt common laws in some areas to facilitate trade in goods and services.

Instead, the government is trying to forge closer economic ties through a series of parallel agreements covering rules on food standards, youth visas, carbon pricing and electricity trading.

But the issue has reappeared on the political agenda in recent weeks, as the Liberal Democrats pushed the idea of ​​a new customs union deal with the EU.

Speaking to The News Agents podcast, Lammy said: “It is clear that leaving the European Union has seriously damaged our economy, taken us out of an important market and created serious friction.

Asked if he wanted to see the UK in a customs union with the EU, he replied: “That is not currently our policy, that is not where we are currently.”

However, he noted that Türkiye, which is in a customs union with the bloc, was “apparently benefiting and seeing growth in its economy.”

Turkey’s deal, which does not apply to agricultural goods or services, reduces the need to prove the origin of many goods it trades with the EU, a considerable source of trade friction for the UK since Brexit.

The model has previously been suggested as a more realistic option for strengthening ties than rejoining the EU’s own customs union.

However, the deal significantly reduces Türkiye’s ability to pursue an independent trade policy, a key promise made by Brexit supporters.

Asked about Lammy’s remarks on Friday, Sir Keir said: “The position we are taking has been clearly set out in the manifesto, and we have then followed it.”

He claimed the UK’s relationship with Europe had been “completely reset” since the Labor Party came to power last year.

Speaking to reporters earlier, a Downing Street spokesperson appeared to play down Lammy’s comments, reiterating that the government would seek to rebuild ties “while respecting our red lines”.

He added that Labor wanted to boost growth through “open trading relationships”, pointing to the government’s trade and tariff reduction deals with India and the United States, two deals made possible by Brexit.

The Liberal Democrats seized on Lammy’s remarks and asked him to “vote with us” next week, when the party hopes to force a vote on the customs union issue.

The party’s Europe spokesman, Al Pinkerton, added: “The realization is emerging that a customs union is the best way to solve Britain’s economic problems. It’s time for Lammy to put his money where his mouth is.”